Being broke sucks! Not having the money you need to purchase the things that you need or want can be frustrating and overwhelming.
The good news is, you can make changes that can get you out of this bad financial situation.
If you are broke and living paycheck to paycheck or direct deposit to direct deposit there are things you should definitely be doing to change your financial situation.
In this blog post, discover 6 things you should be doing if you’re broke.
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(1) Changing the Way You Think
This might sound odd but one of the first things you should be doing if you’re broke is changing the way you think.
Chances are you have been struggling with your finances for quite some time. Your problem could stem from how you think about money and your finances.
The way you think about money shapes your emotions and your actions. Changing the way you think will help you break bad money habits and help you make good money decisions.
(2) Evaluating Your Situation
Taking a good honest look at your situation is essential to changing your financial situation. There are multiple reasons you can be broke during periods of your life.
Are you spending too much money?
Are you unemployed?
Do you have issues with saving money?
All of these can contribute to being broke. Take the time to evaluate your financial situation.
Look at your situation objectively and without emotion and determine the areas of your finances that require a change.
(3) Reducing Expenses
Reducing your expenses will go a long way towards not being broke.
Tracking your spending and making a budget is one of the first steps to reducing your expenses. It’s hard to spend less if you don’t know where your money is going.
Once you have established your budget you can investigate ways to reduce your expenses and stretch your budget.
Believe it or not, there are ways to save money on groceries, save on items for your kids, and just about all of the necessities of life.
With a little planning, you will be managing your personal finances like a pro.
Download a copy of our free Monthly 50/30/20 Budget Worksheet. It’s a free excel spreadsheet to help you create and maintain your budget.
(4) Saving Money
Now you might be thinking, “how can I save money if I’m broke?”
Saving money when you’re broke is just a matter of making saving a priority. It is not easy, however, it is an essential element to your personal finance strategy.
Putting aside even a small amount each paycheck will make a very big difference.
Saving money and creating an emergency fund is one of the first steps you should take when putting together your financial plans. Your emergency fund will ensure that you have funds available when unexpected expenses arise. It will also protect you from going into debt.
(5) Making Extra Money
If you are broke you should definitely be looking for ways to make extra money.
Depending on your situation this might be by finding a job, working for a promotion on your current job or starting a side hustle that will help you add additional income.
There are multiple ways to make extra money online. Some yield immediate returns like taking online surveys, testing websites, or teaching English online.
There are other methods that require more time and effort, however, they yield much bigger results. Here are a few ways to make extra money without getting a traditional job.
- Starting a Blog
- Selling on Etsy
- Becoming a Virtual Assistant
- Starting a YouTube Channel
- Creating a Drop Shipping Business
(6) Spending Wisely
Learning to spend wisely will ensure that you make the most of your income. It will help you make the most of your budget and help with saving money.
Comparison shopping, using cashback apps, and shopping online
Here are a few articles that will teach you how to spend wisely when you’re broke.
- 50 Frugal Foods to Buy When You’re Broke
- 10 Items You Should Never Buy at the Dollar Store
Taking Action
The hardest step is always the first step.
If you are broke it is imperative that just get started. It might seem impossible at first but you can change your financial situation.
Living broke will be a thing of the past if you simply take action.
Leave a comment and share your best practices for staying financially healthy.
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