Budgeting as a First Responder Spouse

Being married to a first responder comes with challenges that most people never consider. Some months, they may get 100 hours of overtime, while another month, they may get absolutely none. Many people are often shocked to learn that first responders do not make much money, especially given their sacrifices.

Having a spouse with unpredictable hours and pay can be stressful, making it crucial to have a budget and a game plan. To add to the stress, there’s always the risk of injury on the job, which could mean a reduced or lost paycheck. That’s why it’s essential to have a financial strategy tailored to the unique challenges and advantages that first responder families face daily.

Understanding the Unique Financial Challenges of First Responder Families

Unlike most jobs, my husband can go to work and not come home for two or even three weeks. This is the reality for most wildland firefighter families. For many first responder families, it is common for them to work unexpected extra hours or shifts. Naturally, this unpredictability means the paycheck can be equally unpredictable.

Additionally, when my husband is away, it’s not like a typical business trip. It’s a high-stress experience, often involving 16 to 18-hour days with minimal sleep. Sometimes they sleep in the dirt, and if they’re lucky, they might get a hotel room. Doing this day in and day out, summer after summer, can take a toll on anyone.

While every marriage faces financial challenges, adding the stress of a first responder job makes it even more difficult to create a sound financial plan. This is why it’s vital for first responder families to have a budget, an emergency fund, and a strategy in place. Our spouses could be injured tomorrow and be out of work for weeks, months, or even longer. While everyone should have a budget and a plan, it’s especially critical for those who love a first responder.

Setting Financial Goals

The word “budget” often makes people pause and sometimes even shut down, but it doesn’t have to be scary.

Start by setting short-term savings goals, such as a vacation fund, holiday planning, and, importantly, an emergency fund. Begin by setting aside a small percentage, like 5% of each paycheck, and deposit it into a high-yield savings account. This way, your money works for you while you focus on other things. I prefer sending money to an account we never see—out of sight, out of mind!

If you want to plan a vacation on a budget, consider using credit card rewards and points. Many credit cards offer cashback on dining, groceries, and fuel, allowing you to earn rewards from your everyday spending. If you’re responsible with credit cards, this can be a great way to enjoy a free or heavily discounted vacation.

Next, think about your long-term goals, such as saving for retirement, your child’s education, or buying a home. While these tasks can sound daunting, they are entirely achievable. Begin by understanding the retirement accounts and options available through your spouse’s employer. If they’re federal employees, they might have a Thrift Savings Plan (TSP), and if they’re in the private sector, a 401(k) might be available. Be sure to look into any employer matches offered, as this is essentially free money.

If you have children and want to save for their education, explore college savings plans like the 529 plan. Recent changes allow these funds to be rolled into an IRA if your child decides not to attend college, letting it grow for 15 years before withdrawal. This ensures your child is financially supported, whether for college or retirement.

Owning a home is another significant goal for many Americans, including my husband and me. Homeownership can offer numerous benefits, including building equity—the primary wealth builder for most people. While saving for a home can be challenging, especially with high rent costs, it’s not impossible. Start by paying off as much debt as possible, including credit cards and auto loans, to free up funds for saving. Living below your means can help you save for a down payment of just 3% for a conventional mortgage—no need for the 20% many believe is necessary.

Consider speaking to several lenders to find first-time homebuyer or first responder programs that offer better rates or down payment assistance.

Setting goals is essential, but without a timeline, they can be challenging to achieve. Consider using SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound goals. For example, instead of saying, “We will buy a house,” say, “By July 2026, we will own a home in Colorado.” This provides a clear, achievable timeline aligned with your financial objectives.

Creating a Family Budget

Achieving financial goals starts with understanding your income and expenses. One effective method is tracking them on an Excel spreadsheet or even manually if you prefer a hands-on approach. Write down every expense for a month to identify what’s essential and what’s a luxury.

Categorize your expenses into fixed and variable expenses. Fixed expenses remain constant each month, like rent and car payments. Variable expenses, such as credit card payments or utility bills, can fluctuate. While it can be challenging to cut back on luxuries, remember that it’s a temporary sacrifice for long-term gain.

After identifying your expenses, create a budget using your net income (income after taxes). Subtract necessities like food, housing, transportation, and debt payments. Assign every dollar a purpose, whether for savings, bills, or fun money. A popular budgeting tool is the 50/30/20 method, where 50% of income goes to necessities, 30% to wants, and 20% to savings. As debts are paid off, allocate more funds to savings.

Emergency Fund: A Financial Safety Net

An emergency fund is crucial, especially given our spouses’ line of work. I recommend saving at least three months’ worth of expenses, ideally six months. This requires strict budgeting and discipline. Consider setting up an automatic transfer from your paycheck to a separate account reserved for emergencies.

If you find it challenging to save, re-evaluate your spending to determine what’s essential. While cutting expenses can be difficult, you’ll be grateful for the safety net in times of crisis.

To further safeguard your finances, try to base your budget solely on your spouse’s base pay, excluding bonuses or overtime. This ensures you live conservatively and save any extra income. By allocating overtime or hazard pay directly to your emergency fund, you can reach your savings goal faster and enjoy peace of mind.

Loving a first responder comes with many rewards—they’re compassionate individuals dedicated to helping others. However, their work can bring emotional and financial stress to the family. Open communication with your spouse and a solid financial plan are crucial for achieving your goals and preparing for the unexpected.

By implementing these strategies and maintaining open communication, you can create a budget that meets your family’s unique needs while preparing for whatever the future holds.