How to Make Extra Money While in the Military

Many military members consider supplementing their income to achieve financial goals, develop new skills, or enrich their personal lives. Pursuing additional income can provide financial stability and greater flexibility in managing personal finances. This endeavor also offers opportunities for personal growth and professional development outside of military duties.

Understanding Military Regulations on Outside Employment

Military personnel interested in pursuing outside employment must first navigate specific regulations. The Department of Defense (DoD) requires service members to obtain approval before engaging in off-duty employment. Each military branch supplements this DoD guidance with its own detailed instructions, such as Army Regulation 600-20.

Before beginning any outside work, service members are typically required to submit a formal request for approval to their command. This process often involves completing a standardized form, such as the DD Form 2947. The request requires detailed information about the proposed employment, including the employer’s name, the nature of the work, anticipated hours, and a description of the duties involved. This allows the command to assess any potential conflicts of interest or adverse impacts on military duties.

Common restrictions prohibit outside employment that could conflict with official military duties or create an appearance of impropriety. This includes activities that might use government time, property, or resources for private gain. Employment that could be perceived as endorsing a private entity or exploiting one’s military position is generally disallowed. Obtaining command approval before starting any outside work is important to avoid Uniform Code of Military Justice (UCMJ) violations or administrative actions.

Exploring Income-Generating Opportunities

With a thorough understanding of military regulations and necessary approvals, service members can explore various income-generating opportunities that offer flexibility. Remote or online work offers significant advantages due to its location independence, making it suitable for military members who may experience frequent relocations or deployments. Freelancing, for example, allows individuals to offer services such as writing, graphic design, web development, or virtual assistance to clients worldwide on a project-by-project basis.

Online tutoring is a viable option, providing a way to leverage academic or professional expertise to teach students remotely in various subjects. E-commerce ventures, such as dropshipping or selling handmade goods through online marketplaces, can generate income without requiring a traditional physical storefront. These activities allow for flexible hours, which is important for balancing military commitments.

For those preferring local engagements, services like pet sitting or dog walking offer flexible scheduling. Photography services, ranging from portrait sessions to event coverage, can be marketed within local communities. Teaching fitness classes, either in person or virtually, allows individuals to share their passion for health and wellness while earning supplemental income. Ride-sharing or delivery services, while offering flexibility, require careful consideration of time commitments and geographical limitations, especially for active-duty personnel.

Key Considerations for Supplemental Income

Once a military member has secured approval and begun generating supplemental income, several practical and financial considerations come into play. All earnings from outside employment are subject to taxation, making it important to understand and fulfill tax obligations. Individuals earning income outside of a traditional employer-employee relationship are generally considered self-employed by the Internal Revenue Service (IRS).

Self-employed individuals are responsible for paying both income tax and self-employment tax, which covers Social Security and Medicare contributions. This often necessitates making estimated tax payments quarterly using Form 1040-ES, rather than having taxes withheld from each paycheck. Maintaining accurate records of all income and expenses is important for tax purposes, as eligible business expenses can reduce taxable income. These details are typically reported on Schedule C and Schedule SE when filing annual tax returns.

Balancing military duties, personal life, and a side hustle requires effective time management and prioritization. Military responsibilities always take precedence, so it is important to schedule supplemental work around military obligations and personal commitments. Establishing clear boundaries between work, military, and personal time can help prevent burnout and ensure continued effectiveness in all areas.

For military members holding security clearances, certain outside employment or significant changes in financial status may require reporting to their security manager or through systems like the Defense Information System for Security (DISS). This reporting ensures transparency and allows the appropriate authorities to assess any potential risks to national security. Integrating extra income into a comprehensive financial plan can accelerate progress toward financial goals, whether it involves reducing debt, building emergency savings, or investing for long-term wealth accumulation.