The US government shutdown for 35 days placing millions of Americans in crisis mode all in the name of border security. During the shutdown, I read multiple testimonials from workers who couldn’t afford to feed their children. I watched news segments that discussed how government workers faced the dilemma of whether they would pay their rent for the month or buy their prescription medication.
I work closely with several people who were directly impacted by the government shutdown. These individuals were extremely stressed over the past 4 weeks. Many of these workers were desperate to find side jobs to help make ends meet until the shutdown was over. Unfortunately they were unable to secure other jobs because they were mandated to show up for work without pay. Their roles were classified as essential to help keep the government running. Imagine that!
I could rant for hours about irritated I was with this entire situation but I will spare you from reading my outrage. However, I will tell you the interesting lessons that I learned from my observations of the government shutdown and the significant impact it had on the American people.
Lesson #1: The Government is out of touch with reality!
Some of our elected officials are insensitive to the plight of lower and middle class Americans. One official said in an interview that he didn’t understand why government workers were having to use their local food banks. Another mentioned that government workers could just go to their local bank and ask to take out a personal loan until Congress and the President found a solution. Another clueless congressman suggested that people should work out an arrangement with their landlords to give them more time to pay their rent.
All I could think is “are you kidding me? “
Our government officials do not seem to be aware that millions of working class Americans live paycheck to paycheck. They also seem to be oblivious to how credit works. You have to have a good credit score and steady income to even qualify for a personal loan at the local bank. Many people in America do not have that. This is why so many Americans fall into the payday loan or title loan trap. I feel that these companies prey on people who have exhausted all their options and need funds in a pinch.
If our elected officials were in touch with reality they would not suggest that American workers should go deeper into debt when most people are working diligently just to eliminate the debt they already have.
I don’t know about you but I have never heard my landlord say that they were willing to make payment arrangements during my time living in an apartment. Once you exceed the 5 day grace period, the eviction process begins. Many of the “solutions” presented were not very realistic for the average US citizen.
Lesson #2: It’s extremely important to have your financial house in order.
During the shutdown I asked myself, “If something were to happen to my job right now, would I be prepared? ” The short answer is that I would be okay short term. After a few months, I could end up in financial trouble. That was an unsettling thought.
Would you be financially prepared for a crisis ?
I read a shocking statistic the other day that said 44% of Americans couldn’t survive a $400 emergency! That is super scary to even think about.
Financial literacy is so important. Here are 3 simple things I’m doing to keep my finances in check.
First order of business is creating multiple streams of income. I’ve heard this advice a million times from popular financial gurus. This year I am making it happen. I’ve already started a tutoring business as a side hustle. I plan to tap into more streams of passive income over the coming months.
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Second order of business, sticking to a written budget. Surprisingly only 41% of Americans have a budget. I hate budgeting but it is a necessary evil to ensure that my expenses do not exceed my income. Budgets can serve as a tool to help save more money, which is the ultimate goal.
Lastly, I am reducing my personal debt. I have been on a debt free journey since August 2018. I only have student loan debt remaining at the moment. Fortunately, I am on track to finish paying off the last of the loans by the end of the year.
I was not directly impacted by the government shutdown but it hit close to home. I witnessed first-hand how stressful it can be when one is not financially prepared for a crisis. Hopefully the lessons learned from this crisis will motivate me to become more financially secure and less dependent on outside organizations in the future.
What did you learn from the government shutdown? What are your thoughts about the infographic above? Let me know in the comments below.
