This year has been hard. Really hard. My husband was laid off last December, and while I’m employed in the nonprofit sector, my salary is significantly lower than what he used to earn. Thankfully, we had emergency savings, but after unexpected expenses this past October, we’ve had to rely on credit cards. My husband found a new job that starts in December, but I’m feeling overwhelmed about budgeting now that we’re starting over. We have credit card debt, depleted emergency savings, and need to get back on track with retirement savings. I’m scared and unsure where to begin. Any advice on how to start fresh would be greatly appreciated! What percentage should we allocate towards debt repayment versus rebuilding savings? I’m open to books, blogs, or podcasts as well!
First of all, congratulations on your husband’s new job! Consider calling your credit card companies to lower interest rates or transfer balances. Focus on rebuilding your emergency fund first since it helped you during tough times.
I recommend building a small emergency fund first—enough to cover deductibles—then tackle high-interest credit card debt. Some find it motivating to pay off smaller debts first for quick wins.
Here’s a roadmap: 1. Create a mini emergency fund of $1,000-$2,000. 2. Focus on high-interest debt with the avalanche method. 3. Maintain a bare-bones budget. 4. Gradually rebuild emergency savings. 5. Resume retirement contributions.
Thanks for the suggestions! I’ll look into Beyond Budget for managing expenses. YNAB was great but got too pricey for us.
Pay down your credit card debt first due to high interest rates. Create a budget listing all incomes and necessary expenses to cut unnecessary spending.
Start by closely reviewing your budget and reducing spending. Use the snowball or avalanche method for debt payoff—whichever suits your situation best.