Young, jobless, and scared

Written by Dave Ramsey on . Posted in Finance

davernewDear Dave,

I'm 23, and I lost a good job a few days ago due to layoffs. My wife has been a stay-at-home mom with our 10-month-old daughter, and we have very little in the way of savings. What can we do to keep our heads above water?

Seth

Dear Seth,

I'm really sorry you're going through this. I've been there, so I know this is a scary time for you. There are some short- and long-term goals to think about in a situation like this, but let's look at the immediate future.

Go crazy about finding some kind of income. I don't care if it's delivering pizza during the week and working at the mall on weekends. Even if it doesn't completely replace your previous income, it will give you some cash to pay bills and stay afloat. On your off days, and before and after work, you can line up and do interviews for a more stable, full-time job. You may even have to trade off babysitting duties with your wife so she can earn some money too.

While all this is going on, have a garage sale and sell anything you don't need or want anymore. Just about anything that can be turned into income should be turned into income. In the process, prioritize your bills and other financial responsibilities. Take care of food first, then utilities, the mortgage or rent, then transportation. You guys don't need to see the inside of a restaurant for a while unless you're working there, and if things don't get better by Christmas, any gifts you give should be handmade crafts.

This is doable if you two work hard, pull together, and focus. God bless you guys, Seth.

Dave

Accounting 101

Dear Dave,

I've just started my own small business. As the owner and only employee, how do I determine my profits?

Brittany

Dear Brittany,

Here's a basic Accounting 101 definition for you, regardless of how many employees you have or how big your business may be. What you take in, minus expenses — in other words, your revenues minus your expenses — equal profit. Believe it or not, it really is that simple.

Since you're just starting out, I'd strongly advise you to set up a separate checking account for your business. That's the only way to accurately tell exactly what's going on within the business. When you co-mingle business money with grocery money and things like that in your personal account, you'll never have an accurate picture of what's really happening with your business.

Good luck, Brittany!

Dave
Author Information
Dave Ramsey
About:
David L. "Dave" Ramsey III (born September 3, 1960) is an American financial author, radio host, television personality, and motivational speaker. His show and writings strongly focus on encouraging people to get out of debt.

Add comment


Security code
Refresh

Related Articles

No Related Articles Found


calendar
Events
home app07 envelope
Contact
YouTube-icon
Channel
     
rokpad-thumb-2
Submit News
 RSS
RSS Feed
home app09 playVideos
Sign up for our eNewsletter

No Worries - we will NOT use your email for anything other than receiving West Michigan Christian in your inbox.

captcha 
faith-buttonPlease consider helping us by contributing to our publication. 

Donate directly or advertize your business on this site or in our newsletter.  It reaches thousands across West Michigan.