No one would consciously want to be begging or be so broke that meeting some very basic needs becomes a problem. It’s for this reason that one keeps working hard to be better.
The sad bad is that, you may still find yourself broke irrespective of your efforts. You may blame it on so and so, but the biggest problem is you. If you are already fed up with being broke, this is the time you have to make a decision to take control of all your finances.
How To Stop Being Broke: 10 Useful Tips
1. Stop Lending/Giving Money to Other People All the Time:
Whether the person is requesting for a soft loan with a promise of repaying it soon, or the pressure to just help a loved one in a bad situation is too much, you need to stop any form of lending or giving out money. The line between being unwise and kindness is very thin.
If you aren’t keen, you can easily cross it without your knowledge. It’s not wise that you are sacrificing paying some of your basic bills just to help out.
The sad part is that, some of those that promise to pay never fulfill their promise. This means, you will get deeper into debt. It’s this chain of debts and unplanned spending that keep you enslaved to being broke.
2. Avoid Misusing Your Credit Cards:
Credit cards offer a convenient way of making payments. Unfortunately, if you aren’t discipline enough, it can be a great contributor to your being broke.
If you realize that you just can’t follow your budget and anytime you make payments using credit cards, then it’s time to have them frozen in your freezer. Just don’t use them. Try cash payments because they give you an opportunity to clearly visualize how much you have and your actual expenses.
Also, if you have a number of credit cards from different banks and you keep swiping them to make your payments, there are some hidden bills that you could be piling up without your knowledge. Recent research reveals that many people are becoming broke because of spending so much on an array of credit cards.
3. Don’t Compare Yourself to Anyone:
This is an aspect that secretly steals your joy and is one of the main reasons why most people become broke. If you realize that you bought an item just to confirm to a work-mate or friend that you can afford it or to just keep up with them, then you are doing yourself more harm than good.
Don’t concentrate so much about what others think about you and how they spend their money. Just remain focused on how to live within your limits. Your self-worth isn’t determined by your ability to buy a certain item or pay for a given service. Insist on buying quality and durable products without necessarily paying extra because of a fashionable brand name.
4. Don’t Have Someone Complete A Task You Can Do:
For a start, remember that laziness is a direct key to your being broke. It is very convenient to hire someone to shovel your drive way, clean your car/motorcycle, do your laundry among other services. But after they complete these tasks, you have to pay them.
If you are healthy enough to complete these task, then hiring someone else is like throwing your money away. There are duties like cooking, and fixing minor repairs that you can learn from how to do videos and texts. Embrace this and find an easier way to save on the amount you spend every month.
5. Track All Your Expenses:
Make a habit to always account for every penny you spend. You can either do this electronically or with a pen and paper. You can come up with categories like transport, food, housing, clothing, entertainment and utilities among others.
For each category, note the amount you spend on it per day. Get the total by the end of the month. This will help you realize areas where your expenditure is so high and needs some moderation.
Correctly plan for any large expense you make. Subdivide its costs in short periods like monthly or daily. Understand how many hours a day you need to work just to pay for this expense. These minor details will help you make an informed decision.
6. Set Clear Goals:
To stop being broke, you must come up with clearly set goals detailing exactly what you want to achieve, when and how. They should be both short term and long-term goals that are achievable. Come up with a realistic budget that will guide you as you try to fulfill your set financial goals.
7. Start Saving:
This aspect may seem unachievable especially if you are always broke. The term in itself is complex. If you are broke, you need to embrace other ways of saving with the goal of actually keeping some money in the bank for future use.
Buy used items, search for freebies, make changes to your house to help save on your energy bills, sell stuff you aren’t using, compare prices before buying groceries and other items and choose the cheapest option, and avoid buying brands among others. All this ways will help you get extra money that you can save for future use or use to settle a debt and become free.
8. Design A Plan That Will Get You Out Of Debt:
A student loan, credit card debt, and car payment among other debts could the reason you are broke. Come up with ways of paying this debts in the shortest time possible.
Making an extra pay whenever possible and negotiating with the lender to avoid additional expenses from fines or higher interest rates can help you out. Getting out of debt will help you attain the financial freedom you desire.
9. Look For Ways Of Earning More:
This is so clear. You can get a better job or identify an alternative way of making more money. Going online will give you many options but then, choose one that you can handle and deliver to your best. If more money is coming in and is being spent well, your financial freedom is around the corner.
10. Invest Smartly:
Investing will help you protect your assets and earn more money. But if it’s not done well, then it can be the reason for you being broke. If you invest emotionally, you are like someone who is gambling. You may win or lose big. If the latter happens, then you are in bigger problems. Get reliable advice about investing and do your research well to avoid loses.
No one can deny the peace that you will feel the moment you are out of debt and no longer troubled by being broke. Most people that have practiced any of the above methods can attest that they are practical and help you have full control of your finances.
The above methods will work irrespective of the financial situation at hand, age or location. You can do it if you want to. So go for it, and avoid being broke. Do you struggle with finances like we all have? What did you do to change it and make the big difference? Post your thoughts below.