Was tun Sie, wenn Ihre Finanzen in Unordnung sind?

Be true to yourself and assess the situation honestly. Create a detailed budget to understand your income, expenses, and debts. Prioritize essential expenses and cut back on non-essential ones. Negotiate with creditors to set up payment plans or seek financial counseling for guidance. Consider consolidating debts or seeking professional help if necessary. Focus on building an emergency fund to prevent future financial crises.

If my finances are in disarray, I start by creating a budget to track my income and expenses. Then, I prioritize paying off high-interest debts and consider seeking advice from a financial advisor to create a plan for managing my finances effectively. Additionally, I explore tools and resources available online for budgeting, expense tracking, and financial planning to help me regain control over my finances.

One thing I've found helpful is to take inventory of your current financial situation including your debt. Be sure to note the total principal balance, monthly payment, interest rate, whether it's fixed or variable and number of payments left.

A budget is your best friend. YOU get to decide what's in it and how you want to spend your money. Of course you should include current fixed and variable expenses (including Shampoo, dog food, diapers, etc) - it all should be in there. Assess your spending from the last 90 days to get an idea of how much you spend in each category if you need help. And remember, a budget is a plan for spending, you aren't just tracking your expenses.

When establishing an emergency fund, prioritize liquidity and security. Aim for immediate or next-day availability. Remember, the goal is not high returns but rather to have funds readily available in times of need. Start by saving three to six months' worth of living expenses, with the ultimate goal of reaching 12 months for added peace of mind. Begin with one month's expenses and gradually increase to three months. Remember, the ideal timeframe varies based on individual circumstances. Consistent contributions will help build a strong financial safety net to handle unexpected challenges confidently.

For your emergency fund, you may want to start light if you have a lot of debt, no need to save 6-12 months of expenses if you have a lot of high interest debt. Paying down your debt will free up money that can be set aside in your emergency fund in the future. Remember there is a balance here. Pause paying extra on debt to save a quick stash (maybe $1k) and then hit debt hard. Once high interest debt is gone you can increase your emergency fund (you may also want to increase funds sooner if you have variable work or are in a risky industry).

Remember this is temporary! Look at all of your subscriptions and how much you spend eating out, these are easy targets. Speaking of Target, don't causally walk isles to see what you might need, create a list and shop online! Be sure to save some money for small splurges so you can stick to this plan and not be burnt out after a month of spending no money!

It's the gig economy for a reason, what can you do to increase your income while your getting out of debt and getting your finances back on track? The key is to also work smarter not harder, a minimum wage job that requires you to work every weekend might not be as profitable as a serving or delivery job that allows you to make your own hours! Take a look and assess all of your options that will fit best in your schedule and for your family.