1. You Don’t Save

Saving can help you get out of a financial rut. I know this can be difficult if you don’t have a lot of extra money, but in order to reach some of your financial goals, you have to learn how to pay yourself first. For example, maybe you earn enough to afford a mortgage payment, but you don’t have money for a down payment. To come up with a down payment, you need a savings plan, and this often calls for sacrifices and cutbacks. Building an emergency fund is a great first step, and you can easily set up an account with your local FDIC-insured bank.

2. You Don’t Earn Enough

Living paycheck to paycheck can certainly contribute to a rut finance struggle. You can’t get on top if you’re constantly in the hole. You can ask your boss for a raise or look for higher-paying jobs, but nothing’s really guaranteed. Getting out of a financial rut may require doing your own thing on the side. Maybe you can pick up part-time work or start your own part-time business. Since your day job covers your bills, your part-time income can build your savings and take care of extra expenses. If you need inspiration, check out our guide on creative ways to make extra money on the side.

Here are a few side hustle ideas to consider to boost your income:

3. Learned Behavior

If your parents didn’t know how to manage money, they may teach you the same bad habits. To improve your finances, you have to recognize the mistakes your parents made, and then learn how to manage money yourself. And the good news is that there’s plenty of helpful advice available—you just have to look. Overcoming these inherited habits is crucial when figuring out how to get yourself out of a rut.

4. Too Much of a Social Life

Let’s be honest for one minute, how much do you spend on entertainment and recreation each week? Do the math and you may discover the reason you’re stuck in a financial rut. Not that you should stay home and give up your social life, but the things you do in your spare time shouldn’t leave you broke. And if they do, it’s time for a budget checkup. Finding low-cost activities is essential, especially when you need to know how to manage your credit effectively.

5. You Don’t Know How to Manage Your Credit

If you get a credit card and immediately think of the things you’re going to buy, you might end up in trouble. It only takes a short amount of time to max out a credit card, but it can take years to pay it back. Depending on how much you owe, credit card payments may take a chunk of your disposable income, leaving you in a financial rut. If you are wondering how to focus on debt when in a rut, start by reviewing your credit report annually at AnnualCreditReport.com to ensure accuracy and to create a solid repayment strategy.

6. Living Above Your Means

This goes far beyond spending too much on entertainment or shopping too much. Take a look at your big expenses, such as your rent/mortgage or car payment. Ideally, housing should not exceed 28% of your gross income, and transportation should not exceed 20% of your gross income. If you’re spending way more in both areas, there’s a good chance you’re living above your means. You can read more about the 28/36 rule on the CFPB's official guide to debt-to-income ratio.

7. You Don’t Have a Plan

If you’re in a bank rut or struggling overall, you can’t just hope for the best. There is no magic wand to generate income or clean up your finances. This takes action and a good plan. For example, starting with your next paycheck, maybe you can consistently put money in savings. And with next month’s credit card statement, maybe you can pay more than your minimum. Reading up on tips for paying off credit card debt can give you a concrete path forward.

Don’t think that you can’t get out of a rut. These moves are the first steps to gaining control of your money. And with better control, you’re in a better position to reach long-term financial goals.

How did you manage to get out of a financial rut?