They say money can’t buy you everything. But there’s no denying the fact that living with little or no money isn’t too good either. The one thing that can scare anyone out of their wits is the thought of waking up one morning to realize that they have zero savings in their bank account.
Being broke shouldn’t be mistaken as the state of being poor. If you are able to meet all your expenses but are left with nothing to save, you’re certainly broke and this is something that should be a matter of concern in the long run. Irrespective of the lifestyle that you enjoy, you want to be in a position where you are financially safe against all the future uncertainties.
Here are a few ways that can come to your rescue if you are tired of being broke and want to get out of the situation as soon as possible:
1. Realization of the problem: In order to understand the depth of the problem, you will first have to accept that there exists a problem. It often looks fine not to have any savings until a real monetary issue arrives making you realize that you are actually broke.
It’s always good to have a look at your financial situation at the end of the month to decide whether you have been handling your money right. Once you’re sick of being broke all the time, you will come to realize the depth of the problem and will find yourself looking for some real change to get rid of the situation.
2. Figure out the reason for being broke: Compare the amount written on your paycheck to your monthly bills and determine if you are left with any money at the end of the month.
If you are earning just enough to cover all your expenses, your income is the reason that you are broke. At the same time, you don’t have to be making six figures in order to be financially secure. Sometimes, it’s the spending habits that form the main reason for someone to be broke.
3. Look for ways to earn more: You might choose to wait until you get yourself a promotion at the job or you might want to look for some ways to earn more if your income is the reason that you are broke. Keep looking for a better paying job opportunity or start a side hustle to make some extra money.
4. Try living below your means: Controlling your spending habits can go a long way in keeping yourself from being broke irrespective of the amount of money that you are earning. It’s easy to indulge in careless spending specially during your 20’s but these harmful spending habits can majorly impact your financial condition later in life. You don’t need to live cheap in order to save money but simply cutting back on your current expenses can make a significant amount of difference.
Here are a few articles that can help you save money in your day-to-day life:
- How to control impulse spending (in order to meet your financial goals)
5. Create a Budget: Budgeting is yet another way to allocate your monthly income to your savings and expenses in a certain proportion. A successful budget is one where you are able to stick to the planned proportion of the expenses besides being able to save enough to repay your debt and for the future. An ideal budget should be flexible enough to allow for any change in income or financial situation.
6. Determine your financial goals and plan for it: You won’t feel motivated to save money until you have a financial goal in mind. Financial goals – be it a house, a car, debt repayment, children’s education, or a dream business – would become your motivation to change your spending habits or earn more money and you will find yourself in a rather comfortable financial position once you make the necessary changes.
7. Stop spending money on impulse: Impulse buying is one of the major reasons that people find themselves broke at the end of the month. It’s easy to spend money on things that are appealing to the eyes even if you don’t really need them. You step inside a store to buy yourself a pair of shoes but a very trendy dress catches your attention and you just can’t resist the temptation to own it. Impulse spending habits need to be controlled or they can significantly impact how you approach your finances.
8. Organize your finances: Being a little organized when it comes to your finances can help you be a lot better in managing them. Determine what it is that needs to be taken care of first when it comes to your financial needs. Paying down the debt should always be your number one priority even if it means that you have to make certain adjustments in your lifestyle. Keep your bills in one place and keep paying a look at your budget at least once in a month.
You must understand that being broke isn’t a permanent situation and you won’t have to stress about it forever. All you need to do is make certain changes in how you approach your finances and put in some efforts to keep yourself from being financially broke.