The A-100 Financial Survival Guide: 5 Smart Moves for New Foreign Service Officers

Welcome to the Foreign Service! If you are currently sitting in A-100 (or "The Orientation"), you are likely drinking from a firehose of information. You are learning acronyms, making benefits elections, and trying to figure out where in the world you will be living in six months.

Amidst the chaos of swearing-in and flag day, it is easy to let your personal finances run on autopilot. But the decisions you make in your first few months as an Entry Level Officer (ELO) can compound into hundreds of thousands of dollars of difference over the course of your career.

At Carrington Financial Planning, we call this Diplonomics: the art and science of achieving financial independence while serving your country.

Here is your "A-100 Financial Checklist" to ensure you start your career on solid ground.

1. Establish Your Financial "Home Base" (Domicile)

Before you head overseas, you need to firmly establish your state of domicile. This isn't just about where you vote; it’s about where you pay taxes. Many FSOs choose states with no income tax (like Florida, Texas, or Nevada) to serve as their home base, if possible.

• Action Item: If you are planning to change your domicile to a tax-friendly state, follow the specific requirements now (driver’s license, voter registration, filing an affidavit) before you deploy.

2. Capture the "Free Money" (TSP Match)

The Thrift Savings Plan (TSP) is one of the best tools available to you, but you have to set it up correctly. At a bare minimum, you must contribute 5% of your base pay to receive the full government match. If you contribute less than 5%, you are literally leaving part of your salary on the table.

• Action Item: Log into your employee dashboard and set your TSP contribution to at least 5% immediately. If your budget allows, aim higher—but never drop below the match.

3. Decide: Roth vs. Traditional?

As a new officer, your salary today is likely the lowest it will ever be. This often makes the Roth TSP an excellent choice for ELOs. With the Roth, you pay taxes on the money now (at your current lower tax bracket) so you can withdraw it tax-free in retirement (when you might be in a higher bracket).

• Action Item: Review your tax bracket. If you are in the early stages of your career, consider directing your contributions to the Roth TSP.

4. Build a "PCS Buffer" Fund

Moving is expensive. While the government reimburses many expenses, the Foreign Service lifestyle involves significant upfront costs—reimbursable expenses that take weeks to pay out, temporary housing gaps, or vehicle purchases.

• Action Item: Aim to keep 3–6 months of living expenses in a high-yield savings account. This "PCS Buffer" prevents you from racking up credit card debt during transfer seasons.

5. Update Your Beneficiaries

You are filling out a mountain of paperwork right now—don't skip the beneficiary forms for your TSP and FEGLI (Life Insurance). These forms override your will. If you have a partner, spouse, or children, ensuring they are named explicitly is critical.

• Action Item: Check your FEGLI and TSP beneficiary designations this week. It takes five minutes but provides peace of mind for years.

You Don't Have to Navigate This Alone

The Foreign Service offers incredible benefits, but the rules can be complex. You don't need to become a financial expert overnight; you just need a plan.

Whether you are an ELO just starting out or a mid-career officer looking to course-correct, we understand the unique financial language of the State Department.