How the recent Furlough imitated a Natural Disaster

There were some warnings that a Furlough was on the way, even though many people denied things would go that far for so long.  Most Natural Disasters hit without much warning.  Do you think that the 30 Day plus Furlough wasn't as devastating as a Natural Disaster to the workers, Agencies and supporting businesses as a Natural Disaster may have been?  They have many parallels.

Natural Disasters cause major disruptions in the lives of those who live wherever they strike.  Workplaces are often highly affected by Natural Disasters.  When Businesses are damaged or shuttered, then workers aren't paid, which affects how they eat, pay their bills and their shelter. 

It's January, and if you began to work your way through Disaster Prepping for Procrastinators this past Fall, you would have accomplished several things that may have helped slightly with the Furlough.  For one, you'd have 4 to 5 months of Food, water, and other survival items stored by now.  They would be things that were nearing their rotation date!  They would be items that your family normally ate.  And they would keep you from having to spend a great deal of your very limited income on food purchases.  Having to only buy fresh fruit, vegetables and bread would certainly help in the short term.

You would have your Important Papers gathered by now, which really help when it comes to seeing where your money is going each month if there is something you can cut back on or something that could be sold that you've hesitated about selling. With the threat of another shutdown, what can you do to help yourself and your family with the back pay that you will receive?  First, put the bulk of every dime you can into savings.  Of course secondly, you should catch up your bills.  I say do the bills second because if not, almost all of your back pay will go towards catching up your bills and there won't be anything left over for savings, or to use as a hedge in case the next shutdown comes on the 15th of February as expected.

 Contact creditors and see if they will look at your circumstances and not put late payments on your credit.  If it isn't possible to sway them, then include a statement in your credit file.  It will help when you apply for credit, and also jog your own memory as to why things were late.  See if there is a way to skip a payment, or put another payment at the end of a term, like with your Mortgage or Auto notes.  Put that money into savings.

You would also be wise to stockpile some food, water and anything you ran short on during the shutdown.  You should look at this situation as a warning, and see what you can learn from it that may help you if it happens again. 

While you have a viable job now, think about taking out a Home Equity Line of Credit to help you over the hump if this happens again.  You would only take out what you needed to tide you over if no money is coming in, then when you receive back pay, pay that money back immediately. Also, it may help to start working that 'Side Gig' you have always dreamed about.  It may not bring in your full salary, but might keep you afloat and not totally behind. 

If the chance of this happening again is too much to take, if you are near retirement age, you should consider all of your options. 

Sometimes it is best to get the money while you can and save it, purchasing things and planning for shortfalls before they occur.  It is estimated that many programs that are relied upon for retirement might well be insolvent in coming years, so plan wisely. 

Treat the Furlough as a Natural Disaster and look down the road to anything that might make your ability to earn money and pay your bills stutter or stop and start.  Don't wait for that rainy day to come suddenly, it is starting to rain more frequently, and without warning.  Don't procrastinate, look ahead and make a plan.

You can find our entire series of books on Disaster Prepping for Procrastinators on its own Amazon.com page at the following link:  Disaster Prepping for Procrastinators Page