March 11, 2013 — This week on For Your Benefit, Certified Financial Planner and Edward Jones Financial Advisor John Jilek joins hosts Bob Leins and John Elliott to discuss sequestration, furloughs and the impact on your finances and TSP.
Together they look at the impact of furloughs reducing a federal employee’s salary by 20%, assuming a one-day-per-week work reduction.
Leins says that, if you normally receive a sizeable tax refund every year, you might consider temporarily reducing your income tax withholding. But this route is recommended only for those whose refund is typically “$1500 or better,” says Leins.
As for those living paycheck to paycheck, Jilek says the reduction in income brought on by furloughs should be a “wake-up call.” He says this might be an opportunity to re-evaluate your expenses and get rid of those things you do not really need. “In a tough time like this, eBay and Craigslist may become your best friends,” says Jilek.