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:
- 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?
- 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.
- 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.
- Do not let the situation get to your head. Communicate your situation with your family and friends – they can provide support in many ways.
- Spend smart and reduce your expenses where possible. If you do not have a emergency fund, start to build one immediately.
