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Ever asked yourself why you are always broke in the middle of the month? Do you always find yourself in a situation where you don’t have enough money to save or pay your debt? Being broke is not a good thing and is something you should always avoid in your life.
Basically, being broke means you can cover your necessities, but you don’t have enough cash to save or pay down debt. This is different from being poor. Poor means you are not making enough money to cover all your necessities.
With that in mind, let’s go through some of the reasons that explain why you are broke.
1. You Are Lazy
You will remain broke if you continue to be lazy. There is no way you are going to have enough money if you are lazy. For example, consider when you decided to order food because you are not ready to cook. Or when you send your clothes to the cleaners because you hate doing laundry. These simple acts might appear less costly, but at the end of the day will hurt your savings.
The only solution is to stop being lazy. You pay dearly for your laziness, and it is not worth it and especially when focusing on being fit financially. For example, if you don’t like cooking every day, you can prepare enough food for the week. If doing laundry is not your thing, don’t wait for your clothes to pile up. Just clean them regularly.
Going out with your friends or co-workers is a good idea, but doing that often limits your ability to save and foot all your bills. You will even run out of money fast if living in expensive towns and cities. You don’t have to accept all invitations or go for every date that pops up. Just have a limit, and you will see the difference
Cut back a little. You don’t have to be present all the time. Sometimes it is best to decline some invitations and attend only those you find most relevant.
Consider free events. There is nowhere it is written to socialize your must spend. Free events are an excellent alternative when not ready to spend but enthusiastic about socializing. For example, you can meet the zoo or museum.
3. You Are Not Making Enough Money
There is no limit on how much you can make. Only you can decide if what you are getting is enough or not. So, if you find you can’t make ends meet, that is an indicator you need extra money. Luckily there are many ways today to make extra money even without investing a lot of time or effort.
As said above, there are many ways today to make extra cash. If employed, you can ask your employer for a pay increase. If you have spare time from your busy schedule, you can try online jobs. Today there are many opportunities online you can grab and make some good extra cash. For example, Upwork is a good platform where you can sign up as a freelancer and start making extra cash. Unless you create barriers, today, there are various ways of supplementing your paycheck. You can learn more here about making extra ways of making more cash.
4. You Are A Brand Slave
It is no offense buying the same brand over and over again, but it is prudent to try other brands. Your brand may be superiors to something else, but not always. So, it is a good idea to compare different brands once in a while. You may be surprised there a exist other superior brands that are less costly.
The solution to this is very straight forward, stop accepting to a brand slave while there are other excellent products in the market. But this does not mean you buy any brand. Remember to do your homework well.
5. You Are Penny Wise And Pound Foolish
Consider this; you drive into more than one store because in every store you walk, you save a few pennies. Well, that may seem a good idea, but remember that requires more of your time plus additional cost for the gas. At the end day, you will not have saved anything. In fact, you more likely to overspend.
Always look at the big picture. Well, it is a good idea to visit affordable stores, but this does not mean you spend carelessly in other areas. In other words, have a sound way of how you spend both small and large amounts.
6. You Are Pound Wise And Penny Foolish
This is the opposite of what we just discussed. This time you are more concerned about the large amount more than the small amounts. For example, consider a scenario where you grab candies every morning when getting gas. The cost of those candies may seem small, but in the real sense, that small amount can make you broke.
It is good to note even small amounts add up too. You may not notice small amounts are hurting, but soon or later, you will find things going south. Tracking your budget is one the best way that will help you get out of penny-foolish situations. You may also want to control you crave for less costly things you grab often.
7. You Stick Your Head in The Sand
Not facing reality can make you believe that all is well, which is not the case. For example, if you are debt, let that ring in your mind every day. That is an obligation, and you can’t run away from it.
It feels better when you know the situation you are in. Once you know your situation, it is much easier to make the necessary adjustment and plan how to move forward and actions to take to make things right.
8. You Spend What You Expect To Make
The worst mistake you can make is spending what you don’t have or cannot make. Try your best to live within your means. That little you have when allocated well can help you achieve a lot. The idea of spending what you expect to make will only leave you broke throughout the year.
Consider spending based on what you make right now. Don’t worry about tomorrow too much. As long as you comfortable today, what you think you might make one day soon should not give you sleepless nights.
9. You Are Too Cheap
Are the kind of people the always go for cheap products? Do you always go for used products? There is a high chance you are not saving by doing this.
You have probably heard that cheap is expensive, right? You may think of going for cheap products is actually affordable, but sometimes, it is not. Buying them could be the start of making endless trips to buy more and making countless replacements. The best approach is going for the best option you can afford after researching.
10. You Have No Emergency Fund
An emergency fund will always be your best friend in the event the unexpected happens. Consider when your car needs expensive repairs, your emergency find will come in handy. If you don’t have an emergency fund, you will be forced to take a loan if you have to use your car. This simply means you have another debt to pay.
The benefits of having an emergency fund are many. You may find it challenging to save for an emergency fund but is worth in the event the unexpected happens. So, come up with a plan and target of how much you need to store as an emergency fund and start saving.
11. You Drive Everywhere
Owning a car is a good thing, but it does not mean you drive it everywhere. For example, when visiting a friend who is a few blocks away, you don’t have to drive. Just walk. Walking is healthy, and driving will leave a dent in your gas budget.
There are many alternatives to driving. You can ride a bike, walk, or use public transport. Where possible, avoid driving everywhere.
12. You Love A Good Sale
Good sales will come and go. Good deals are luring, and in most cases, you will find yourself shopping even without a plan. The big question is, will we use what you buy? Price cut lures most people to shopping and forgets the purpose or the need. If you are one of those people, then saving will always be a problem.
Buy only what you need. Buying because of price cut and yet is something you don’t need automatically means you have saved nothing.
13. All or Nothing
Consider this, you are on a diet, and along the way, you fall of the wagon, and you grab a cheeseburger and other goodies. That simple act can result in you going back to your old habit.
This simple scenario is an illustration of what happens to the life of many people today, and maybe you included. Once they flip, instead of seeing how to make things right, they give up, and this often results in more spending.
Messing up is common. No one is perfect, and at some point in life, you will find yourself on the wrong. What is essential is bouncing back after messing up and doing better to avoid a repeat of the same.
14. You Are Disorganized
We pay dearly for been disorganized, and if you want to remain broke for the rest of your life, then make don’t bother about been organized. It is very simple to be organized, yet most of us take forever to change. For example, consider when you have to pay a late fee on your cable bill because you don’t remember where tossed it.
For example, you can have a spot in your room where you place all the mails. Alternatively, set up automatic bill pay through your bank. This makes sure you never have to pay any additional fees. The bottom line, nurture a culture in you of doing things decently; otherwise, your disorderly state will always leave you broke.
Now, which reason do you think best describe your broke status? We have taken you through several reasons that best describe why you are broke plus the solution. Now it is up to you to make the right decision. The good news is that it is possible to stop being broke. Just fix your situation, and all will be well.