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Millions of people in the US are impacted financially by the ongoing Government Shutdown – longest shutdown in US history.   With the shutdown at its 29th day, financial impact of on those affected is quite significant.  Here are 5 tips for those that are impacted:

  1. Evaluate your financial situation – ie. how much in emergency fund do you currently have?  Based on your monthly run rate of expenses, how long will the emergency fund last?
  2. Try to find alternatives to pay for expenses, aside from cash to reserve your emergency fund.  If you have a credit card with no or very low interest, this may be a good vehicle for the short term.  Another option may be borrowing funds from family or friends.
  3. Find income generating avenues to fill the gap in earnings while government is shutdown.  This may be as simple as finding a part-time job, freelancing or seeking investments with immediate and on-going cash flow.  I’d also recommend using this opportunity to diversify income streams so you are not fully dependent on your 8-5 job to pay bills.  This will give you flexibility as well as strengthen your ability to counter and manage future unforeseen events such as government shutdown.
  4. Do not let the situation get to your head.  Communicate your situation with your family and friends – they can provide support in many ways.
  5. Spend smart and reduce your expenses where possible.  If you do not have a emergency fund, start to build one immediately.

 

Post Author: Abhi

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