How to stop being broke

Video: What To Do When You’re Broke - Stop Being Broke

Content

Steps
Part 1 of 6: Value Yourself More
Part 2 of 6: Set aside your reserve
Part 3 of 6: Recognizing socially imposed deprivation
Part 4 of 6: The Credit Card Carousel Crash
Part 5 of 6: Avoid Exhausting Shopping
Part 6 of 6: Don't waste anything
Tips
Warnings
What do you need

Money flowing through your fingers? Do you feel like you are working like a dog, day in and day out, and have nothing to testify to it? If so, then you probably got into the habit of letting money rule over you, rather than the other way around. Taking control of your financial situation is more than money; it is also a matter of self-esteem and finding harmony in life. In order to stop being broke, it's important to reconsider your priorities and learn to take better care of yourself. Here's how to do it.

Steps

Part 1 of 6: Value Yourself More

1 Start with yourself. Constantly being in financial trouble means not caring for yourself as much as you could. If you do not value yourself, it is extremely difficult to value money. The choices you make about spending, saving, or borrowing money affect your ability to live within your means or beyond your means. Considering the following points, it will help you get on the path of financial stability:
- Money, or spending money, is not equal to your personal worth. Money doesn't define who you are, it doesn't empower you. Real strength is personal and comes from within; using money to realize your own power is a way of seeking external confirmation, not accepting your inner wealth.
- Suze Orman says that we are “wasting more than when we feel less than". When we do not feel our own worth, spending in an uncontrolled way can be a reaction of self-pity for the fact that we do not have something that people seem to have richer than us, and this becomes an excuse not to look deeper inside ourselves to figure it out. which actually offends us.
- One of the indicators of self-disrespect is buying something that you cannot afford. The spiral turns and entails hurting oneself, not being able to find funds to pay for other needs or even paying for what one has acquired, and a voluntary agreement to be a lifelong debtor.
2 Bargain more. Another mistake that people who make enough money often make is to stop bargaining. This does not mean going to the penny shops; it means learning how to ask for a discount, free warranty repairs, or return of defects in order to save money. If you do not do this because you think it is "unsightly" or you find it to be a lack of generosity, then this is your delusion. We live in a system of sales and profit, and you deserve to receive benefits just like the other person. And for those of you with college degrees, a degree doesn't mean you give up your cunning common sense!
3 Forget about your financial savior in white armor. For women, remember the most important thing: a man is not a financial plan. No matter how charming, adorable, and persistent it seems, you need to keep your financial head tight and take good care of your financial transactions in a practical, sensible way. Even if he is generous to the point of recklessness in your enchanting shopping trips, this is not a reason to give up financial independence and common sense. Sticking to a budget does not mean living neither average nor poverty-stricken, but rather setting an example.
- - Good partner maybe help with finances by cooperating on frugality and relentless income rather than spending lavishly, and the bad can hurt them.
4 Dig into yourself, doing what is right, not what is pleasant or easier. A great sense of satisfaction quickly disappears after a purchase, as the item soon becomes old. Suze Orman advises you to ask yourself three "control" questions before buying: 1. Is this the look (for you)? Is it necessary? Is it real (for yourself)? If you cannot answer all three of these questions in the affirmative, then you must refuse this purchase.
- It also includes not pampering loved ones when you know better and understand that spending more will only soften them even more, instead of helping you learn about financial realities.
- Never waste your savings on a rainy day or long-term investments on unnecessary whims or helping people in trouble. You yourself will find yourself in an unpleasant situation if you do this. If this sounds cruel to you, refer to Sus Orman's security questions again.

Part 2 of 6: Set aside your reserve

1 Have a headroom in your life. There are two simple ways to do this: 1. Reduce costs; 2. Increase income. For most people, the first option is more realistic at the moment, although you shouldn't underestimate yourself of targeting the second option as a long-term goal. Start with the following:
2 Write down everything you spend. Take a small notebook and write everything from a daily newspaper to 300,000 boots. This method works right away: just writing down what you eat will make you eat less, by writing down what you spend on, you will be aware of your expenses. and should ultimately lead to their reduction. Expect to be shocked if you are used to making excuses for your constant lack of money.
3 Start thinking about petty, useless expenses. Don't waste unnecessarily on something that is absolutely unnecessary and that you could have prevented if you were a little more organized and had willpower: the parking ticket you were charged for losing track of time. Cigarettes. A fine of 350 rubles for late payment, simply because you are not attentive. Membership to a gym you don't visit. Taxi because you were late and you are always not collected.
4 Determine your budget. Don't set it hopelessly unrealistic. Divide some of your monthly income into substantial debt repayments (not just interest payments). Calculate the monthly fixed expense and include the deferred expense on annual and planned expenses - car maintenance, vacation. Divide what is left by 31 to see how much you should be spending each day.
5 Think about your food expenses. Many people with sufficient income have no idea how much they spend on food. You may think that you despise fast food, but a long, careful look at your basket in the supermarket can tell us very differently. The trick is to buy loose, large, and buy late during the day. Keep in the fridge everything you need to cook from scratch, come home late from work, and not have time to prepare a full dinner. Stock up on a selection of cheap recipes for everyone's favorite foods.

Part 3 of 6: Recognizing socially imposed deprivation

1 Use your frustration to change attitudes towards consumer products. One very good way to get rid of feelings of deprivation is to stop reading fashion magazines, home improvement magazines, consumer technology magazines, and watching tawdry TV shows that artfully make you feel poorlyif you don't have a trendy designer thing, the latest gadget, or modern home appliances (it's impossible even to keep up) - and their advertising that brazenly makes you feel worse than others... Can that fancy camera, trainer, or latest phone really make you happier when you realize that this purchase will drag you even deeper into debt? No one will notice if you are using an expensive shampoo or not, the main thing is that your hair is clean. On the other hand, you don't need to flaunt your frugality too much. Strike a healthy balance of knowing what you want versus what you need.
- Instead of striving to have what you don't have, look at what you already have. If you don't like it, take it to charities or put it up for eBay if you can sell.
2 Recognize your obsession with brands. It makes sense to be loyal to a brand that delivers quality and durability. It doesn't make sense to be loyal to the brand and buy everything that it puts on the market every time. A very low percentage of people notice the brand of clothing you are wearing. Are you sure you really want to impress them? Being too emotional about brands will burn a hole in your pocket. Focus on getting value for money, and prioritize quality over quantity. Remember that many brands don't have the quality they advertise: a company only needs a few advertisements to get the world to buy enough of its products, but don't be tempted to buy something when the ad is itself is anproduct.

Part 4 of 6: The Credit Card Carousel Crash

1 Forget juggling with credit cards. It is neither solid nor reasonable to give yourself a false sense of financial prudence when, in fact, you go deeper into debt. Instead, play sniper: rip your cards one by one and save yourself the unnecessary expense of having multiple credit cards. The goal is to have only one bank account and one credit card for emergencies. Of course, if you can cut your credit card down to a $ 15,000 reserve card and rely on cash transactions (including debit cards) for everything else, you'll laugh.
- Credit cards offer slightly more marginal value than debit cards. But if they tempt you to spend more, like most people do, it's best to avoid using them.
2 Avoid unnecessary interest charges on debit cards. Find a credit union or bank that has lower fees and fewer penalties for making mistakes.

Part 5 of 6: Avoid Exhausting Shopping

1 Stay away from tempting and dangerous places. These include motorway roadside services, convenience stores, in-store sales, and even buffets in movie theater lobbies. Do not even try to flip through catalogs of mail orders and risk spending a small amount on a little thing. Instead, send the catalog directly to the trash bag without opening it. If you have to walk past designer chains, go quickly and don't glance at them a second time.
2 Don't get carried away with “money-saving” tricks that are time consuming and more troublesome than they are worth. These include home sewing and discount hunter mailing list subscriptions.And be careful on sales: discounts save even more money if you don't buy anything at all.
3 Be prepared. Bring snacks and water bottles from your home for the kids everywhere with you. Have some change for the parking meter, a pair of tights in your bag. Never buy an item again because you forgot your home.
4 Keep track of work-related costs. How can you go to work and not spend money there? Workplaces often reimburse your paycheck to stay there and away from your usual resources. There's parking fees, coffee breaks, cafeteria lunch, shops, souvenir shops and the like. Remind yourself that you are making money there for yourself, not for the employer and related business, who will see you as a source of income. Ways to overcome this financial hole include:
- Alternative transport, search for off-site parking, transport sharing.
- Your bottled water is as refreshing as the hot, dirty water you get in a few minutes of conversation.
- Home-cooked meals are likely more nutritious than mass-produced plastic food.
- Need some little thing? Stop by a cheap shop on your way home from work. If it's for work, use work money, not your own.

Part 6 of 6: Don't waste anything

1 Set a goal to have a few days a month without spending. In a little while, it will become a game: how can I live today without writing anything on my little blue notebook? How resourceful can I be with the things, products, and resources I already have at my disposal? See how often you can make it a habit.
2 Be generous where you can afford it. You can't afford to become a Lady of Generosity (currently), but you can give others your time, support, friendship, a spare bed for your friends' kids, cheer up your old neighbor, or tomatoes from your garden. Thrift can easily turn into stinginess, but watch out for how generous you are: if your finances are a problem, set a realistic cap by giving back about 10 percent.

Tips

Open a Christmas Club deposit, but put in more than you expect to spend on gifts. Surplus is great for a mini getaway or special purchase. Plan ahead and wait to catch a huge sale on whatever you want to buy. You will get a powerful boost when you realize that you actually did it, paid for it and did not increase your debts, and you got special pleasure or something new.
Use cash. When you buy with real money, you actually feel a physical loss instead of relying on credit cards.
When you intend to spend money that is firmly settled in your account, as opposed to spending imaginary funds, whose amazing elasticity is there only to stimulate you to pay interest, think how it feels when the money you actually have is completely different. on when you owe money. The prospect of splashing them on a pair of shoes almost identical to the two you already own, oddly enough, seems boring.
Do this once a day. Start small, set goals, reward yourself (not with any kind of shopping, of course) and enjoy this game.
Thoroughly rethink your wardrobe and only buy items that go well with what you already own. Because by doing differently, you are adding to your wardrobe, not just adding to it. Try to get clothes that can be used for different occasions, not just for one event.
Begin to behave the way really rich people do - not those who only play this role.Bargain aggressively. Become a difficult customer.
In order to always have funds in the bank to pay current bills, add up the amounts spent in the last year and divide by 52. Round up to 500, 1000 or 2000 rubles. Don't forget to add what you pay on a quarterly or yearly basis as well. Make sure to use real numbers for different bills, like utilities, do not "figure", but take them from your checkbook. Report this amount weekly to your bank account, no matter what, even while on vacation. And you will already have funds in your account when you need them, plus you will receive interest if you have chosen the right bank.
Take a jar and throw all your small coins into it until you fill it up. When the can is full, take it to the bank. (Just don't go to one of these coin shops as they charge a coin counting fee, which won't save us money).
Try to buy things with a long lifespan. For example, a pair of shoes may cost a little more than you would normally buy, but calculate how much longer and longer they will last for you, which will end up costing you less money than buying them cheaper but more often.
Even in a difficult situation, these tips will come in handy to help you survive and get through difficult times. Unemployment doesn't last forever and even high deductions can handle medical bills.

Warnings

Do not overdo it, assess your budget soberly. If you do not stick to it (by analogy with a diet), then you will only get worse.
Don't expect these things to change everything if you lose your job. They will only delay the inevitable. You definitely need to find another source of income. Browse all opportunities, including business activities. Consider your satisfaction with your new job as more important than how much it brings you - you've worked three-quarters of your adult life, so for a happy life, do something you love and enjoy. Disaster can be an opportunity if it changes your path and sets you on the road to an important goal.