GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you could read more about oureditorial guidelinesand our products and servicesreview methodology.
You lose your job, you get divorced, your car breaks down, you experience a natural disaster.
Weve almost all been there.
Heres Dave Ramseys best advice for getting yourself out of tough money situations.
Youll end up putting gas in a car with no tires addressing the wrong issues.
Write down all of your take-home pay in one column and add up the numbers for the month.
Then, write down all of your fixed expenses for the month in another column and add them up.
Fixed expenses include your rent or mortgage, car payments, insurance payments, utilities, and groceries.
Now, subtract your fixed expenses from your income.
Hold yourself accountable with your spouse or another trusted friend or advisor.
This budget will ensure the money you have after you subtract your fixed expenses from your income remains stable.
Get creative with expenses.
Maybe you dont need the expensive car with the car payment.
Maybe you havetoo much house.
Maybe you dont need the extra cell phone line.
Maybe you’re free to shop at a less expensive grocery store.
Cut where you’ve got the option to to get your expenses well under your income.
Pay Off Debt
Your next order of business is to pay off your debt.
With the smallest debt, throw everything youve got at it every month until its paid off.
Then, take all that money and apply it to thenext largest debt.
Keep doing that until all of your debt is paid off, and then stay out of debt!
This includes your mortgage.
Ramsey advises taking out a 15-year mortgage at a fixed rate and paying it off as soon as possible.
The goal is to have zero debt and total financial freedom.
Get a side hustle.
There are dozens of ways to earn alittle extra incomeeach month.
If you want a raise, lay out a plan for how to get there.
If you want a vacation, budget for it and start saving.
An emergency fund should cover three to six months of your fixed expenses, including groceries.
But dont let that number overwhelm you.
Start with $100.
Grow that to $1000.
Grow that to your number.
Before you know it, youll be giving this same advice to others in need!
More From GOBankingRates
Share This Article:
