Why You’re Always Broke - And How To Fix It


Living paycheck to paycheck is no way to live.

But the sad truth is, many of us do. It’s an easy trap to fall into. And once you’re sucked into it, over time it can start to feel like there’s no way out.

However, I’m here to tell you that there is in fact a way out.

In this article, I’m going to go through all the reasons that add up to you being constantly broke, or with next to nothing in your bank account.

Because it’s only from that point that you can turn things around and know what kind of action is required.

Then, I’m gonna go through a few different ways you can easily get more money coming your way.

By the end of the article, you will have a clearer idea of where you’re going wrong, and you can have an idea or two of how you can get yourself out of your situation.

And without further ado, let’s get straight to it.

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Table Of Contents

money plant

What’s Making You Broke?

There could be one reason why you’re always broke, or it could be down to a combination of different factors.

Unpaid Debts

The longer you’re in each of your debts affects how much interest you have to pay on them.

Sure, many of your debts, such as credit card debts, may require a very small minimum payment per month. But if you rely too heavily on your credit cards, paying only the bare minimum, your credit card debt can start to rocket.

Paying more than the minimum can help to bring the figure down, but ideally you should only use credit cards for emergencies, with a view to pay off all the debt ASAP.


Keeping Up With The Jones’

Expensive items are status symbols. And this gets people looking for big name labels, in clothes, perfumes, your ride or just about anything else.

But people who see your worth beyond your money are worth their weight in gold. No one worth knowing really cares how much money you have, only how you treat them.

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Overspending Is A Way Of Life For You

Once your spending matches your income, it’s pretty easy for that spending to start to stretch beyond your actual monthly income.

With tools (and traps) like credit cards, store cards, Klarna, overdraft allowance, paying in installment schemes, buying things on finance, and so on, it’s too easy to start spending more money than you actually have coming in.

And the way to prevent that is coming up next.

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Not Budgeting Or Planning Ahead

If you’re always broke, you need to start paying more attention to what money is coming in and how you can spread that money across your bills.

That way, you can determine how much money you have leftover for other essentials such as groceries, toiletries, and more.

Once you have a budget in place, you can then be in a position to start saving a set amount of money every month, and you can put it into an Instant Access savings account.

And then, you’ll have money that you can get your hands on for unexpected (or expected) expenses, without having to resort to credit cards, loans, or overdrafts and the like.

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Money Making Ideas

Here follows a range of ideas of how you might be able to improve your financial situation and get some money flowing in.

Admittedly, some of these ideas are more profitable than others, and some might be easier for some people than others.

You’ve probably already thought of babysitting and dog walking, which require no prior experience, but here are some other ideas for you.

(These money making ideas aren’t listed in any particular order.)

Consolidate Your Debts

Taking out a loan to pay off your debts may sound counterintuitive. But it can work.

You can take out a loan that covers several of your debts, leaves you with some spending money to enjoy, and brings down your monthly outgoings, so that you can spend money on things you were previously unable to afford, or would have stuck on a credit card.

Sell On Things You Don’t Use Anymore

Over time, we buy things, and eventually we get bored with them. You can get rid of things that no longer make you happy, and sell them for profit. It doesn’t have to be collectors items, people are happy to buy such items as clothes and bags, and there are loads of different apps around that you can use to sell your things on.

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Be A Driver

Uber Drivers are almost always in high demand, especially since they started doing takeout deliveries. And with more and more people ordering goods and groceries online, there’s also great demand for delivery drivers.

Be A Mystery Shopper

A mystery shopper is someone who gets paid to go to spas, stores, restaurants, hotels, and more, and all that’s asked of them in return is to write a truthful review of their experience. It’s both easy and fun.

piggy bank and coins

Get Creative

There’s never been a better time for a creative side hustle:

You can sell your artwork, whether done on computer or done by hand

You can start a podcast or YouTube channel on your favorite topic and get sponsors

You can write a helpful set of instructions or guide on how to something that you can sell as an e-book

You can take a class, teaching others something you already know, like dance, yoga, knitting, tutoring math, or whatever else you might have to offer

You can create an online course - all you’ll need is a camera, audio and some other software on your laptop, so you can present your knowledge, which you can then sell on Udemy or other online course platforms

In Conclusion

To reiterate what was said earlier, there could be any number of reasons why you might be broke. But once you start budgeting your money, and planning to build your money rather than spend too much of it, who knows how much money you will have!

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Frequently Asked Questions

List your monthly income, track your expenses, categorize them, set spending limits for each category, and adjust your spending habits accordingly.

Explore side hustles, freelance work, investing, or upskilling to qualify for higher-paying jobs.

Prioritize high-interest debts, make a repayment plan, consider debt consolidation or refinancing, and avoid adding new debt.

Unplug unused electronics, switch to energy-efficient appliances, use public transportation or carpool, and shop for better insurance rates.

Use budgeting apps, spreadsheets, or pen and paper to record and categorize your daily expenses. Review and adjust your spending habits regularly.

If you're struggling to manage your finances independently or have complex financial issues, consider consulting a financial planner or credit counselor for personalized advice.

Overspending, not having a budget, living beyond one's means, high debt, lack of financial goals, not having an emergency fund, and not tracking expenses.

Create a shopping list, compare prices, use discounts and coupons, avoid impulse purchases, and cut unnecessary expenses.

An emergency fund is a financial safety net that helps you cover unexpected expenses like medical bills, car repairs, or job loss, without going into debt.

Financial goals provide direction, motivation, and a sense of control over your finances. They help you prioritize spending and make informed financial decisions.
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Why You’re Always Broke - And How To Fix It
James Wilson

After graduating from McCombs School of Business in Texas, James joined ThePayStubs as a CPA to make sure the numbers we provide our clients are correct. Read More

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