I'm 36 with $11,000 in debt and no savings. I only make $3,000 per month plus an additional $800 through side gigs. How can I turn things around?

Build a budget and emergency fund

Build a budget that aligns with your financial reality. Even with an income of $3,800 a month, you can prepare a budget that supports your goals without making life miserable.

Try the 50/30/20 rule as a starting point:

• 50% of income goes to needs (housing, utilities and groceries)
• 30% to wants (entertainment, dining out and non-essentials)
• 20% to debt repayment and savings

In this case, $3,800/month breaks down to:

• $1,900 for needs
• $1,140 for wants
• $760 for savings or debt payoff

Depending on your area’s cost of living, you may want to adjust accordingly.

If debt is your most significant stressor, temporarily allocating income from the “wants” category to savings or debt payments could help you eliminate your balance faster. You may also want to consider establishing a modest emergency fund of, say, $1,000, before tackling your debt head-on. This can provide you with a financial cushion in case of an unplanned expense that might push you further into debt.

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Tackle your debt — and don't let it linger

Not all debt is created equal, but credit card debt in particular comes with a high interest rate. That might motivate you to get rid of it faster over other types of debt with low interest rates. Either way, the goal is to be debt-free, and if you’re juggling multiple types of debt, there are different ways to get there:

• Avalanche method: Focus on paying off debts with the highest interest rates and make minimum payments on other debts.
• Snowball method: Start with your smallest debt to keep moving on up to build momentum.
• Debt consolidation: If you have multiple credit card balances, consolidate them with a new loan or line of credit. This strategy can simplify payments and may require closing the original accounts.

Paying off debt takes time but every small step counts. Even putting just an extra few hundred dollars each month toward your balance can reduce your payoff period and save you loads in interest.

Increasing savings and income

If you’re working side hustles that earn you $800 per month, on top of your regular job, you might already be feeling stretched thin.

At the very least, once your debt is paid off, you have more room to start saving. It’s a good time to boost that emergency fund — experts recommend stashing away three to six months’ worth of expenses — and start putting money away for your retirement.

Take this moment to reflect on your accomplishments, and then ask yourself, what can you do moving forward? Does the budget need adjusting? Is this a good opportunity to look for better-paying work?

You took a step forward with your finances already, and you can do it again.