Federal Government Shutdown enters day 28, now a week away from tying for the longest in US history. Here are some tips for furloughed feds to help with both the current budget gridlock on Capitol Hill and also prepare for future such closures.
Entering the fourth week, the current government shutdown does not appear to be ending soon. November 7th would be the second payday where furloughed federal workers would not receive a paycheck. Here is an overview of some simple tips to keep in mind regarding the closure of federal agencies.
Knowing exactly what your monthly fixed, variable, and discretionary expenses are will help reduce stress and allow you to know what areas of your budget can be cut quickly. If a shutdown seems likely, prioritize bills and essential expenses. Make arrangements with creditors or utility providers if necessary.
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Strive to have eight months’ worth of living expenses saved in an emergency fund. Prioritize needs over wants until you achieve this goal. Reduce discretionary spending and save as much as possible in the months leading up to a possible government shutdown.
Remember, credit should only be a temporary solution for emergencies. If you’re struggling to pay bills, consider the following:
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Steer clear of payday loans, as they come with high costs and can lead to a cycle of debt. The national average APR for payday loans is nearly 400%, much higher than credit card APRs.
One of the most significant impacts of a government shutdown is the furloughing of Federal employees. This means that a large portion of the Federal workforce is placed on unpaid leave until the government reopens. Employees deemed non-essential to the functioning of government agencies are the most affected. Although furloughed employees often receive back pay once the government reopens, the uncertainty of when that will happen can be financially distressing.
While many Federal employees are furloughed, certain essential personnel continue to work during a government shutdown. These employees, such as law enforcement officers, air traffic controllers, and border patrol agents, are crucial for maintaining public safety and essential services. Unfortunately, they are often required to work without receiving their regular paychecks until the shutdown is resolved.
Government shutdowns disrupt various services provided by Federal agencies, affecting the general public. Services like national parks, museums, and passport processing are temporarily unavailable or delayed during a shutdown. Additionally, government-backed loans and grants may be delayed or frozen, causing financial difficulties for individuals and businesses.
The uncertainty and stress caused by government shutdowns can significantly affect the morale of Federal employees. The fear of losing pay, job security, and the inability to serve the public can create a challenging work environment for these employees.
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