Fort Lewis Finance

Fort Lewis, officially Joint Base Lewis-McChord (JBLM), presents unique financial considerations for service members and their families stationed there. Understanding the available resources and common financial challenges is crucial for maintaining fiscal stability during your time at JBLM.

Pay and Allowances

Military pay is structured around rank and time-in-service. Basic Pay is the foundation, supplemented by allowances designed to offset specific expenses. Basic Allowance for Housing (BAH) is a significant component, varying based on rank, dependency status, and the zip code of your duty station. JBLM’s BAH rates reflect the cost of living in the Puget Sound region. Basic Allowance for Subsistence (BAS) helps cover the cost of meals. Being aware of the specifics of your pay and allowances allows for effective budgeting.

Budgeting and Financial Planning

Creating a budget tailored to your military income and expenses is paramount. Consider utilizing free resources offered by the Army Community Service (ACS) Financial Readiness Program. ACS provides counseling, workshops, and tools to assist with budgeting, debt management, credit repair, and investment planning. Military OneSource also offers confidential financial counseling services.

Housing Considerations

Housing options at JBLM include on-post housing managed by a private company, as well as off-post rentals and homeownership. On-post housing can be convenient, but waiting lists can be long. Off-post housing offers more variety, but necessitates careful budgeting to account for rent, utilities, and commuting costs. Consider the long-term financial implications of buying versus renting, especially if you anticipate frequent relocations.

Debt Management

High interest rates on credit cards and predatory lending practices can quickly lead to debt accumulation. The Servicemembers Civil Relief Act (SCRA) provides some protections against high interest rates on debts incurred before military service. Avoid payday loans and title loans, which often carry exorbitant interest rates. Seek assistance from ACS or a reputable credit counseling agency to develop a debt management plan.

Thrift Savings Plan (TSP)

The TSP is a retirement savings plan for federal employees and uniformed services members, similar to a 401(k). Maximize your TSP contributions to take advantage of matching contributions and tax advantages. Consider allocating a portion of your TSP funds to the Roth option for tax-free withdrawals in retirement.

Financial Scams

Service members are often targeted by scammers. Be wary of unsolicited offers, especially those that promise quick riches or guaranteed loans. Never share personal information, such as your Social Security number or bank account details, with unknown parties. Report suspected scams to the Federal Trade Commission (FTC) and the Army Criminal Investigation Command (CID).

Tax Considerations

Military pay is subject to federal and state income taxes. However, certain allowances are tax-exempt. Military OneSource offers free tax preparation services to eligible service members and their families. Familiarize yourself with military-specific tax deductions and credits, such as the moving expense deduction for permanent change of station (PCS) moves.

By understanding the unique financial landscape at Fort Lewis and proactively managing your finances, you can build a solid foundation for long-term financial success.