Managing an unpaid leave

Photo credit: Kristina Alexanderson/Flickr

As the US Government shutdown continues with no clear end in sight, hundreds of thousands of workers are waking up to the awful news that they are on unpaid leave, and even worse, they don't know how long this will last.

If you happen to fall into this category of workers or you know someone who does, here are a few tips on how to manage the situation.

#1: Focus on the essentials

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It’s time to streamline your expenses towards what’s essential. As resources dwindle, the key thing to remember is to spend whatever that is left wisely.

Now is not the time to get a facelift, revamp your wardrobe, go on a shopping spree, or sign up for another credit card. Just focus only on the essentials – health, food, bills, transportation and so on.

#2: Turn to your savings

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I’m certain not referring to your retirement savings here. Withdrawing money from a retirement account before retirement age should be a last resort after all last resorts. Here’s where the liquid / short-term savings come in handy.

However, when it comes to what you spend on, be sure to seek the best values in the market. Paying a high price is certainly no guarantee that you’re getting high quality.

#3: Find income elsewhere

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Who says you can’t earn from home? A person who is home all day can still earn a small income. If you take a good look around your home, chances are you have some items you never use.

Are you thinking what I’m thinking? It’s time to convert that clutter to cash. When was the last time you had a garage sale? Now will be a good time for that.

Doing jobs around your neighbourhood too can be considered. Also try turning your hobbies into small earnings; it’s a lot more fun than some jobs and rewarding too.