Here in the United States, the government shutdown has been going on for about a month now and 100s of thousands of government employees are currently working for free. Which is why some of the government agencies are currently not in service.
For example, many employees from the Transportation Security Administration have been calling in sick at airports across the countries according to The New York Times.
Even the FTC complaint assistant is currently out of service until the government is funded.
Now I definitely feel horrible for those hard-working government employees who are now struggling to make ends meet due to this government shutdown.
But there are great lessons to be learned when something like this happens. In this article, I will go over a few financial lessons that I learned and I feel that it is important that you know about it as well. Hopefully, this will help prepare you for future incidence. The truth to the matter is, if it happens once, then it can probably happen again.
Lesson #1. Don’t Place All Of Your Eggs In One Basket
If your only source of income is from a job, which is the majority of the world. Then you are in for a world of trouble when financial catastrophe hit.
That’s why you should try and create multiple streams of income. For example, my online business is not dependent on one source of income.
I can set up online advertisements, but I’ve temporarily turned it off to increase conversion for other areas of my blog. I am also an advertiser for multiple companies and I get paid a commission for when I help them generate a sale.
Let’s use an example, if ClickFunnels (one of my affiliate partners) go out of business, I would still be okay because I do work with multiple affiliate partners.
This is all possible because I operate an online business where I don’t have to be physically present to make a sale. My blog generates traffic and sales on its own. All I do is produce content and take care of the marketing part of my business.
Whereas if you work a job, it’s hard to diversify your income because you can’t make money unless you’re at work. And you’re limited to how many hours you can work per day which makes it nearly impossible to work multiple jobs and still have a life.
Lesson #2. Have An Emergency Fund
Okay, maybe running an online business is not your cup of tea. You should still have an emergency fund set aside just in case. For example, I have about 2 to 3 years worth of emergency funds set aside. So let’s say something happens to my online business, I will still have enough money to live off of.
I recommend that you have on average 6 months of emergency funds put aside. This is money that can pay for all of your expenses plus extras per month for a total of 6 months. This should give you enough time to find another job. Obviously the more money you have set aside the better.
Nobody can predict the future, so always expect the unexpected. So if you take the lessons that I’ve included in this article, you will be better prepared for the next catastrophe.
Besides starting an online business, you can also look into investment income, side gigs, etc. It doesn’t really matter as long as you have multiple streams of income. That way if one goes sideways, you still have money coming in.
And finally, having an emergency fund will ensure that you won’t have to worry about money for a short period of time. This will take out the stress and enable you to focus on what to do to restart your income stream rather than stressing out about rent, food, etc.
I hope this helps and I wish you all the best of luck. Are you currently a government employee going through this crisis? Do share your thoughts and leave a comment down below if you are affected by this government shutdown.