If you’re on administrative leave, especially due to the recent changes impacting Diversity, Equity, and Inclusion (DEI) programs, you’re likely feeling a mix of emotions: fear, uncertainty, maybe even frustration. I’ve heard from so many people in our community who are in the same boat. One message that stood out said:
“Hi, Sahirenys,
I’ve just been put on administrative leave at my government job, and I am freaking out. What should I do?”
First, take a deep breath. This situation is stressful, but you are not powerless. Here are three steps you can take to regain control of your finances, even if you don’t have an emergency fund. We’re going to work with what you’ve got. Let’s get started.
Step 1: Review Your Finances
The first thing you need to do is understand where you stand financially. Take a hard look at:
- What’s coming in: Do you still have any income streams? Unemployment benefits? Side hustles?
- What’s going out: Track every expense, from rent or mortgage payments to coffee runs.
- What you have access to: This includes savings, investments, cashback rewards, or even loose change in your piggy bank.
If you haven’t filed your taxes yet, consider doing it early to see if a refund can give you some breathing room. And if you already have a budget, now is the time to double down on tracking your expenses.
If you’re married or have a partner, include them in this conversation. Creating a game plan together ensures you’re both aligned. If you’re close with your parents or other family members, let them know what’s going on—they might be able to support you in small but meaningful ways.
Step 2: Identify Your Minimum Cost of Living
Next, you need to figure out how much money you need to cover the essentials. Here’s how:
- Separate your bills from lifestyle expenses. Your Bills will include your housing, utilities, groceries, and minimum debt payments. Your Lifestyle expenses will include dining out, streaming services, and other non-essentials.
- Calculate your total essential expenses. Highlight this number—this is your minimum cost of living.
Knowing this number gives you clarity. It tells you how much money you absolutely need to keep things running, even during tough times.
Step 3: Optimize Your Finances
Once you know your minimum cost of living, it’s time to make adjustments using the Cut, Keep, and Reduce strategy:
- Cut: Eliminate all non-essential spending. That means no dining out, no impulsive purchases, and maybe even pausing funding your financial goals like extra debt payments. You can redirect those dollars toward essentials.
- Keep: Focus on necessities like housing, groceries, utilities, and minimum debt payments. These are non-negotiable expenses that need to remain in your budget.
- Reduce: Look for ways to lower your bills if possible. Adjust your grocery list, call service providers to negotiate lower rates, or explore hardship programs that might offer temporary relief.
Every dollar you save strengthens your position during this challenging time. Remember, this is temporary, and you’re taking these steps to protect your financial future.
Give Yourself Grace
Finally, be kind to yourself. This situation is not a reflection of your worth or your work. It’s an external situation that’s beyond your control. Instead of letting it overwhelm you, grab a piece of paper, jot down your income and expenses, and focus on what you can control.
You’ve got this. And if you know someone else navigating administrative leave, share this blog with them. Together, we can face these challenges and come out stronger on the other side.