A government shutdown could have an impact on your personal finances, particularly for federal employees.

<div class="block">A looming government shutdown could have an impact on the finances of everyday workers. Federal worker, in particular, could face furloughs and stoppage of pay, while the everyday American is likely to be less impacted. Andy Smith, executive director of financial planning at Edelman Financial Engines, joined &#39;Stretching Your Dollar&#39; to tell viewers what they should expect in the coming weeks if the government is unable to avert the shutdown.</div>

Stretching Your Dollar

Stretching Your Dollar: How A Government Shutdown Could Impact Your Finances

The impact of a government shutdown will be felt immediately. In fact, by non essential federal workers, they'll be furloughed with pay delays until the government reopens, but a shutdown really can affect all of us. So for more on what a potential government shutdown means for your finances and what to do about it, how to prepare. I'm joined by Andy Smith, executive Director of Financial Planning at Edelman Financial Engines and it's great to have you on the show and certainly a timely topic who would be most directly affected by a shutdown. Well, I think the poll shows that in terms of what people about or what people are thinking, if you're a non essential federal employee, you're likely going to be furloughed. There are some things that I'm working through with that client base so that they can consider what to plan for, how to approach these next couple of weeks. Most people, everyday consumers, everyday investors, you know, there's, there's not going to be that big of a hit, it's gonna be in the news, it's going to be emotional, it's going to be top of mind. But depending upon where you are, either one of those furloughed workers or everybody else. There are different things that you probably want to keep in mind as you work through these next couple of weeks. Ok. So let's follow on there. What are the things that you should be keeping in mind if you are one of those people? Sure. So if you're a furlough worker approach this, like any other financial planning sort of topic, you know, you want to plan your work and you want to work, your plans, check the most the doors politically agnostic about this entire thing. Remember that money isn't red or blue, money is green and it goes back to what you have in place. So if you are one of the furloughed workers, you probably need to get a really good sense right now, what your income is, what your expenses are and the differences between your needs and your wants. But when you think about it, a lot of times this isn't going to be any different than what we see with union workers, with strikes or the threats of strikes, the WGA UAW teamsters this summer, it all comes back to really identifying exact numbers for what's coming in, what's going out and what you absolutely need here over these next couple of weeks. What about people who rely on benefits like Social Security or Medicare? Could they be impacted? Uh, it depends on the actual program, right? So, depending upon where you're seeing or where you're relying on these, your programs are permanently funded concerns for that. So a lot of times what I'm working through with people in those instances would be, hey, what are the different scenarios? What if benefit, stop? What if the income changes? So furloughed workers, uh different benefits recipients, you need to really have a sense of what that income is, what that expense, what those expenses are. But more importantly, that period of time where you might have this giant question mark over everything that you're doing. But going back to your poll, 34% they're worried these might be the furloughed workers or the potential potentially furloughed workers that are seeing what happens here. Most people need to try to keep emotion politics, you know, threats of anything out of their decision making process. Because once you start trading on emotion, once you start trading on politics, there's a distinct possibility you're going to do more harm to your term situation than anything in the. I think that's a good point. Could a shutdown cause other disruptions just in our day to day lives? Oh, absolutely. So what happens is, I mean, again, going back to just normal financial planning scenarios. What if you have a spouse who dies? What if your social security changes? What if your pension plan changes all of these different scenarios? These are the things that you think about. These are the things that you work through during quiet times. So that when chaos comes in so that when the uncertainty comes in, you're not knitting the parachute as you're falling out of the airplane, you're trying to say. All right, what's the scenario? This is my plan. This is what I'm going to do or if this happens now, this is what I'm going to do. You only implement your plans when different things happen. It's not just because you see a headline, it's not just because you feel Xy or Z it all goes back to what you need, what you want and what you're trying to accomplish. Is it a case? And that a shutdown could really impact the entire economy that could have knock on effects potentially down the road. Whether it comes to consumer spending the jobs market, you name it. Of course, things that would play out over time. I think it comes down to remembering we've seen different things happen in the past and when you go back to those different events in time, you look at all of the different news stories, you look at all of the different prognostications that people were, were were coming out with. Oh my gosh. If this happens, this and this and this are going to occur or oh my gosh, if this happens, then all of these things kind of will, will fall apart and nothing will ever work. Right again, remember we've been through these sorts of situations before we will be through these situations again. If you have a plan, this is when you can go back and, and really kind of shut, you know, shut out all the short term noise and all the, just the, the things that are at you in your ear because you know what you got coming in, you know what you got going out. Yes. If you're furloughed, there will be some short term uh disruption, but the back pay will come back in. Just don't think that this time is going to be any different. Go back to really realizing what all is there and know that again, these aren't emotions, these aren't politics that have any play in your plan. You just need to figure out where you are and where you're trying to get to so that you feel comfortable going through these next couple of weeks, have a plan and stick to it. I like it. Andy Smith, executive Director of Financial Planning, Edman, Financial Services.