WASHINGTON D.C., DC — Around 800,00 federal government workers and contractors are currently enduring the longest government shutdown in US history. People across the country are feeling the impact in more ways than one but, most importantly, their finances have taken a huge hit.
If you’re living paycheck to paycheck, unexpected events, like a government shutdown, that lead to a delay in pay will make it harder to stay above water financially.
Government employees and people who rely on any form of federal assistance are feeling the greatest affects.
Thankfully, Tayvon Jackson of First Financial Security is here to help. Here is his advice on how to manage your money and survive times of instability.
1. Create a Budget
Budgeting is key to properly managing your finances. Write down exactly how much money is coming in every month and how much you are spending. Then, find areas to cut back and save.
2. Call Your Creditors
Creditors will know about the government shutdown so therefore you should contact them so they won’t contact you.
Tayvon Jackson on Great Day Washington
Hear Tayvon Jackson explain how you can survive the federal shutdown.
3. Avoid Withdrawing from Your Thrift Savings Plan
Although tough financial times can make it extremely hard not to withdraw your TSP savings, cashing out before retirement comes at a high risk.
4. Get a Furlough Relief Loan
The furlough relief loan is a 0% interest loan offered to people affected by a government shutdown.This can help you stay afloat while you are not receiving a paycheck.
All of these tips can help you navigate a government shutdown. If you're looking to prepare for a shutdown in the future, or just another moment of financial instability, be sure to set up an emergency fund 3 to 6 months ahead of your current payments. This is the first and most crucial step to being an efficient financial planner. For these financial guidelines and more visit iamtayjackson.com.
