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Are you tired of always being broke?
Never having any money to do anything fun…living from paycheck to paycheck, or worse.
I hear you, I have been in all these situations and it is totally discouraging.
Having no money is a bad situation to be in. If you ever want to stop saying “I’m broke”, you need to start living below your means.
Of course, a simple solution like making more money will fix your problem, right? Well, not necessarily.
Even if you do earn more money, if you don’t get down to the real reason you are always broke, then making more of it really won’t do you any good.
Simply put, if you don’t have the ability to manage money now, how will having more of it help?
Luckily there are some things that you can do now to help keep more money in your pockets, no matter how much (or little) money you make.
HELP I’m Broke!
Ten Reasons You Have No Money & How to Fix It
1. Debt is keeping you broke
Being in debt is a huge reason you are always broke. It’s probably the number one reason most people have no money to make ends meet.
It’s very hard to not be broke when you are giving all your money to pay the high-interest of debt. Shuffling money around every month just to get those minimum payments made.
Or, even worse, getting more in debt because you can not make the minimum payments. You then get hit with late payment fees and increased interest rates. It is a vicious cycle and very discouraging to be in this place.
Fix: Stop giving all your money to credit card companies. Do whatever it takes to pay off your debt so you can keep that money for yourself.
Create a debt repayment plan and stick to it. You need to make paying it off a daily priority until it is gone.
You may need to work longer hours and you will have to give up some of the luxuries or wants you’re allowing yourself right now.
It won’t be easy, but just think of how much better life will be without that debt.
2. You don’t pay yourself first
When you are always broke, you have to make paying yourself a priority. Let me just clarify the term “pay yourself first”.
While some people will translate that as “you don’t reward yourself”; others (which have the correct answer) would translate that as “save money now to help you in the near and distant future”.
This means that you need to save money for emergencies, as well as short and long-term financial goals, and retirement.
Fix: Arrange to have a specific amount deposited directly from your paycheck every week into dedicated savings account for emergencies.
Don’t forget about saving for future financial goals such as making major purchases, whatever they may be.
You also need to put money aside for retirement, if your company offers a 401K you need to contribute to it, even more so if they offer a match.
Why not take advatage of getting free money!
3. You don’t have a budget to manage your money
You don’t have or follow a budget, which means you are not in control of where your money is going. Instead, you letting your money control you.
Maybe you pay your bills on time every month but it’s without any regard to how much you are paying for these things or with no thought of how you could cut back to save more.
Fix: You need to create a budget NOW. Budgeting and tracking your spending is crucial if you are in financial disarray.
A budget is a must if you ever want to reach any kind of financial goals.
A budget is your roadmap to getting out of debt, having money saved for the important things in life, as well as reaching your goals and dreams.
4. You are living in the now without regard to your future
You are living in the now and wasting money away on instant gratification. Even if you can make ends meet from week to week, without a long term plan, you’ll stay in this situation forever.
If you are spending your money on instant gratification and things you want now, how will you ever get ahead of the game in the future?
Instant gratification is nice but it doesn’t last very long and I’m sure you want more out of life than just stuff.
Fix: Stop only thinking about what you want today and start thinking about what you want for your future.
Think about things you are wasting your money on now, they may make you happy for a while, but how long will that last?
Instead, think about the long term effect of making smart financial decisions. Those decisions could change you entire financial future for the better.
5. You are trying to keep up with the Joneses
You care more about what people think of you and the nice things you might have right now. Maybe you may have that hot new car or over-sized house in a great neighborhood.
That’s great, but you cannot afford them if you are always broke. You are struggling to make ends meet just to have those nice things, just to impress others.
Fix: Stop trying to impress other people and trying to keep up with them. Are you really happy with that hot new sports car that you are struggling to make payments on every month?
It was nice when you first bought it and maybe your friends envied you for having such nice things.
This only lasts for a little while, but is it really worth putting your financial future at risk it in the end?
6. You are unwilling to sacrifice to save money
You are unwilling to make any kind of sacrifice to set yourself up for a better financial future down the road. You do this even though you know that you have other financial obligations that you should be making a priority.
Fix: If you want a better financial life you are going to have to sacrifice some things now to get to where you want to be.
Don’t you think it would be worth giving up some things that you frivolously spend money on now to have a better life down the road?
Before you are about to purchase something that you want but not necessarily need, ask yourself if having this is really worth putting your future at risk. Chances are it is not.
7. You are broke because you spend more than you make
You have no money because you spend more money than you make. You may be halfway through the week and your paycheck is gone and you have no money and no idea where it went.
Then you need to supplement your income by using credit, which is never a good idea. This will only lead to bigger financial problems in the future if you don’t get it under control.
Fix: Don’t use credit if you can not afford to pay your balance if full. It’s a simple formula that will save you from bigger financial hardships down the road.
If you do not have the money to pay for things now, then you won’t have the money to pay them later. Then you end up spending more on these things because you have to pay high interest charges.
This will eventually snowball and before you know it, you are up to your eyeballs in debt.
8. You’re not focused on your financial goals
You are not focused on where you want to be later in life and do not set financial goals for your future. I may not even cross your mind, even more so if you have no money.
You are just going with the flow and think that’s all you can do without thinking about where you want to be next year or in ten years.
Fix: Take a long hard look at what you want out of life. Do you dream of just having a financially healthy life without constantly having to worry about money?
If you ever want to get to this place in your life, then you need to set goals and work toward them.
I assure, you unless you win the lottery (which is highly unlikely) they won’t just fall in your lap.
Set up realistic goals for where you want to be next year, in five years and what you ultimately want in life.
Make a plan, what are you going to do today to help reach these goals.
9. Procrastinating is keeping you broke
You’re a procrastinator. You keep putting off important financial tasks that need to be dealt with sooner rather than later which ends up costing you more money over time.
It may come in the form of paying bills late which costs you money in late fees and interest. It could also be putting off working on financial goals for your future and what you ultimately want out of life.
Fix: Stop procrastinating!! Take action now and every single day. If you keep putting things off until tomorrow or next week or whenever, then life will pass you by
You’ll wake up years down the road and still be in the same situation you are in now. Life is short, stop putting your life on hold and do something about it.
10. You’re not working hard enough
Having your finances in order just doesn’t fall into your lap. You need to work at it to get where you want to be in life.
Fix: Roll up your sleeves and get to work on fixing your financial situation.
Listen, I know that you don’t want to continually have to think about money. But if you are broke, aren’t you doing it anyway?
You might as well put the effort into working to fix your money issues instead of just trying to survive from week to week.
Make a plan on how to fix your money problems and do whatever it takes to make it happen.
Otherwise, you will never be truly happy. I’m not saying it is going to be easy, but it will pay off in time and you will be so happy you did it.
Creating a happy financial outlook just doesn’t happen, even though it might seem like it does for others. It’s something that you need to make a priority.
Now that you have taken a hard look at some of the reasons that you are always broke and identified which ones are keeping you from living the life you want, it’s time to roll up your sleeves and get to work.
It might not be easy, especially at first. But I promise you it will get better and you will be so happy once you do.