The term “broke” means having little or no money to take care of your bills. Being broke is not the same as being poor. When you are broke, it is a temporary state that you can bounce back from at any time. However, it will help if you can discover the reasons why you are always broke and how to fix them. I believe in holding oneself accountable for whatever goes on in their life. What am I saying? We are responsible for whatever situation we find ourselves in, and it is our responsibility to look after ourselves. It is best to know that no one will do this for you!
Here are the primary reasons why you are still broke.
You can’t say no
You can’t always say yes to everything. It will help if you learn to say no when the need arises. If you don’t understand this now, it will become a bad habit that will be difficult to fix later. Say no to things that don’t matter to you. For instance, when your friend who sells bags at your workplace is trying to force the latest design on you, say no if you don’t have a budget for it.
You don’t learn how to set goals
Goal setting is essential in our daily lives. If you don’t have a set goal, it will be difficult for you to track your activities. It’s completely okay to have long and short-term goals. This will help you plan your day. People fail to realise that the small step we take daily is what usually gives us the result we desire.
You hang out with the wrong people
In everything we do, we need to sit down and choose our friends with wisdom. Whether you like it or not, your friend’s attitude will positively or negatively influence yours. A common saying says, “Bad company corrupts good manners”. It helps if your friends have similar interests with you. It will be easy for them to respect your decision whenever you hang out with them.
You play the blame game
When something goes wrong, avoid blaming other people for your mistakes or problems. Have you ever seen a situation where endless complaints solve a problem? Finding a solution to your problem is more profitable. For instance, if what you earn in your current job isn’t enough to foot your bills, instead of complaining, you can look for other means to diversify your income or start a side hustle.
You don’t have the right money mindset
To pay off debt, save or invest, you need the right financial mindset. The kind of mindset you have will go a long way to determine the state of your finances. If you always have a negative mindset, that perspective will keep you from finding ways to succeed. From experience, I can tell you that the way you think will automatically translate to how you act.
You spend more than you earn
This is one of the primary reasons why people go broke. People tend to spend more than they earn for some reason best known to them. But what I understand is that you will continue to stay broke if you spend more than you earn. This is why you need to live on a budget. Living on a budget will prevent you from taking debt. When you keep to the budget you set, you will never run out of money. Take your time and find the best budgeting method that works well. Don’t be surprised; what works for your neighbour may not what for you.
You lack self-discipline
When it comes to financial success, self-discipline has a significant role to play. People find it challenging to keep to goals and the budget they set. To help you stay disciplined, you need to know when you need something and when you want it. There is a vast difference between want and need. To easily differentiate between the two, you need to know your “why” before making any purchase decision. Always ask yourself, why do I need this item? What will it do for me? Can I do without it?
You don’t save and invest
You may want to ask, how do you invest when you are broke? It will please me to let you know that you can save and invest from the little you have at the moment. It is best if you avoid making excuses. That great and comfortable life you want to live will not come by magically; you have to create it. There are different ways in which you can invest your money. But you can always start by saving.
You compete with everyone
When you compete with everyone, you spend more money to impress people by buying things you don’t need. You will find yourself buying expensive items to keep up with an appearance you want people to see you adopt. The truth is that those people you are working hard to impress may not even care about you.
The fear of failure
This is one of the biggest reasons why you are broke. Many people are stuck at one point because they are scared of trying out new things. The fear will keep holding your financial success till you take the bold step to take action. Start by assessing your present financial status and take things one step at a time, don’t let fear keep you stuck.
Building wealth isn’t a game of luck. What you need is the right mindset, planning and execution of ideas. However, regardless of what you earn presently, I would like you to know that you can always grow your finances to a greater height. You also can achieve incredible financial success by changing your habits.
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Recommended books for further reading:
- Influence; the psychology of persuasion by Robert B. Cialdini
- Mindset – Updated Edition: Changing The Way You think To Fulfil Your Potential
- Atomic Habits: The life-changing
- The hard thing about hard things by Ben Horowitz
- You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life