We all get stuck inside this rat race called life. Going around and around on our wheel like a caged hamster. We are moving forward, but never progressing. Every person reading this wants to be rich, to have wealth, to travel, to have big cars and live in posh homes, but the sad truth is that most of you are too broke to even start thinking about getting rich.
If you’re sick of being broke, it’s time to take control of your finances! Whether you need to work on your spending habits, learn how to save, or even find ways to earn more money, you can find a way to stop being broke. Here’s how to break the cycle.
1. Get in the Right Mindset
Putting yourself in the right mindset is the start to getting your financial situation out of this problem. If you want to get yourself out of this problem, you need to get specific about what you want to accomplish, which means setting goals for yourself. Think exactly about what you want your finances to look like and what you can do to achieve those goals. Set short-term financial goals alongside your long-term goals to keep you motivated and to give you a sense of accomplishment.
Also, if you’re spending beyond your means because you feel that you need to keep up with your friends or show how extravagant you can get, then you’re not doing yourself any good. Stop worrying about what they think and start living within your means. Change your attitude on consumer goods. Focus more on your needs and not your wants. Choose quality products that will last longer. Sometimes, keeping an eye on your expenses will help you understand exactly where all your money is going. Keep careful track of every dime you spend. With just a pen or paper, you’re good to go. Be sure to account for everything. This simple habit will help you spend more wisely.
2. Make a Plan for Getting Out of Debt
If you are broke because you owe a lot of people, then think about what you can do to pay off these debts faster. Make a few extra payments each week to help you pay off your debts much faster, although, these payments might make your budget even tighter in the immediate future, it will pay off in the long run because you will be debt-free much sooner.
3. Start Saving
While this might seem impossible if you are always broke, planning for the future will help you get out of this cycle. Start small by just putting away 10% – 15% in an emergency fund either weekly or monthly. Have you ever thought about keeping new currencies that you get daily? It works well too trust me. You can also make saving money automatic by setting up automatic withdrawals from your paycheck or your checking account so you never have to think about it. Never empty your savings for anything irrelevant.
4. Know your Type of Money Problem
We have two common types of money problem. You can either have a spending problem, an income problem, or even both. To stop a spending problem, work on your spending habits; try spending less than you earn. To stop an income problem, you have to increase how much money you earn. Try getting a better job or even start a business. Start by updating your resume, searching for listings online and networking with other professionals in your field.
Don’t forget to look for advancement opportunities within your company. If you love your job and you feel that you deserve to make more money, ask your boss for a raise. If you don’t have the skills to land the kind of job you really want, it may be worth it to go back to school. This would help increase your bottom line. Determine what kind of money problem you have and then take steps to remedy it.
5. Stop Lending Money to People All the Time
So a friend texts you that they’re in need of money urgently and that they would refund you a week after, then you gladly help them. A week passes, then two weeks. What happens after you ask them to refund the money you gladly sent them? They take you round and round and you end up letting them go without repaying you, don’t you? You need to understand that there’s a very thin line between being kind and not being wise. You are not a bank. Unless you have more than 3 investments, you have to be very strict about where your money is going. You should only loan out money when you have some extra cash that is just lying around without any use.
6. Don’t Hire People to Do Things You Can Do Yourself
From doing laundry to dishes to mowing the lawn, you don’t have to hire anyone to do the work for you. Why not save the money you’d pay the people you would normally hire to do the work instead? Being lazy will only make you broke. If you’re physically capable of doing these things yourself, then don’t throw money away. Do them yourself. In a case where you’re not very handy, try to teach yourself to do more around the house. If you need a simple repair done, you may be able to watch a video online or take a class at a local home improvement store to learn how to do it yourself.
7. Spend Less on Food and Entertainment
Look for less expensive ways to have fun. Learn to cook at home and keep the fridge well stocked with ingredients for things that you know you can cook from scratch when you come home late and don’t have much time to whip up a grand meal. Instead of going out to eat with friends, try inviting them over. Always look for deals if you plan on going out, a lot of attractions offer discounts if you purchase your tickets online.
8. Do Something Else on the Side
Using your skills to provide freelance or consulting services or even getting a part-time job can be very helpful. You can earn some extra cash by doing side jobs, for example, cleaning houses, walking dogs for people. Try selling handmade items online or at local stores. If you enjoy writing, you might be able to make money blogging. Search for short-term gigs like focus groups, paid surveys, or mystery shopping.
9. Sell Stuff You Don’t Need
Look around for at least a few possessions that you no longer need or want, and turn those items into extra cash by selling them to people who do want them. If you have lots of them, try having a yard sale. For more valuable items, you can try selling them on eBay or Amazon.
10. Don’t be Afraid to Ask for Help
Your income potential is only limited by your mindset and your skills. You really can earn as much money as you want! I truly believe that. Know what your strengths and weaknesses are. Be confident in your abilities and find help for the areas you’re not so confident in. It’s not bad to have confidence in your career and to be good at your job. Be diligent, stay focused and make sacrifices. Don’t take too many holidays or vacation days. Work your butt off. Be dependable and honest. In the long run, you’ll be glad you did.
11. Be Prepared to Take Action
The amount of effort and thought you put into changing is the amount of result you will see. In other words, if you don’t apply yourself to changing your financial habits and only put in a little amount of effort, the results you’ll see will also be little. Perhaps that’s what you’ve experienced in the past after trying to change your finances, and failing. This time it has to be different! You have to change your mindset to be ready for a radical change and not care what other people think. This is the only way to see the drastic changes you’re hoping for and to stop the cycle of being broke. However, this kind of change takes courage. Essentially, you have to be a phenomenal person living in a nominal world. And that’s a tough thing to do.
It’s time to stop being average and embrace that fact that you can change and you will. Yes, it’s painful. It takes effort and sacrifice, but it’s worth it. You won’t change until you’re sick of being broke enough to start taking action. When you have considered all these things, just know that you will be on the way to financial freedom and wealth. Have you had enough? Share your thoughts with me in the comment below.