4 Military Money Moves for a Government Shutdown
“Government shutdown.”
For military families, those two words aren’t just part of the news cycle or debates on Capitol Hill. They represent delayed paychecks, sleepless nights, and the uncertainty of paying bills. If any of those thoughts have crossed your mind, you’re not alone.
As the government shutdown takes effect this week, consider these steps to help soften the financial blow.
1. Check with your financial institution.
Several military-focused financial institutions have announced interest-free loans and other paycheck assistance programs in support of Service members and their families. Contact your bank or credit union to learn more about the programs available to you and your family.
2. Tap into your emergency fund, if you have one.
You’ve likely heard this one already, but everyone should have a rainy-day fund. We suggest having at least $1,000 in savings to cover financial emergencies, but ideally you should have three to six months’ worth of living expenses set aside for a safety net. Consider using your emergency fund to cover your bills if your paycheck isn’t accessible.
If you haven’t had success building or maintaining an emergency fund, here are a few Tips to Build an Emergency Fund. These might be helpful after things get back to normal.
3. Review your budget.
Take a critical look at your expenses for the next few weeks. Focus on essential bills, defer nonessential spending, and allocate resources wisely. If you anticipate difficulties in paying a bill, reach out to the institution and explain the situation. Our new Budget Builder tool might be helpful in building your short-term spending plan.
4. Utilize military aid societies.
The various military aid societies like the Army Emergency Relief, Navy-Marine Corps Relief Society, Air Force Aid Society, Coast Guard Mutual Assistance, and the National Guard Relief Foundation provide counseling and financial assistance to military members during crises. They might be able to offer small interest-free loans, grants, or other resources to help you through this tough time.
The USAA Educational Foundation is a nonprofit, tax-exempt IRS 501(c)(3) and cannot endorse or promote any commercial supplier, product, or service. The content of this blog is intended for information purposes only and does not constitute legal, tax, or financial advice.