Reasons You Are Broke and How to Avoid These Situations

You don’t make enough money. The economy is awful. Your boss is a jerk. You can’t get a better job right now because no one is hiring. Blah, blah, blah. That’s what the rest of the world hears when you try and place blame for the fact that you are broke on anything and everyone but yourself. The fact of the matter is you are broke because you choose to be. Yes, that’s right. You choose to be broke. Before you start cursing me and calling me ignorant, hear me out.

Yes, the economy does suck. No, you probably do think you don’t make enough. Yes, your boss may actually be a jerk. The economy and job market may have negatively affected you, but if you hadn’t spent the many working years before the economy tanked choosing to be broke, you wouldn’t still be broke today. Here are the reasons why you are still broke, and why you can’t blame anyone else for your own problems.

No Savings

The biggest mistake you can possibly make is putting your entire paycheck into your checking account. Right there for you to spend, you need to get it out and put it in savings. If it isn’t easily accessible, you won’t spend it.

You Spend Unwisely

If you have the money to save, pay your bills, and spend, then by all means spend away. If you don’t have the money to save, then stop spending on useless stuff. No, taking a great trip to Vegas with your friends if you can’t afford to put 20 percent of your monthly income in savings is not a wise investment. It’s not worthwhile. Spending money to pay your mortgage is worthwhile. If you can’t afford it and you can live without it, just don’t buy it.

You Have No Financial Goals

You are far more likely to save when you have a reason to save. If you consider saving something you’re supposed to do, you are more likely to use that money needlessly. Make a financial goal. Make it a goal to buy your next car with cash or to retire at 50. That will motivate you.