There are so many people right now who, on paper, are doing well financially. But the actual pressure and day to day reality can feel very different. 

They are asset rich, cash poor.  

Ultimately, this is your decision as I cannot decide for you if you are ready to make large lifestyle changes to get ahead... Go back and consider what are your core values. Let them help you decide what is the right path to take (once you know them it will get really easy to make these big decisions).  

But some thoughts... 

• Given you have said your cash is ‘dangerously’ tight you need an immediate plan here. You have debts that can increase at the drop of a hat and if there is no buffer,you may end up having to make an emergency sell decision an asset. We hate that, so give a lot of thought as to what your plan is to make it more manageable.  
•  I note you’rea sole trader, so whilst your time is capped, in theory, your income isn't. Consider if you are charging correctly for your services, if there is a way you can bring in extra income or consult/ have a part time agency job if needed to keep money as consistent as possible. Check out your State/Territory initiatives around small business coaching. I know in NSW there are some ways to get some business coaching for free, get an expert to review your rates and business strategy to see how to bring in more income.  
•  If you haven’t got any emergency savings, I would say park investing for the moment and focus on that. When we invest in shares we want to do so knowing they can stay in there for a long time (to get that compounding working). Not having emergency savings could mean you need to sell at a terrible time in the market, or before you have had an asset for more than 12 months, meaning you don’t get any Capital Gains Tax Discount. The last thing you want is to have to pay more tax than you were planning to, because you had to sell something quick.
• Your car... Do you need it? Do you use it a lot? Is there one as safe and reliable that is cheaper? Car debt is bad debt(debt against an asset that doesn’t grow in value or provide an income). Paying large interest amounts on something that will go down in value when cash is tight is something to consider (long time readers will know I am not into cars so come with unconscious bias here. I get than in many areas of Aus it’s a non-negotiable).
• It’s time to review your cashflow. Once you have the numbers pretty good, start making new versions... ones where you get more income in (maybe thanks to a free business coach who can help you charge more for the same amount of time so you aren’t working more), then one with some cheaper car options (if feasible), then some with all ‘lux’ items removed.
• What impact would these options give you? Which are the ones that are realistically going to work for you? How do they align with your broader financial goals? 

Congrats on building your nest egg, I know progress doesn’t always feel as rainbows and roses as we expect all the time.

Get yourself a money date to sit down and map out the different options and the ultimate outcome from doing each. Which trade-offs are best for you (there are always trade-offs!) and then get into action mode!

Jess

Have a money dilemma?

Money dilemmas can be a nightmare! They can leave you up all night ruminating about what to do, have you feeling alone and isolated or just plain ol' stuck. So, we are here to help. I am going to tackle one a week and give you my unbiased, no BS general thoughts on how to tackle your conundrum. We would love for you to send yours (or someone you know) in. 

Obvs all of this is general advice only... especially important to note any and all of the comments above do not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs.