While a few federal government employees are getting paid, the majority are feeling a strain this month as the government shutdown continues and paychecks have stopped.
There's some comfort in the likelihood of getting back pay when the shutdown ends, but in the meantime, there are bills to pay and mouths to feed that won't wait for politics.
Here are some practical things you can do to manage your finances when your income gets disrupted.
Prioritize bills. A number of companies are offering help to furloughed workers, or people who are working without a paycheck. All you have to do is ask! Take some time to call your landlord or mortgage company and ask whether you can postpone payments. Call your credit card companies, auto loan and utility companies, too! Don't just skip your payments without calling and talking to someone! If a lender or utility company doesn't know why you aren't paying, you may end up paying additional fees and interest, or it could hurt your credit score. If a company you call isn't able to help you by skipping or deferring payments, those are the bills you should prioritize.
Budgeting. If you had a budget, chances are that it has changed a lot in the past month. If you don't have a budget, now would be a great time to go through your normal monthly expenses, subscriptions, needs and wants, and create a budget. If you need help, CommonWealth One has several certified financial counselors who are ready and willing to help you figure it out — and all you have to do is send us a message through online banking, give us a call or stop by a branch.
Reduce Daily Expenses. You may be spending less naturally by not getting that afternoon coffee with a coworker and not paying for gas or transit to get to and from work. But there are other ways to cut expenses, too! Be sure you're taking time to clip coupons, sign up for rewards programs, and seek out discounts offered during the shutdown. You probably have more time to cook at home, which can reduce costs. If you do want to go out, some restaurants are offering free food and other companies are offering specific discounts for furloughed feds. (See if you can keep those money-saving actions going after the shutdown ends, too, and start to put that saved money into an emergency fund in case this happens again!)
Pick Up that Side Hustle! You'll need to look at your employment guidelines, but if you're allowed to pick up a side hustle during furlough, you should definitely do that! If you aren't working, you have time to explore turning that hobby into a money-making enterprise, make holiday presents to sell or to give to people (to reduce your holiday spending), or even pick up some part-time work. Do you have things in your house that you aren't using and could sell? Look at your closet, and then look at using sites like Poshmark to sell clothes that no longer work for you. You can also try selling things on eBay or through Facebook Marketplace.
Look at Loan Options. If you need a short-term loan to get through until the shutdown ends, we're here to help! CommonWealth One has a variety of loans specifically for federal employees and others who aren't getting paid due to the government shutdown. Start by visiting cofcu.org/relief-assistance-programs. CommonWealth One is offering a $5,000 loan as low as 7.99% APR* and no payments for 90 days with repayment terms as long as 36 months. In addition, we offer short-term options to modify or defer loan payments, which can help you conserve cash. All you have to do is contact us. We want to make things easy on you during this really stressful time!
Thanks for being a member of CommonWealth One! We're here for you through the good times and the bad, and we really hope good times return to your home and workplace as soon as possible. In the meantime, don't hesitate to reach out.
