What to do when you are broke

Being broke is also incredibly stressful—you’re constantly worried about your bank balance and how you’ll afford necessary purchases. Why add to the stress?


The economy may not be looking up just yet, but either way, no one wants to be flat broke.

It’s not just stressful, but it’s also uncomfy, and counterproductive to achieving any financial goals you set for yourself.

While some things may be beyond your control like if your boss will give you a raise, or the economy will suddenly shoot up in the coming month. However, you can prolong your financial lull through bad financial decisions like spending when you actually should be frugal.

There are purchases you may try to justify and call them ‘needs’ or that your life cannot go on without it, but more often than not, you’ll find that you’re going to be just fine.

There are a few lifestyle adjustments it would be prudent for you to make in order to not end up in a mountain of debt.


HERE  ARE  THINGS  YOU  SHOULDN'T  DO  WHEN  YOU’RE  BROKE. 

Pretending you have more money than you actually do

Don’t try to show that you have money because people will expect a lot from you. You don’t have to let people know the severity of your situation, but also don’t pretend you have the cash to spend when you don’t.

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. It will ruin your finance totally.

 Don’t eat at restaurants

If you compound the amount of money you spend every day eating out, especially lunch time, you’ll realise it sets you back a few hundreds or even thousands that could’ve been saved by either skipping a meal, or carrying a meal to work or wherever you go.

 Paying for cable television and other subscription services

Cable TV is pretty expensive, whether or not you get some shows for free, but you know your favourites are the premium channels. But imagine how much you pay monthly, vis-à- vis your broke state, and take a break from it.

If you are broke, you need to cancel some unnecessary subscriptions that are not helping matters.

Cancel subscriptions on social clubs, gym membership, for the period you are broke. Once you bounce back, then you can re-subscribe.

It won't affect your life if you don't have some things but it can affect your finance and financial goals if you subscribe to some things and you have to pay through your nose. Try to adjust.

 Go partying with friends or hanging out with them

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.

Funny enough, not everyone has money around the same time as the others, and even so with your friends. Yes, FOMO is real, but no money in the wallet is even more real because you can’t go out broke. You need money, even if it’s for one drink or a few bitings, or a ride back home.

If you won't be paying for drinks or food or getting free food and drinks, then stay put at your house.

Find an alternative way to have fun with your friends.


Spend money on non-necessities

One of the hardest things to do, when you’re broke especially, is to rein in your spending and keep it only to the things you need. It’s important, however, to keep your spending to a minimum until you can afford to spend more.

 Paying bills late

This is especially so with utility bills, if you skip paying, they keep accumulating.

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 savings on important things.

Make your savings and emergency savings last for a long period.  Remember, spend on what you need, not what you want.


 Quit your job

If you have a 9-5, keep it, at least until you’re able to stand financially, otherwise when the bills come and you have no other source of income, it may not look good for you.

Pay more than the minimum on your credit cards

Normally, the advice would be to pay more than the minimum so you can pay off your card balances. However, if you’re struggling financially, you can cut back on payments, temporarily, so make the most of your money.

 Spending time doing unproductive things

When you’re broke, it’s not time to bum on the couch watching television. Get thinking of ideas on how you can make some extra money, like using your talent, a hobby, a side gig, or improving your knowledge so you can get better pay.

Sticking to old spending habits

The reason why you are in your broke state is probably because of your bad spending habits and your bad financial decisions.

You’ll need to review and check your financial habits and decisions and find possible ways of improving on them, so you don't find yourself in such financial situation in the future.

Move to a more expensive apartment

Keep your living expenses as low as possible. If your lease at your current residence is nearing its end, talk to your landlord about renewing it at the same rate (or a lower rate if you’ve been a good tenant.)

 Don’t waste

This isn’t the time to waste water, or leave lights on all over the house, or even eating carelessly. It’s time to be wise and frugal – turn off lights when not in use, do your own laundry, and eat only what you can finish.

 Don’t drive when you can walk or take the bus

Cars can be quite costly if you use them on many short trips like going to the market, when you can walk there, or visiting your neighbor. Save the fuel, and use cheaper modes of transport, or just stay home.

 Don’t think the situation will fix itself

Money cannot change itself. You have to change it for it to work for your situation. You can make it better by cutting on expenses, and find ways of increasing your income.

Loan money to someone else, or cosign for them

Having no money for yourself means you also don’t have money for anyone else. Cosigning is included here because cosigning a loan is essentially accepting the responsibility for the monthly payment if the other signer can’t make it.