Shutdown should be a lesson to everyone without an emergency fund

Posted: October 18, 2013

FURLOUGHED FEDERAL workers have been promised that they will be paid for time lost during the government shutdown.


Yes, you've heard this before. Yet here we are again, and workers across the country, including nonfederal employees and government contractors whose incomes were also affected by the shutdown, are feeling the financial pain after missing one paycheck or getting just a partial paycheck.

The Washington Post asked people to participate in an online survey about how the shutdown had impacted them. Almost two-thirds said it had affected them daily or threatened their livelihood. Here's what some workers wrote:

* California: "Check to Check, like most folks these days. Furlough put me back even deeper."

* Colorado: "Just worked out our budgets though Nov. 15 - half a paycheck this pay period and at this point no paycheck by Nov. 1 - currently over $300 in the hole and seeking delays to monthly payment for car, insurance, credit, student loans, mortgage."




I say this because often in financial workshops I have conducted, some participants, government workers in particular, would argue that they didn't really need to worry about having several months of expenses saved up. They felt secure in their jobs. Or I would get push back from people who believed they couldn't lose their jobs and therefore didn't need to put away three to six months of living expenses.

By the way, don't fret about having to dip into your savings. That's what an emergency fund is for - to address a financial shutdown in your life.



In many parts of the country, including the Washington metropolitan area, you have to contend with the high costs of housing, food, gas and transportation. If you have children, it's the high cost of day care or private school tuition or the seemingly endless fees for the kids to participate in sports or other extracurricular activities. I'm a parent. I get that.


