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Shows & Panels
Sequestration and your finances
Monday - 3/11/2013, 9:41pm EDT
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.