Check your Pocket or wallet to know if you are broke!
Inarguably, one of the major things everyone wishes him/herself is to be able to satisfy all their basic needs and wants.
I don’t need to distinguish between needs and wants again, remember, I have distinguished them in my previous posts on financial education. You may click the following link to learn about need and want.
Today, I will be taking you through an important discourse that affects you and me.
No one wants to be called a ‘broke guy,’ not even in a world filled with ‘fake life.’ Truth be told, sometimes (if not everytime) you realise that you are broke.
Let me quickly tell you what being broke mean, being broke simply means temporarily unable to afford some things, which could be due to lack of (enough) fund.
Need I say, you are or have once been broke. Now let’s check out some of the reasons you are broke.
(1) You Don’t Stick to your Budget
In one of her TED talk sessions, Wendy De La Rosa, a behavioural scientist that uses behavioural science to teach people how to make better financial decisions, reveals three reasons you find it difficult to stick to your budget.
This is the first reason you are broke. It is either you don’t have a budget or you don’t stick to your budget. When you don’t stick to your budget, you spend beyond your income. Voila! You are left with zero.
(2) You Spend Lavishly
Check your last transactions, identify those lavish transactions you made, you must not allow such repeat itself again.
How do you identify your unnecessary spendings, you should be able to get such service at affordable price in another outlet. An example is eating out.
(3) You don’t Save
You must learn to save a certain percentage of the penny you earn. That will serve as your backup any time situation calls for it. You should have an emergency fund set aside for health issues and other accidental issues. You should also save to invest.
(4) You always want to Show off your worth
Your friends buy themselves a lot of things, they have even placed expensive Valentine Special orders for their girlfriends, you also want to show that you can afford such expensive life. Have a rethink, it would tell on your wallet.
You are broke because of any of the four reasons highlighted above. Make that decision today, discipline yourself, save first, spend wisely, and be real. With these, being broke will be history.