As millions of Americans face uncertainty during the latest government shutdown, personal finance expert Suze Orman is offering a clear message: Don't panic — plan.
On her "Women & Money" podcast, Orman urged federal workers, contractors, and families affected by the shutdown to take control of their finances rather than freeze in fear. "Fear makes you hide," she said. "But courage makes you act."
Step 1: Identify What's Essential
Orman's first piece of advice is simple but critical: get honest about your expenses.
"Ask yourself, what are my essential expenses?" she said. "To keep a roof over your head, food on the table, utilities, and insurance. What is essential for you to live and pay? Everything else is a want. "
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She recommends temporarily cutting discretionary spending like streaming subscriptions, dining out, or nonessential shopping. Even for those not directly affected by the shutdown, Orman says this is a valuable financial exercise.
"You never know when something like this could happen to you," she added, noting that layoffs or corporate closures can strike just as suddenly.
Step 2: Communicate Before You Default
When money stops coming in, silence is the enemy. "The biggest mistake people make in a shutdown like this is you just go silent," Orman said. "You miss payments. You let your credit score absolutely just sink."
Instead, she advises being proactive: call your mortgage lender, credit card company, landlord, or utility provider before you miss a payment. Tell them the truth and ask for help.
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Her recommended phrase? Three simple words: "Could you please?"
"Could you please reduce my bill temporarily?" she said. "You would be absolutely amazed at how many companies will work with you if you simply ask."
Protecting your credit score, Orman noted, is essential because "protecting your credit score really is protecting your future."
Step 3: Borrow Smart — If You Must
If borrowing becomes unavoidable, Orman warned against payday loans or cash advances with sky-high interest rates. Instead, she recommends using a low-interest credit card for necessities like food, gas, or utilities — and saving cash reserves for later.
"It’s at this point in time I want you — don’t faint now — I want you to use your credit cards, but only for essentials for those needs," she said. "Use the one with the lowest interest rate."
For those with a Roth IRA, Orman also reminded listeners that contributions — not earnings — can be withdrawn without penalty as a last resort.
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Step 4: Stay the Course in the Market
Shutdown headlines can make investors nervous, but Orman urged listeners not to sell in a panic. Historically, market downturns tied to shutdowns have been short-lived.
She cited 2019's 35-day shutdown — the longest in U.S. history — when the S&P 500 actually rose about 10%. "While shutdowns may rattle your nerves, it's only in the moment," she said, "But history has shown us that they have been nothing more than a blip."
Her takeaway: keep contributing to retirement accounts and stay focused on long-term goals. "Financial independence belongs to those who don't get shaken by headlines," she said.
Building Courage — and Security
Ultimately, Orman sees this moment as a wake-up call. "Shutdowns prove one thing: you cannot rely on anyone else," she said.
Her goal for listeners: build an emergency fund that covers 8 to 12 months of essential expenses. That cushion, she said, "is what gives you true freedom and peace of mind."
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