John Hagensen, a financial expert from Arizona, provides financial tips for the 800,000 federal workers affected by the government shutdown.
According to a 2018 Report by the Federal Reserve, 40% of Americans in 2017 would be unable to pay for an expected expense of $400 or more. Maintaining 6-12 months in cash as an “emergency fund” isn’t anecdotal and specifically why financial advisers emphasize this as a foundational initial step when building a solid financial plan. If an emergency fund is in place, it’s life as usual and prepare for the promised back-pay once the government reopens.
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Assuming that there aren’t adequate short-term savings available, here are a few practical tips for federal workers:
- Look for a side hustle. Companies like Uber offer a quick, flexible way to help cover expenses.
- Call creditors. If you are unable to pay a bill, communicate with them your situation as an unpaid government employee and it’s highly likely they’ll extent your due date and reduce or wave any fees or late charges.
- Cut our all non-essential expenses. Most Americans budgets consist of many variable expenses that can be eliminated in times such as these.
What federal workers should not do:
- Do not overreact and make short-term decisions that have long-term implications.
About John Hagensen
John Hagensen is the founder and managing director of Keystone Wealth Partners. He also is author of Unleash Your Investments and hosts a weekly radio show, Myth Busting with Keystone Wealth Partners. His vision in starting his firm was to deliver financial planning strategies free from Wall Street’s embedded conflicts of interest. Hagensen holds the credentials of Certified Funds Specialist, Certified Annuity Specialist, Certified Estate & Trust Specialist, Certified Tax Specialist and Certified Income Specialist. He also holds a designation from the National Social Security Association.