Help! I'm a Government Worker.

No matter what our political affiliation we all can agree that now is a pretty scary time to have your income source be a government job. Whether you are a Federal Employee, Government Contractor or New York Corrections Officer, your next paycheck, and your future income, is not certain right now.

I feel your concern! As the wife of a Federal Government Contractor, the regular threats of government shutdowns over budget disagreements, and the annual contract renewal always give us reason to pray and support each other through the uncertainty. But we know that we will be okay no matter what happens. Why? Good question, but the answer is simple, we trust God and we have a plan.

Planning Ahead - Long Term:

Step 1: Have Regular and Emergency Budgets.

Obviously, we know that some of the things in our budget are needs and some are conveniences or wants. Even in the line items which are needs, there is often room to cut back when in an emergency situation. For example, the grocery budget can be trimmed during emergencies by utilizing cheaper proteins like beans or purchasing lesser cuts of meat in bulk packaging. Figuring out your emergency budget when you aren't in a time of crisis will help you make clear, level-headed decisions about what you actually need to live on in case of an emergency. Remember that your Emergency Budget should include continuing to fund your sinking funds for things like car insurance, property taxes, etc. which will need to be paid regardless of your employment status but should not include luxuries like cable television, gaming subscriptions, vacations, and the like.

Step 2: Get out of debt.

I know this seems crazy when you are thinking about planning for an emergency but losing your income is a lot less stressful when you know you don't need to make the car payment, or, if you are further down the financial security road, a house payment and creditors won't be calling looking for their payments while you are trying to find a job.

Step 3: Fund your Emergency Fund.

Set aside an emergency fund which represents 3-6 months of your emergency budget. When we were discussing our finances prior to marriage, I learned more about what it means to be married to a Government Contractor and how all of those things work. Knowing that every single year the contract was up for renewal, and that he could be converted to a government employee at any time, making real the possibility of not getting paid during government shutdowns, we made the decision early on that we would feel more comfortable with a minimum of a 6 month Emergency Fund in the bank ready to protect us if something happened.

Planning Ahead - Short Term:

Once you hear that it is likely there will be a break in income go ahead and begin planning for the likelihood.

Step 1: Pause paying anything but the regular payment on debts, savings, retirement, etc.

This will help you build up extra cash in the short term until the emergency is over. Even if you don't have an Emergency Fund already in place, this can help start one and give you some cushion.

Step 2: Start implementing parts of your emergency budget.

For example, right now we are continuing to fund our sinking funds for clothing, technology, vacations, date nights, and our individual fun money but we aren't spending much, if anything, from those funds right now. This means in an emergency we can defund those line items if we need the extra cash. We are also doing things like turning down the heat, and spending less than normal on groceries, to be ready should the worst happen.

Step 3: Prepare to search for a new job or side gig.

Brush up your resume, professional social sites, and the like to be ready to hit the ground running if you do need to look for work. If you know the loss of income will be temporary, consider how you can make a little extra money during the down time so that you don't have to use up your emergency funds as quickly or replenish as much when the emergency is over. Maybe you have a hobby like baking or repairing things that you can use to earn extra cash. You might even consider starting now so that you are already in motion prior to the break in income.

When it Happens:

Step 1: Go into emergency mode.

Immediately implement your emergency budget, cut even essential costs as much as you can without causing danger to your family.

Step 2: Resist the temptation to go on a binge.

Don't binge anything, your favorite show, alcohol, ice cream, or chips. You don't need any of them! You need to face the reality of your situation and take action.

Step 3: Look for income.

If this is a permanent job loss hit the streets, don't just email your resume out and hope someone calls or emails you, go out and meet potential employers, network, talk to people you know in your field and let them know you are available immediately to start work. If this is a temporary situation, like a government shutdown, work your side gig, clean out your house or garage and sell things you don't need, start driving for a food delivery service, anything to keep you active and bring in some income to carry you through the down time.

After It's Over:

Step 1: Replenish your Emergency Fund as quickly as possible.

This will help you be ready for the next time there is an emergency. After all, you have now seen first-hand how much this helped you through a tough time.

Step 2: Resume your normal budget.

Go back to your normal budget (unless of course you found out that you really like not having the cable bill and are content with a streaming service). Start working on your goals again, getting out of debt as quickly as possible, fully funding your retirement, even planning that family vacation all need to be picked up right where you left off. Of course, if your income changed as a result of a job change, make sure to account for that in your normal budget moving forward.

Step 3: Review your emergency budget.

What did you learn while living on your emergency budget? Had you planned well? Did you fund the right things? Is there anything you don't need? Were you able to live on half of what you thought you needed in an emergency?

No matter where you are in your financial journey a little planning can help you be ready when the worst happens.