Want to know reasons you are broke always? It may not be because you don’t make enough money. I’ll tell you why!
We all know that money is not everything. But almost everything needs money.
Have you ever experienced running out of money weeks or days before your next payday? Or almost every day? You’re not alone. Trying to manage to get by is a herculean task.
Making money might seem like it’s the only solution; however, it’s not realistic for everyone, especially for those who cannot or do not have a source of living income. Plus, it does not solve the underlying issue.
If you’re struggling to make ends meet, one option that may help is to rethink your saving and spending habits.AMP It’s crucial to trace and pinpoint which financial handling behaviors keep you in debt so you can stay on track to achieving financial freedom.
It is important that you know that being broke is not always as a result of not earning enough. There are people who are always running out of money even though they make money in six figures. More often than not people who are always broke are so because they lack good money habits.
If you aim to stay out of debt, save more, not live pay check-to-pay check; then develop good money habits. These money habits can make you richAMP
Therefore, the reasons you are broke always can be reduced to just one factor: bad money habits. To avoid being broke all the time, these are the bad money habits to let go of and ways to overcome them.
The biggest possible reason that might keep you broke may be because you’re living beyond your earnings. This clearly implies that you exceed your regular budget and spend more than the amount you’re receiving. Perhaps, you are overspending or buying unnecessary things to keep yourself happy or keep up with those around you. While this isn’t always a bad idea, doing this regularly may put your pocket in peril.
To help yourself, try to get a big-picture view of your cash flow, which is the money that comes in and out every month. Identify where you’re overspending the most to know where you can cut back.
You may want to randomly get a nice hair color for a change, buy a drink at midnight to satisfy your craving, or buy a designer bag just to match your friend’s or favorite celebrity’s style. Nothing wrong with these. However, allowing these unplanned purchases to take control of you before you can control them can keep you from achieving financial flexibility.
Per Slickdeals’ recent survey, U.S. consumers generally make three impulse purchases a week, adding up to $450 a month. To help you manage bad buying habits, start tracking your finances and think twice or even thrice before buying something. Ask yourself as well, is this a need or a want? Will it still interest me after a week?
Also Read: 8 Ways to Manage Your Money to Avoid Personal Financial TroublesAMP
It’s tempting to always choose the “buy now, pay later” option with your purchases, especially since most of them offer valuable rewards like cash back or points.
If you continue to carry a revolving balance month by month, you may want to take a pause and settle all your balances in full before saying “yes” to another purchase. Don’t let yourself get stuck in the sinking sand. Moving forward, consider paying in cash or debit. This way, you can practice living within your means.
Thoughtlessly deciding to buy items on sale just because you feel like it’s gonna help you save up more won’t really help you achieve financial freedom. Here’s the truth: buying discounted items won’t help you save money. It’s a marketing strategy to keep you buying more.
While nothing is wrong with sale strategies, ensuring that you only buy what you actually need is the key to protecting yourself from unnecessary purchases and even debt.
Maybe the reason why you always run out of funds is because of FOMO aka the “fear of missing out.” This can really sabotage your budget and impede your way to overcoming debt.
For many, there’s this pressure to constantly keep up with the lifestyle of those around them even if they can barely afford to sustain it. If you’re feeling this way, it’s important to be honest with yourself, focus on your financial status, and consider surrounding yourself with financially savvy people. Make sure to also set boundaries rather than just saying “yes” to almost all unnecessary purchases.
We all know that recurring expenses are a pain point for any budget. These expenses include house rent, car payments, internet or phone bill, electricity bill, insurance, gym membership, and many more. If you’re paying too much for these repeating costs and you feel like this is something that will put your savings at risk, especially in the long run, try exploring ways how you can lower any of these expenses.
Start reviewing your account statements to identify how to lower your bills. Cancel unnecessary subscriptions and consider leveraging discount offers. For example, if you constantly transfer money bank-to-bank, it’s time to consider options that don’t entail charges.
If you wish to do home errands cost-effectively and conveniently, you may also consider harnessing online services. Through apps optimized for your needs, you can save on laundry and even on your other recurring expenses.
Not having an emergency fund is one of the obvious reasons you are broke always.
No doubt, life is full of unwanted surprises–unexpected costs. And without savings or an emergency fundAMP, you may be compelled to drain your bank account or borrow money to pay for these. To help you be prepared for any emergency, have an emergency fund saved up to cover possible costs. Even a small buffer can aid you in bouncing back faster from these financial challenges and protect you from being broke.
In conclusion
Here are some of the reasons you are broke always. To achieve financial freedom, balancing how you say “yes” to your needs and wants is the key. Keeping your regular expenses within your means, not giving in to impulses, religiously tracking your finances, and saving up will surely go a long way.
Sophia Young recently quit a non-writing job to finally be able to tell stories and paint the world through her words. She loves talking about fashion and weddings and travel, but she can also easily kick ass with a thousand-word article about the latest marketing and business trends and finance-related topics and can probably even whip up a nice heart-warming article about family life. She can go from fashion guru to your friendly neighborhood cat lady with mean budgeting skills and home tips.
Sophia Young recently quit a non-writing job to finally be able to tell stories and paint the world through her words. She loves talking about fashion and weddings and travel, but she can also easily kick ass with a thousand-word article about the latest marketing and business trends and finance-related topics and can probably even whip up a nice heart-warming article about family life. She can go from fashion guru to your friendly neighborhood cat lady with mean budgeting skills and home tips.