How To Stop Being Broke – 16 Best Practices To Get Better

Last updated on October 12th, 2024 at 04:13 pm

 

Being broke can suck and if wondering how to stop being broke this is right for you. Nothing will change no matter how often you ask yourself this question without making the right moves.

Taking the right moves is working on your money habits, and reading hence making great use of educational resources like finance blogs and books. Unless you don’t look forward to changing your behavior there’s always a solution to whatever comes up in life.

Financial problems can’t just end with just a word like how to stop being broke, you have to look for a way forward and act using the right strategies.

It’s not by choice to be poor year in and year out, all you have to understand is that there’re lots of things that bring about the condition.

You’re tired of being broke and stressed, right? If Paycheck by paycheck is the life you’re living it’s still not the end of it all you can change the story.

Hey, let me expound on these two people broke and poor just in case they confuse you, right? Even though you can pay the monthly bills and other expenses but yet interested in implementing best practices with finances like saving when it’s impossible then you’re broke.

There are times when even my monthly expenses were hard to cover and I couldn’t also afford to save any money at all, this means you’re poor. Wondering whether it’s possible to have financial independence, then you must have to learn financial discipline.

Regretting about the expenditure for last month’s paycheck that’s a waste of time without changing your money habits. You will keep thinking about rent, insurance, emergency, and others which leads to nervousness.

But now you don’t have to worry, reading this article is among the best things that you can do to lead to financial success.

The Story of a Broke Guy

After my studies, I didn’t immediately leave home though I always wanted to be free to live alone. When I got a job, I decided to go start a new life though I couldn’t totally personally support myself.

This is one thing that any early adult would like to have immediately after long days and nights of books under parents’ shelter. Finances it’s something funny among people in a way that it puts you where you belong whenever you get to access it.

Trust me there’re times you remember in life or even now and you’re like it was or it’s a money crisis. What’s funny again is you realize that you’re in a crisis when it’s too late but I guess you understand it’s never too late.

No matter the kinds of blunders I made I had to sit back and accept my past in order to move on. Precisely, in my past saving wasn’t my style, I wasn’t bothered with clearing my loans in time, spending wasn’t an issue to me, and living an expensive lifestyle all throughout.

Though I was earning not that much, I think if had made the right moves, I would have gone through all the bad times.

You might think of the 401k offering at your company but how much do you have there? Just know when you’re broke it’s not about the 401k contribution at your workplace.

I had to think through it because it was too much and reacting to the situation wisely and as quickly as possible was the only solution. How Can I stop being broke became the song with actions that involved reading and consulting with people that have experience in managing finances.

You Can Stop Being Broke by Doing These Things

It’s really great when you take action about how not to be broke anymore, but every step you take has its challenges, and get ready to face them.

The hard times I faced opened my eyes to the path I should take to make things right. Down here are a bunch of things that I discovered in the process that impacted my life and changed the whole story and I am proud of the way forward.

1. Started Reading Books and Blogs

Most people are not good at reading and this was me in the past. Anything that involved reading ever since I left school was boring apart from work issues. I couldn’t read about any money tips along the lines of making money, budgeting, saving, and investing.

I didn’t blame myself for not reading at any one time but am grateful for the lessons I learned from those moments Reading books and blogs can help you learn some of the best strategies you can apply to your finances to take you further using the right money tips.

Most writers make videos and audio that you can also refer to and these are very good at making it easier for you to pick up. There’re many resources that you can read out there or listen to though it’s hard for some to look out for them.

All I know is that unless when you’re not yet hit that much but you’ll have to search for these resources. Here are some of the resources that I used and I even still refer to them up to date and have cut the story short.

The Simple Path to Wealth – The Psychology of Money – Your Money or Your Life – Rich Dad, Poor Dad

2. Working On Money Mindset

You can overcome the money issues you have when you also decide to change your money mindset. The mindset should be among the most critical things that you have to work on in the first place, take an example when you’re looking for what to do when poor but with a loan to pay.

Understand that you have to find challenges that will destruct you from getting there hence you need to keep straight upstairs.

I had a wrong attachment to money which resulted from the negativity I had about money. Actually, I used to think that it was not possible to control money and that things just naturally workout.

Yes, the situation can change but only when you fine-tune your mind to accept reality with money and how to cope with being broke at some point in life until when things get better.

With a pure mindset, your finances are put to good use and you’ll always find ways in which to make your financial health better whenever it’s demanding. I did all I could to close the broke guy’s chapter in the first place by working on my mindset.

But you can also find what works best for you to ensure that you can get the right thinking about your financial health and money.

It doesn’t matter how far you’ve come; it’s about how well you’re prepared to change your mind for the best when it comes to money issues. A good money mindset will make you proud of who you are and money will keep coming your way.

3. Putting Up Financial Targets

Setting targets is another thing that has really taken me this far and still pushing me further. It helped me to be clear with my actions such that I could make the right moves with an edge.

Trust me that when you set a target you get motivated to work in order correctly achieve the set target despite what you might go through.

Planning to buy a house could be your target, saving for your holiday might be your target and maybe saving for an investment could also be your target. I have targets to meet every day, every week, every month, and every year that’s my style now.

4. Track Your Income and Expenditure

There’re two things you have to look at that might be making you broke say income and expenditure You might be earning some good money but when your expenditure is too high

You could be not extravagant but when your income is just too low for you to put something aside after expenses. When you note these two things, you’ll know what needs to be done right, like cutting your expenses and finding ways to increase your income.

Even though you increase your income but then you still remain extravagant you’ll stay broke

But if you increase your income and still spend within the basic, not unnecessarily life will change. I used to be that person who couldn’t think of putting an income aside and I could just spend carelessly.

And when I realized that I am a big spender and wanted to change my status, I had to change my behavior to secure tomorrow.

Tracking income and expenditure is very important for a broke guy to make things right. I had to check my spending patterns but later made sure that I also increase my income streams.

5. Becoming Frugal

You’ll hate me for this if you’re not the kind of person that can give up on the so-called good things that might be taking your money.

When you ask me if you want to stop being broke starting today, I can’t skip telling you to adopt a frugal lifestyle. I don’t know for how long you can contain it but it’s worth your time and the longer you do it the better.

It really worked out for me for some good time though today I am more confident with my money than I used to be and not that frugal now.

I had to extremely reduce my expenses and worked everything on a budget. When I told myself that I am tired of being broke, being frugal had to be among the things that I had to adopt.

Asking me what I did? With shopping, I had most times to use cash back apps in order to get some money back.

You can do this with Ibotta, Rakuten, and more free apps, I had to make sure that I bought cheap used items, and also couponing played cool to me.

6. Don’t Compare Yourself with Other People

I always wanted to be like those I used to admire or compete with despite what I had in my bank account. And someone fresh out of school what do you think he or she earns compared to those that have worked for a long time?

Trust me you and your friends can’t have the same income sources and that is why you’ll have different income bank balances. It’s not a must that you spend money on travel, new cars, décor, and other because your friends are spending.

What I know is that when you continuously keep up with the Joneses being broke is a must no doubt about that. There is a time when I ended up in debt because I wanted to maintain a certain lifestyle for some time.

I had to live an expensive lifestyle because I got new friends that were leaving big and spending, so I had to. Don’t criticize me here many are doing it and it’s my past.

When the truth opened up to me a lot came into my head and doing away with this practice was the only solution. Accepting the fact that you’re not living real can be hard in the start which is fine but as time goes on, you’ll get used and you won’t mind what others think.

You don’t have to show anyone that you’re living fine yet you’re not – actually who do you think cares when you end debts?

Wanting to get on the same page with others or impress yet you’re not at that level will keep you broke. Save to live like no one else today and live like no one else tomorrow.

7. Stop Blaming Yourself

Even though you’re broke you don’t have to criticize yourself about everything that goes wrong concerning money.

This makes you lose trust in your actions towards money and it will keep you with a broke mindset that has made many people fail. You won’t have time to appreciate the lessons that you have learned from the mistakes you made.

Achieving success is not a straightforward walk through it’s full of ups and downs and the mistakes we make are part of the story. Blaming yourself and your family for being broke it’s a waste of time you better act right and accept your actions then learn to deal with them.

8. Stop Lending Money

Lending money isn’t a bad idea if those you’re lending to will be good to you and pay back. But what’s frustrating is that they don’t want to pay back in time and some may not at all payback, then what’s the reason for lending yet you end up creating enemies?

If you don’t have enough money and you’re lending the little you have with nothing aside and with the challenges involved then expect to live broke. Just in case you’re reading this article with a friend who normally gets some small dime from you he or she will tell you this is garbage.

And you can also believe it’s true but trust me you’ll look for these lines one day and I will be waiting for your concern. I was good at lending but I had to step back for some time till when I felt it was right for me to do so with the right lending skills.

9. Developing A Strategic Pay Off of Debts

You might be still broke because you’re failing to manage the debts that you have with the interest on them that is accumulating.

When you have much debt, you won’t be able to save for your future, you can only get some breathing space when you service the debts strategically. Having a plan in mind for how to pay off debt can save you from being broke and get better with your finances.

But the plan towards working on debts relies on the goals that one has, the amount of debt to fix, and how much one pays as agreed.

Some people prefer clearing debts starting with the smallest and then to the largest and this is healthy and motivating, this is known as the debt snowball.

You can also organize to make minimum payments on different sources of debt but then the left amount can be used to clear debts with huge rates of interest, this is known debt avalanche

Rolling several debts into one can lower one’s interest rate whereby one makes a single payment and this makes the payment process simpler, this is known as debt consolidation.

If you need the best rates that can work for you, services such as credible can make a difference. Choose the best that suits your type depending on your goals, debt to fix, and the amount you can pay, it can help you get out of being broke.

10. Set Up Financial Goals

What would be your financial goal when you’re living broke? I don’t know why you’re interested in money blogs though you’re broke.

Different people have different reasons as to why they do certain things, and that’s why I decide sometimes to speak my mind. When setting financial goals you have the short-term, mid-term, and long-term goals that you want to achieve.

By understanding that then you have to position yourself right in terms of time length and strategy. Setting goals within a specific time frame can really motivate you and stick to your goals which then makes the goals achievable.

And of course, your goals are based on what you’re going through and what to be done in order to successfully realize them. Also, how much you apply yourself to the set goals will greatly impact your achievements.

And one other thing that I always never missed doing was appreciating my effort for whatever achievement that I made. You have to keep focused in order to stay in line with your short-term, mid-term, and long-term goals but it all begins with you.

11. Investing

The big question here would be if am broke then what will I invest? You don’t need to earn big to start investing. And with investing it’s not a get-rich-quick scheme but it’s worth the time since your investment keeps compounding over time.

Most people who invest develop healthy financial behaviors because one starts investing for as low as $5 which keeps multiplying. This requires more financial disciple in the long run whereby you have to control your money psychology.

For those who can afford to invest big amounts the returns come within a short period but when you’re broke and your investments are small it takes some time to get good returns.

Think right when it comes to investment, there’re many different ways and different platforms that you can invest with like M1finance, Ally invest, and stash. And again, put in mind that when you start investing, you’re not immediately going to get rich.

12. Get Out of Comfort Zone

If you’re to stop being broke you have to learn to live through the hard times. This is hard to catch up with where one hates to go the hard way with life though it’s costly to live in a comfort zone

Take an example where one can make some coffee for himself from home but always pays a monthly subscription to be delivered the coffee at home. You don’t lose anything making your own and this can save you a lot of money that you can channel somewhere else.

You can choose to still be broke by living in your comfort zone but still, you can choose to get out of your comfort zone and forget the broke guy.

13. Work On Side Hustles

You want to make more money, right? Then you have to work here and there such that you can make money your friend.

Money comes to you when you want it and only stays when you can keep it that’s putting it to good use. By managing finances, you’ll have money with you to save and invest that’s the real truth with money.

With enough money from side hustles, you’ll be able to cover more of your expenses and this will cool down the pressure you have.

The good thing with a side hustle is you can keep doing your 9-5 job and at the same time keep earning from the side. That’s cool, right?

14. 50/30/20 Rule

I know some people don’t like things related to budgeting they think it’s a waste of time, this rule shows how you can effectively budget your income.

It tells us that you can fix 50% of the net income to your needs, 30% to your wants, and 20% kept as savings. Simple as it is but some people lose out just because of this simple mathematics.

The needs are things that you can’t do without like insurance, rent, and medical. The wants are those that you live without say Netflix, gym, and swimming.

And this is not meant to stress you but it’s an estimate of how you can manage your income and you can do it your way. If you hate the broke guy then first put yourself an income aside first into the savings account before anything else.

15. Mind Your Friends

Not everyone that gets close to you should be your friend in any way and that is why you have to very well know who they really are.

When you associate with the wrong people that have a broke mindset with a broke guy’s behavior you also turn out to be like them. You won’t avoid them all but you have to know where they belong in your life since we’re not angels.

Involve yourself with people that are developmental in their nature and these are the people that will advise you when you need financial help. Stay away from friends that have unhealthy financial practices like gambling if you’re to avoid being broke.

You’re most likely to adopt their behavior when you don’t distance yourself from such people and you’ll stay broke with nothing to save.

16. Get More Skills

If your income is high and expenditure is low, you’re not broke. But when your expenditure and incomes are equal, you’re broke since you can’t save.

And when I say I don’t want to be broke anymore, then when I make money I must budget, save and invest. So, make sure you learn the skills of making money, budgeting, saving, and investing it will improve your financial health.

Those with skills that people need earn money from all directions and this is what you’re looking for. If you have the skills, you have the money, and when you lack the skills you lack the money, simple.

Mind your skills before you think about the money, it will look for you when you have the catalyst. If the skill you have isn’t yielding that much you better improve it or just get a new skill that sells today to help you kick the hell out of your life.

I like writing and reading. But you- what do you like most or what skill do you have?

The End

If you’re broke and you’re reading make-money blogs like this one you’ve started moving the journey. Do you want to avoid being broke? These are the things you have to do, nothing else better than this apart from taking action after getting the skills.