Could You Survive a Federal Furlough?

Three million federal employees escaped the Federal Furlough of 2024.

During my 36-year federal career, I experienced a federal furlough under the Clinton, Obama, and Trump administrations.   The longest one was 35 days.  Waiting for each one of them to end was very stressful.  You must follow the news daily for an update.

This last potential furlough would have placed federal employees out of work and not receiving any compensation until it ends.  Yes, many would be looking forward to being out of work during the Xmas season so they could do they shopping and gathering with family and friends.  It would make for a very happy holiday season but not for everyone.

The real question is can you survive a Federal Furlough?  Do you have the sufficient cash reserves to survive?  Inflation is still high. Gas prices, food prices and basic day to day expenses are still high.  If a furlough is a week or several weeks, you will not receive any income during that period.  Back pay will take several weeks for you to receive it.

Many career federal employees are living from paycheck to paycheck and many cannot handle an unexpected large medical bill or a large car repair bill.  Credit card interest rates are very high and using a credit card to pay for an unexpected bill is not a good back up plan.  Using a credit card during a federal furlough only finds you deeper in debt.

I always tell my clients and friends to have at least 90 days of cash reserves on hand to handle unexpected expenses or a federal furlough.  When I experienced the 35-day federal furlough, I had six months of cash reserves available.

So how can you prepare for the next Federal Furlough?

There are many options that you can do to build up a cash reserve.  First is to avoid any unnecessary spending.  These expenditures are Starbucks Coffee, daily lunches, lottery tickets, concerts, and dinner with friends.   Making coffee in a thermos and brown bagging a lunch to work will save you more money that you can imagine.

Recently, I have been getting together with friends, playing board games, and sharing a pizza.  We laugh louder and the conversation flows much easier than sitting in a restaurant.

If you want to take drastic measures, you can sell things in your closet and garage that are simply not being used.  I did this by having garage sales, selling on eBay and Craigslist.  You can make a pile of money by this method at the same time of eliminating clutter.

So, evaluate your cash reserves and start implementing ways to build up a cash reserves to prepare you for the potential of a Federal Furlough.  Proper Planning Prevents Poor Performance.

Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor.  Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 80 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.

Deferred Resignation Periods about to End for Many; Overall 12% Drop

Retirement Surge Likely as Deferred Resignation Periods End

Senate Rejects Bills to Defer Shutdown; Familiar Process Lies Just Ahead

Senate Bill Would Override Trump Orders against Unions

Report Describes Impact of Shutdown on Employees, Agencies

TSP Adds Detail to Upcoming Roth Conversion Feature

See also,

Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025

How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder

The Best Ages for Federal Employees to Retire

Best States to Retire for Federal Retirees: 2025

Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process