NO Pay if Fed Shutdown Occurs

According to Rick Maze of the Military Times, military service members and certain civilian personnel will report for duty even though there is no pay should the Federal government shutdown occur.  I believe that this political issue affects all, active duty, guard & reserve. 

During the last government shutdown, military pay continued.  This go-around raises speculation for no pay and is probable.  With Gate's latest cuts making heads swirl, there is concern building among many miltiary personnel.   If a federal government shutdown should occur around April 8, 2011, then the real impact, while may be felt on April 15th pay day, will occur on the April 29th pay day.

What to do?

Politics is beyond your control, but what is in your control is self-management when it comes to your personal finances.  It is important to build your emergency fund (preferably for 3-6 months of living expenses).  Today, it is wise to stop all unnecessary expenses and prepare for no paydays. If you revisit your budget or spending plan and reallocate, you will be ahead of many in preparation for the next month.  Job searching is an option to consider; however, this is not an immediate solution to short-term cash flow needs unless it's a second job such as babysitting, delivering pizzas or other misc ways to bring in income. 

If you have debt in the form of credit cards, short-term financing or other, it is important to examine your debt and determine a way to maintain payments while paying it off as well.  Having no debt as you enter a probable no pay environment will lighten your burden.

Please consult your personal financial advisor for more information.

Editor Note:  Please also see a later blog posting Military Families Affected by Government Shutdown for further personal finance information.