Scenario: I have a car note, credit card debt totaling around $10,000, a mortgage, and a phone bill. I have a newborn baby and no child care. I have no emergency fund. I’m losing my job soon and I’m looking for a new one, but I have no idea what to do with my expenses if I can’t find a new job ASAP. I need some help figuring out what to do.

What I’d do:

If there is one thing to remember about money…it’ll always work out!

The path can be tough but have faith you will figure it out.

The first thing I’d do is review my spending to see what is absolutely necessary to keep and then I’d cut everything else.

Keep hustling on finding your new job - can you do “odd” jobs that help cover the bills in the meantime?

Here are some other ideas to help in the short term:

1. you can call your loan providers and ask them to delay payment / explain your situation and they will work with you.

2. is there any family or partner around that can help watch your baby while you job hunt?

3. if you don’t already, start to use YNAB to assign a job to your remaining cash [here’s 3 months free!]

4. can you get a roommate or move to a family member’s house?

5. can you sell your car and get one without a payment?

I’d love to do a free coaching session with you to help get your expenses straightened out while you go through this transition!

This weeks scenario emphasizes the importance of having an emergency fund to provide a little cushion when the going gets tough.

Remember, the name of the game in your personal finances is liquidity.

In other words, how quickly you can obtain cash if needed.

If you can’t quickly get cash then your cash flow locks up and you look to debt. When debt locks up, the gears freeze and you’re stuck.

So whether its a one month or six month emergency fund, you need some extra cash on the sidelines!

Why couldn't the bike stand up on it's own?

It was two tired.