Scenario:

I had some medical bills drain my emergency fund. The bills stopped but now I can’t work as much and I spend more than I make. How do I change this?

What I’d do:

I’m so sorry you are going through this and I hope everything is okay with you.

The fact that you had an emergency fund shows that you know how to be diligent with your finances to create excess cash.

In YNAB, you can create an emergency fund category and keep your extra money there…

I’m curious if you are working in a profession that you love. If not, what would happen if you switched to doing something you love? What would this do to your income?

It seems like you’d need to increase your income or hourly rate to fit the amount of time that you can work.

I assume you’ve got a good handle on your expenses, but if not then try to align the spending to your goals. Maybe you can move in with a roommate or parent for a short amount of time to get back on your feet?

Not ideal, but any way you can create a gap between your income and expenses would help!

As you can see in the scenario above, this individual burned through their emergency fund while dealing with their health.

Saving a small amount over time can have a huge impact on your financial situation!

This goes for both your emergency fund and your longer term savings.

I’ve seen so many financial situations where people are walking on ice waiting for one small crack to financially destroy them.

Then they use credit cards to “crawl” out of it and then have a mountain of credit card debt to climb.

Don’t let this be you - save your money, even if it’s just a small amount!

Why are prisoners bad musicians?

Because they are always behind a few bars and can't find the key!