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6 Money Habits of Broke People

There is an actual difference between being broke because of how much money you make and being broke because of the decisions you make with the money you make.

The thing is I come across people all the time who make excuses about why they cannot afford to invest in their business or why they are always broke and the same six themes continue to come up.

So if you're feeling like you're always broke... consider whether or not any of these things describe you.

6 Money Habits of Broke People

Rationalizing overspending

I am guilty of this one myself. You have a budget. You put in place how much money to spend, save, and allocate towards bills. But then a new movie you wanted to see comes out and even though you already spent your budget on frivolous things, you convince yourself it'll be ok you'll just save a little less. Then it's it'll be ok you'll just pay rent a couple of days late. Then it's it'll be ok you'll just maneuver this bill or that bill. The cycle continues until you find yourself in debt and struggling to get out of it.

Not keeping track of how much they are spending and on what

Have you ever thought you don't even know where your money went? That's a big red flag. People who are never broke ALWAYS know where their money is going. They know what auto payments are coming out and when. They know exactly how much money they spend eating out. They have their budget and they stick to it and if they ever go above it.. they know exactly in what area they did that.

Paying off important things late

Rent. Credit cards. Utility bills. Not paying these things on time cost you in the long run and will KEEP you broke. Late fees. Cut off fees. Interests. You have to be mindful of what is important and PRIORITIZE over the new outfits, eating out, or whatever.

Having one stream of income

In my personal opinion, THE worst thing you can do. Cause if you lose that source or hours get cut, you're SCREWED. It doesn't matter if you have to get your own business, start affiliate marketing, get a side hustle, WHATEVER. If you have just one stream of income, you're literally asking to be broke.

Making excuses

I bet someone is reading this and even though you low key KNOW one or more of these things describe you, you're defensive and making up every reason in the book why your income is bad so that's why you're broke. You KNOW you're living above your means and making bad purchases for things that won't last, but you're sitting there muttering about how I don't understand this or that and your situation is soooo different. Now some people's income IS entirely too low. And I acknowledge that pay is not where it should be ANYWHERE, but for a lot of people... you know you're broke because of YOUR actions. Stop making excuses because those excuses won't put more money in your account. Accountability and action will.

Not saving

This is not easy, but I often notice how people make it seem impossible when really it's just about prioritizing. If you spend less money on DoorDash and instead put those delivery fees in savings, how much could you save? If you chose to cook at home instead of going out to eat every weekend, how much could you set aside? So often we try and spend our money on frivolous things (often connected to money mindset, mental health, etc.) and we forget that the decision to do that is causing more stress to our lives.

The good news is, all of these things can be changed. Once you recognize it's a problem, make a plan to fix it.

Some quick tips:

  1. Take your spending budget out in cash and don't leave the house with your debit card.

  2. Get an accountability partner

  3. Do a monthly bank account audit on yourself so you can see where your cash is going.

  4. Put your bills on auto-pay (and stick to doing number 1.)

  5. Set up money to be automatically sent to your savings from each check.

  6. Be honest with yourself.

Do any of these sound accurate for you? Would you guys like a post about the habits of rich people? Comment down below!


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