Should I get a loan when I begin my career as a military officer?

As you prepare to graduate from college and embark on your new life as an officer in the U.S. military, you may be wondering where you'll get the money to buy the things you need for your post-college life.

From your uniforms or laptop to a car, a loan offered to new military officers, sometimes called a military career loan, can help fund the things you need right away. This is a loan some banks offer to soon-to-be-commissioned officers. It's aimed to help you start your career on solid financial footing. As a 2000 graduate of the U.S. Air Force Academy, I understand how valuable these loans can be.

But, as a financial planner, I also understand that borrowers have to repay these loans. For that reason, they aren't right for everyone. Read on to determine whether taking on a new debt could benefit you — and how you might put a loan to work if you decide to get one.

What expenses could I pay with a military career loan?

At this stage in your life, it may be hard to predict your post-college expenses. There's no one-size-fits-all list, because everyone's needs are different.

Here are a few of the common expenses many people fund with a military career loan:

• Car. Not only is a vehicle useful to help you get to your first duty station, it's nice to have some wheels so you can get away when you need to. That might not be the case for our ROTC friends, who don't have that 'gotta get away' feeling that us service academy people get. But having a car helped me escape the stress and gain back a little bit of independence. If you buy a car, remember that the total cost of ownership includes insurance and maintenance costs.

• Uniform expenses, including dress and utility. To save money, you can buy used uniforms at a discount.

• Class ring. Your class ring can be a treasured connection to your institution. Class rings can range from $1,000 to $3,000 — and can get even pricier, depending on what you purchase.

• Living expenses. This includes deposits on rent or utilities, such as cable, water and electricity. You'll also need furnishings and household items. This includes things like a couch, bed, pots and pans, silverware, etc.

• Pay off high-interest-rate credit card debt. If you're graduating college with credit card debt, you could consider paying it off with your career starter loan if the interest rate is lower. For example, if you're paying double-digit interest on your credit card and only single-digit interest on your military career loan, you may be able to pay the loan off and save money in the long run by not paying as much in interest.

Start with a budget for your new military life.

To determine whether a military career loan makes sense for you, start by making a budget. A budget helps you achieve your future financial goals by helping you spend less than you earn. While your budget will probably change once you get commissioned, having one now is just as important.

I remember when I received my very first second lieutenant paycheck after graduating from the U.S. Air Force Academy. It was the largest amount of money I had ever earned in my life. I felt like a king.

If you don't make a spending plan, your income could not last as long as you would like it to — and you may have little to none left over for savings.

To create a budget, consider these three categories.

• Savings and debt repayment: A military career loan would go in this category as well as other saving goals we'll discuss in the next section.

• Needs: Essential expenses like utilities, food, rent and insurance.

• Wants: Expenses that are discretionary like eating out and entertainment. These include things like a new phone if your old one is still working, entertainment and vacations.

Are you thinking about making big life changes, like getting married or having children, within the next three years? Make sure you understand how these changes will affect your budget. It's a good idea to review and adjust your budget at least once a year if you have a major life event.

Be sure your budget includes savings.

Saving is an important part of your budget as it's important to pay yourself first. Savings includes everything from an emergency fund to retirement or a future home.

Life happens, but not always according to our plans. Let's say you're driving to work and your transmission goes out. Or you get a phone call, and you must take an emergency cross-country trip to see a sick parent or relative.

When you have unexpected expenses, you need to come up with money fast. And unless you have an emergency fund in place, you're going to be forced to borrow, use a credit card, or rack up debt in some form or fashion.

USAA advises its members to set aside three to six months' worth of essential living expenses for emergencies. If that amount seems large, start with a $1,000 goal. Once you reach that goal, continue saving to reach three to six months.

So that you can easily access it when needed, consider keeping this money in a savings account. A military career loan could be a great way to jump start your emergency fund.

For next steps and details on how to create a budget, read our article, How to create a budget: Lessons from being broke.

Will a military career loan boost my financial security?

Now that you've taken the time to list your expenses and compare them with your income, you're better equipped to determine whether it makes sense to apply for a military career loan.

If your expenses are higher than your income, taking on a loan might not be wise. Also, it's not a good idea to get a loan if you just don't need it.

If your everyday expenses are higher than your income, resist the idea of taking out a loan. Instead, review your budget and see which expenses you can reduce. If you're already spending more than you earn, taking on a new debt only amplifies the problem.

Remember that a loan, whether a military career loan or some other type of loan, is a new debt. It will accrue interest that you do have to repay. If you don't need it, don't take it.

On the other hand, military career loans typically offer a low-interest-rate debt that can be helpful if you're just starting out and need money for essential living expenses. As long as you're living within your budget, it can help you jump-start your military career.

The USAA Advice Center provides general advice, tools and resources to guide your journey. Content may mention products, features or services that USAA Federal Savings Bank does not offer. The information contained is provided for informational purposes only and is not intended to represent any endorsement, expressed or implied, by USAA or any affiliates. All information provided is subject to change without notice.