I was in high school for the last big gov shutdown and I can remember my father having to show up for work without a paycheck. It was rough for us back then. Now, my husband is a gov employee that may be affected by this proposed shutdown. I know many people think it won't happen, but the sad truth is that it has before and can again.
There was a period where my husband and I were both unemployed through no fault of our own. We used credit card to keep our house, utilities and food on the table. When we were blessed with his current job, we went overboard with with what I call 'income potential' spending. Shame on us. We know! We learned! We have implemented and know very well Dave Ramsey's Baby Step program via the TMMO book and his seminar we went to see live this month was just icing on the cake. We have been working hard purposely living paycheck to paycheck so that we can chunk down on the almost six figure debt we have....and things are going nicely!
I have two questions:
1) I want to stop chunking down the cc's and put that money into savings up to when this shutdown thing gets figured out one way or another. My thinking is that if we keep it back, then we won't have to put as much back on a cc should the shutdown happen because the truth is, the 1000 emergancy fund we have per DR won't even put a dent in our fixed debt (not counting cc debt). If we need the money, then we will have it and have to hopefully use our cc's less. If not, well, then I guess we will have a chunk of money to put down on the cc when it all blows over.
Does this sound reasonable?
2) I know they say this shutdown could save billions. But to what cost? The people protecting the country who are living paycheck to paycheck already? Forcing the use of cc to keep afloat (even for just two weeks). The late fees occured, the credit dings that will be issues, the mortages that will be missed? Even if everyone is backpaid (and I know for a fact that the 21 day shutdown back in the mid 90's (1995, I think) didn't backpay everyone), it seems to me that the damage would already be done. Am I the only one concerned?
I know many mama's have researched this, probably even more than myself, and are well informed. Please share your thoughts with me...
In my opinion, the government shut down wouldn't be neccessarily a bad thing. However, instead of shutting down the employees, how about stopping the ridiculous amount of money spent on all of the gov't programs that we do not need! Just doing that would save billions of $$!
Then, if they need to cut more money, start with the employees who get paid too much money for hanging around the water cooler all day.
This is exactly why there should be limited government & less government jobs. This is more proof that big daddy government hurts people more than it helps them.
Even DR makes lots of wisecracks about government. I think you should make minimum payments on cc & try to get a stockpile for emergency funds. Good luck.
I'm a big DR fan, but I would probably do what you're suggesting (get less aggressive with the CC's and instead stockpile cash).
Re: the government - private sector companies have had to cut way back, let people go, get laid off, etc. It's very, very painful. At some point the government will have to do the same thing.
I don't agree with cutting military pay - I agree with Kristen M. on that front.
I don't know what the answer is, but I'm scared for our nation . . .
If you are nicely chunking down the 6 figure debt--start "chunking up" your 3-6 mos. of expenses emergency fund. Go back to minimum payments if you need to in order to do that.
And if you were TRUE DR followers, you wouldn't HAVE credit cards to "fall back" on! Cut 'em up!
I hope it's only a "threat". My husband is active duty Army and currently deployed. We have no debt (other than a mortgage) and money in savings, but I will be one angry lady if his pay doesn't come it. We would survive financially, but the fact that he might not get a pay check while serving in Iraq is just wrong!
My husband is also a state employee and the talk isn't good. However, I recommend everyone have a back up plan or Plan B. That's what we got involved in a few years ago and we've been able to pay down ALL debt and work towards out 6-months 'stockpile' as well as have spending money. There was a great article on CBS early morning show last week. Here's the article and video - http://www.cbsnews.com/stories/2011/03/21/earlyshow/livin... I worked a couple of those businesses and - for the last 7 years - have been extremely happy with the last one listed in the video.
Hope this helps
I'm not worried about a shut down.
We have enough saved for a rainy day.
The mortgage is the only debt we have and we just rented out our old house so we have some income coming in besides my non government job if my husbands paycheck is held up for a bit.
They always figure these things out sooner or later.
I wish they'd shut down foreign aid first before they hold back paychecks. You'd think our citizens should come first as far as our own government is concerned.
Keep working on cutting that debt down and get rid of the credit cards till you only have one or two. Once the debt is gone, only use the cards when you can pay them off every month.
If you are living paycheck to paycheck, you need to figure out a way to get away from doing that.
No employer is responsible for how you stretch your paycheck.
Can you do some baby sitting to bring in some extra cash? Can you rent out a room? Have a garage sale to sell things you no longer need. Maybe your kids are old enough to walk neighbors dogs for a few bucks?
My husband a contractor for the Department of Energy, so he works FOR the government but doesn't get government employee benefits. He is the sole wage earner in our family (I'm a stay at home mom with a 6 month and a 2.5 year old) and I have no kind of job training or college degree to get a job that will pay enough to pay for childcare. We are terrified of him losing his wages--we are barely hanging on as it is, and we live in a ridiculously expensive area.
We would lose a large chunk of change if my husband was furloughed for 2 weeks. He is our primary wage earner and we have been putting money away and cutting back in the hopes of weathering the storm if it happens.
Years ago, he was required to work and did not get any paid time off like his coworkers essentially did (they got paid eventually). I think that some of what's going on is a lot of yammering by freshmen in Congress looking to look like they are doing something. I find it telling that the DoD is exempt. Will the post office be, too? Will people be able to have their returns processed? Checks mailed? What about the seniors waiting for their SSI? At what point is it an important enough job to not be part of the shut down? Would they shut down the TSA and close airports for lack of security? Or are they just going to tell all the little people, the GS7s and 10s with kids to feed that they need to go without pay? It seems very self-serving.
I'm sorry for your pain. I am hoping the folks that were elected will behave as adults and find a compromise to keep the govt. functioning. In spite of differences about spending many folks appreciate having services, such as social security, the military, schools, highways, air traffic controllers, etc. I don't know what you should do for your situation, but know that others are also concerned and wishing you well.
Yes I am very concerned. Our national debt is around the $14,000,000,000,000 mark and growing. That averages out to approx $45,000 for each U.S. citizen. That is one scary number and there needs to be some serious spending cuts. Unfortunately, the proposed budget cuts are lame when you consider the debt we now have. So, yes I am concerned about a shutdown and how that will affect people but that may be necessary if they don't work together and make real cuts.
