Thread by @themoneycoach

.@NYTimes says the typical federal worker has missed $5,000 in pay so far due to the #TrumpShutdown. Good analysis.

But let’s discuss the long-term impact & how this disruption will hurt the personal finances of our fellow Americans for YEARS to come. /1

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An economic shock, like the sudden loss of a paycheck, usually has very long-term negative effects. It’s not just a blip.

Even if people get their back pay, or land another job, this #TrumpShutdown will burn folks in many ways for months or years after it’s officially over. /2

A study from @pewtrusts found that when people face a major financial shock, including a significant reduction in income, by six months later, 50% of those impacted by the financial shock still hadn’t recovered. /3

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A @TDAmeritrade survey found that when people experienced a financial disruption, on average they took nearly *FIVE YEARS* to completely recover.

The typical person lost more than $16,000 in savings or investments as a result of the setback. /4

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Even worse: 49% of those polled by @TDAmeritrade said the financial disruption they endured would force them to retire later than planned, or possibly *forgo retirement* altogether. /5

How can one’s retirement – years or decades away – be impacted by a single economic shock today?

Two reasons: Financial disruptions have a significant impact on the average American's long-term savings habits. Also, just one disruption can lead to a host of other $ problems. /6

Most people don’t save enough as it is; they live paycheck to paycheck. That’s obvious in the many heartbreaking #ShutdownStories that are trending.

So forget about them being able to save or #invest. Folks caught up in the #TrumpShutdown are currently just trying to survive. /7

Sadly, the shutdown isn’t over yet. That means more pain is in store for federal employees, contractors & small biz owners.

For many, one of the worst financial legacies of the #TrumpShutdown will be bad credit, or damaged credit, which will also cost people dearly for years /8

The longer the #TrumpShutdown continues, the worse it will get for the nation’s 800,000 federal employees who can’t cover their mortgages, pay their credit cards, or make their car payments and other bills on time. /9

It’s horrible to go without a paycheck for a month. But you know what’s worse? Dealing with the *future* consequences of missing payments.

A poor credit rating is no joke. Having a low #credit score costs people in numerous ways – financially, personally & professionally /10

To get by, some affected by the #TrumpShutdown will turn to costly payday loans, which trap people in a toxic cycle of high-rate #debt. Others will get saddled with subprime #mortgage rates and/or face higher auto #insurance premiums because of dings on their #credit reports. /11

Nearly half of all U.S. employers run credit checks on job applicants, according to @SHRM. So federal workers who can’t keep up with their bills & have their credit damaged amid the #TrumpShutdown will have a harder time landing future jobs too. /12

Finally, let’s not forget that financial woes (including credit issues) add major stress to marriages. The @federalreserve has found that couples with bad credit are more than twice as likely to divorce as couples with high credit scores. /13

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Bottom line: the damage done by this lengthy #TrumpShutdown, is already incalculable.

We're seeing havoc wreaked on everyday Americans today.

But let's not forget the layers of financial and personal heartache that will endure for months, years & possibly decades to come. /14