Are you struggling to make ends meet? Do you feel like you are constantly living paycheck to paycheck? You may be wondering if you are broke.
Many signs can indicate that you are in a difficult financial situation. We will discuss the seven most common signs that someone is broke and what to do about it.
Live above your means
You are broke if you are in debt because you spend more than your income. Maybe it is time you sit down and realize that you need to stop acting like you have money in the bank when you don’t.
It is time for you to start thinking about your finances and take control of your money. The difference between a broke person and a wealthy person is that they live below their means.
When was the last time you tracked your income and expenses? Have you tried budgeting?
There’s a difference between overspending and not having enough money to cover the basics. If you’re not able to make ends meet, it’s time to look into assistance programs.
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Stressing over money
If all you do is stress over money daily, you are broke. Money should not be controlling your mind and your worries.
You have more important things to worry about than money. If this is the case, you need to start looking at your finances and gaining control.
Wealthy people don’t live like this. So why don’t you stress finding ways to earn extra money instead of worrying about how you will pay your bills?
Hang out with ‘broke’ people
When I mention broke people, I mean broke mindset people. If you spend time with negative people who constantly bring you down, you need to get away from them.
If people influence the way, you are spending your money and are one of the reasons you are broke, get away from them.
During our financial journey, and to this day, many people don’t understand or are just being mean about our economic success. We have been called the dreamers. They want to be rich, among other things.
Many have acted envious and cynical toward our financial success instead of being happy for what we have accomplished financially.
We have met and associated more with people who are just supportive, happy, and optimistic about our decisions.
So, which group of individuals do we lean more to? The ‘wealthy’ mindset people, because who wants to hang out with negative people like that?
Many know that with hard work and determination, you can achieve anything.
Why do we want to hear things like ‘you are so lucky’ after all the hard work we have done to take control of our finances?
If that makes me a snob, so be it. Wealthy mindset people associate and do better with wealthy mindset people.
You fantasize about wealth, lottery, and better finances
If you are broke, likely, you are also fantasizing about wealth. Wealthy people don’t daydream about money; they work for it.
You may be wondering how to make more money or get rich quickly. Unfortunately, this isn’t the way to do it!
Wealthy people have a plan and work hard for their money. They don’t just sit around and hope it will fall into their lap.
Do you have a financial plan? If not, it is time to make one. What are your goals? How much money do you need to achieve them?
Start working toward your goals and stop fantasizing about being wealthy. It is time for you to get up and make your own luck.
You don’t have any money in savings.
If you don’t have an emergency fund, you are unprepared for life’s surprises.
Murphy’s law states that anything that can go wrong will go wrong. So, what happens when your car breaks down, and you need to fix it?
Or, you lose your job and don’t have any money to live off for the next few months?
These are just a few examples of what can happen in life. Unfortunately, you will be scrambling to find ways to pay for these unexpected expenses without an emergency fund.
Wealthy people are prepared for anything that comes their way. They have money saved up to handle any situation that comes their way.
You live paycheck to paycheck.
If you are living paycheck to paycheck, you are broke. This is not the way to live your life!
Wealthy people know that this is not a sustainable way to live. So they create a budget and make sure they have enough money to last them until the next paycheck.
If you live paycheck to paycheck, it is time for you to start budgeting your money. First, figure out how much money you need each month and ensure that you don’t spend more.
You have credit card debt.
Credit card debt is one of the biggest reasons people are broke.
Wealthy people don’t have credit card debt because they know it is a waste of money.
They know that they will pay more for what they buy if they use their credit cards.
If you have credit card debt, it is time to start paying off your debts. Figure out a plan to pay off your debts as quickly as possible.
You always seem to be behind on your bills.
If you are always behind on your bills, it is time to start budgeting your money.
Wealthy people know that they need to budget their money to stay on top of their finances.
If you are always behind on your bills, it is time to start making a budget. First, list out all your expenses and figure out how much money you need each month.
Then, make sure you have enough money to cover all your expenses.
You don’t invest in yourself.
If you don’t invest in yourself, you will not be able to improve your financial situation.
Wealthy people know that they need to invest in themselves to improve their finances.
They invest in their education, their health, and their business.
If you want to improve your financial situation, it is time for you to start investing in yourself. Invest in your education and your health.
You are not happy
If you are not happy with your financial situation, it is time to make a change.
Wealthy people are financially successful, but they are also happy with their lives.
They have decided to be wealthy and live their lives to the fullest.
If you are not happy with your financial situation, it is time for you to make a change. But, first, decide to be wealthy and start working toward your goals.
You think of saving money instead of making more money
This is something that finally sunk into me later in life. We can save money, but wouldn’t it be better if we find more ways to make money? If we make more money, we will SAVE more money.
How will we grow our wealth if we settle to save money? Once we have paid off our debt, the next step is to find ways to make more money and use that to our advantage.
You have a ‘do it later’ mentality.
If you know you have a financial situation and need to start taking control of your debt and finances, you are broke, yet you continue to push it for later!
You continue to save it for later and yet later never comes. Nothing will get solved unless you take control of your finances now.
I hope you understand what being wealthy is all about. I always say you can win a million dollars, but you will be broke in no time if you have a broke mindset.
Being wealthy is not about showing off and showing a make-believe lifestyle that you can’t afford. If you want to be wealthy, quit making excuses and start working hard.
Take ownership and responsibility; make it happen. Wealthy people don’t live to impress others; they enjoy their lives.
Have you ever pretended to act ‘wealthy,’ only to be flat broke? What did you learn from it?