There are numerous tips on how to increase your earnings and be a better saver, but what are the things that make you go broke? How can you fix the habits that hinder you from meeting necessities? In this article, we will be discussing 5 easy ways to go broke and how to fix them.
Being broke is different from being poor. Being poor means you don’t have money to cover all or even some of your necessities. Being broke implies a temporary lack of cash flow. You can meet your necessities, but not at that moment. If you continually maintain a lifestyle that keeps you broke, you need to be careful before they make you poor.
Here are 5 easy ways to go broke and how you can fix them
Playing Keep Up
It is not a good idea to play the keep-up game. You want to keep up with those around you. The people with fancy cars, big houses, expensive dressings, vacation pictures on social media, most of them are in debt to keep up with that lifestyle.
Fix: Cut your coat according to your cloth. Have a budget and stick to it. If you can’t afford something now, you should save towards it. Take advantage of the Hyperfund on Crowdyvest, where you can sponsor opportunities towards meeting your financial goals. And the good thing is, you earn good returns while at it.
You Don’t Make Enough
Obvious, isn’t it? Not making enough money is a sure way to stay broke. If you have minimized your living expenses, cut unnecessary spending, and still can’t make ends meet, you need to make more money.
Fix: Have other sources of income. If you work hard at your current job but feel you aren’t getting paid what you are worth, ask for a raise. If that is not possible, get one that pays enough. You may also consider starting a business. The point is, a single source of income is not enough.
Somebody’s gotta win, so why not you, right? Gambling is an activity that ruins your finances if you are not careful. And the bad thing is, you easily get addicted to it. You always think you will win in the next round, till all your money is gone. In a Wall Street Journal analysis, 95 percent of gamblers lose in the end.
Fix: Instead of gambling your fortunes away, why not put your money into good use? You can sponsor opportunities in different sectors of the economy and earn good returns.
No Emergency Fund
What happens when your car needs an expensive repair? Or you have a medical emergency? Do you have an emergency fund you can dip into and take care of any emergencies you have?
Fix: How much do you want to have in your emergency fund? We suggest having at least 3 – 6 months of living expenses. You can start small if you will be consistent. Once you have a goal in mind, you will know then how much you must put in – daily, weekly, or monthly. Take advantage of Crowdyvest Savings Plans, and enjoy good interest rates on your money
You Can’t Say No
You say yes to every financial request. You are the go-to guy and for every financial request that comes your way, you say yes to it. Whenever your colleagues want to hang out, you tag along, without considering your pocket.
Fix: Although saying no can be uncomfortable, it can be for the good of everyone. So, the next time you are unable to afford that hangout, or vacation, or family function, just say no. No is a better financial decision than debt.