Definitively there is a difference between broke and poor. Poor means you don’t make enough to cover all of your necessities. Broke means you can cover the necessities but never have enough money to save or pay down debt. If the latter describes you, read on.
I know it’s tough to face this situation in life, especially when you still have dreams you’re trying to pursue and goals you want to accomplish. When the bank account reflects hopelessness, that’s a difficult place to be. I’ve certainly been there. There is something you can do. You can improve your circumstances – you must believe that and get to work doing that. Here are some things to do to change your circumstance
Things to do when your broke
1. Change your old spending habits: Your old spending habits helped contribute to your current financial state. You’ll have to change them if you want to improve your finances. Seriously consider how you’ve been spending and make changes so you don’t have to be broke forever.
2. Pretending to have money you don’t: Face the situation, be real, and be honest with yourself and others, if you don’t face this reality, you can’t fix it. Seeing is believing, people tend to believe what they see.If people see the way you spend money, they think you have money, and they expect you to spend.
Though you really don’t have to let people know your financial situation but don’t pretend you have when you don’t.
3. Stop Gambling: Gambling is never really a good idea – it can drive financially well-off people to the poor house. But when you’re already broke, gambling is a terrible idea, especially if you think gambling is going to change your situation. It’s too risky, the odds are against you, and the cost of losing is too great – no matter what form of gambling you choose.
4. Spend your spare time doing something productive: There are so many things you could do during your spare time to make more money—directly or indirectly. For example, you could get a part-time job, learn a money-making hobby, or study to improve your skills so you can demand more money.
5. Ask for Help: Verbalize the reality of the situation with the people in your life. The longer you tell yourself lies and avoid seeking external help, the longer you’re going to continue with problematic behavior… and the longer the situation will persist and grow. Asking for help can include asking your family, friends and colleagues for ideas on how to add value in your career, how to grow revenue, and what to do in order to stand out in the marketplace. Asking for help can also include asking for a financial handout, depending on the kind of financial situation you’re in. Asking for help may require that you swallow your pride and sacrifice the ego. However, over the long term, asking for help can leave you feeling strong, bold and supported while also setting you up to receive abundance and wealth later on.
6. Hanging out with friends: When you are in a broke state, reduce how much you hang out or party with friends,spending time with friends outside your house or their house automatically means you would spend money, which you can’t really afford when you are broke. If you will be paying for drinks or food or not getting free food and drinks, then stay put at your house.
7. Stop Paying bills late: Try not to pay your bills late. They have a way of adding up, finding a way to eat up into the little you have, it is cheaper to pay your bills earlier, than having an accumulated sum which can disrupt your finances.
8. Don’t Spend money on clothes, shoes, purses, accessories, etc. that you don’t need: Chances are, if you already have any of these items, you don’t need any more of them. Resist the temptation to continue shopping, especially for seasonal and trendy items. If you have a shopping problem, take extra steps to keep yourself from spending – like freezing your credit cards or canceling them.
9. Don’t Spending savings or emergency fund unnecessarily: If you are broke and you have a savings or an emergency fund you can fall back on.
Try making the best out of it till you get out of your broke state,only spend your emergency savings on emergency situations and on important things.
Make your savings and emergency savings last for a long period. Remember, spend on what you need, not what you want.
Think your financial situation is going to fix itself? Your money isn’t going to change itself. You can make the situation better by cutting your expenses and looking for ways to increase your income.