ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

3 Personal Finance Lessons From the Government Shutdown

Updated on April 26, 2020
Derek Torrisi profile image

Derek has studied business administration, psychology, and economics. He writes about personal finance.

The government shutdown of 2018-2019 revealed some very important personal finance lessons that we can all benefit from. Ask yourself: What would happen if your income suddenly stopped? What would you do?

  • A study by the Federal Reserve reported that 4 in 10 adults wouldn't be able to cover a sudden $400 expense without borrowing or selling belongings.
  • A study by CareerBuilder reported that 78% of U.S. workers live paycheck to paycheck.
  • Another study by CareerBuilder reported that 70% of workers are in debt.

These are not good statistics, people. This is not a good way to live. Now I understand that every situation is different and sometimes it is very tough to break free from bad habits but every step toward financial independence is one step away from being dependent on the system. I want to talk about three very important lessons that we can all learn from this government shutdown.

Have a Solid Budget

The best time to have a budget was yesterday, the second best time is today. Having a budget ensures we know all our financial responsibilities and we can cover them under normal circumstances. Having this plan keeps us aware and sharp as to what is going on with our money. The best time to set up a budget is when you don’t think you need it because things can change very quickly. If you have some extra money it’s a perfect opportunity to start saving and laying a solid financial foundation for your life.

Have an Emergency Fund

An emergency fund is critical for your financial wellbeing. An emergency fund prevents you from being completely dependent on your job and keeps you out of the paycheck-to-paycheck trap. The common advice is to set aside enough to cover 3 months of expenses but even 1 month can protect you from sudden income gaps. The stress that these people had to go through over the past month is not fair and not right. Having to chose between feeding your family or paying your mortgage is a situation best avoided. While it’s easy to point fingers at the government this whole situation reinforces the importance of having some money set aside for a rainy day (or month). So please, even if it’s a few dollars a week, start building an emergency fund to protect your finances and your current lifestyle.

Have Some Side Income

Having multiple sources of income is a cornerstone of financial independence and it is very common advice from most personal finance experts. Whether it’s a side job, a small business, or a hobby that you can make money on, having the additional income can really you build your financial castle. The extra income can provide significantly higher savings during good times and can cover and gaps during bad times. Depending on your skills and how much time you are willing to invest you should explore what options there are for making extra money here and there. Avoiding the paycheck-to-paycheck trap is the top priority here and having more than one income decreases your dependence on your primary income.

© 2019 Derek


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)