Dear 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 ten-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 stacking grocery shelves 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, prioritise 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

***

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 chequing 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

Dave Ramsey is America’s trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven bestselling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.