Does it seem like you're always waiting for the next paycheck? Do you never have money in the bank for emergencies? It's time you took a hard look at why you're always broke. It's not an easy road to go down, but the sooner you realize why your finances are out of whack, the sooner you can fix things. It's time to know the truth about why you're always broke.
You're Living Above Your Means
One of the biggest reasons most people are always broke is that they're living above their means. Instead of paying cash, you may put things on credit cards or purchase things with payment plans. The truth is you don't have the money for these things. You barely have the money to make the payments each month. Instead of giving into that immediate need to have something, take the time to save for it. More importantly, look at your income and see what you can really afford.
You Spend Without Thinking
It may be a cup of expensive coffee here and there, a night out with friends, or even eating out each night. It's different for everyone, but the problem is the same. You're spending money without thinking about the purchase. Sure, it's only $10 here and $50 there, but that money adds up. To help you see where your money is going, write down everything you purchase for at least one month. This truly means EVERYTHING. You will be shocked at how much money is being needlessly spent.
You're Paying for Things You Don't Use
Magazine subscriptions, satellite TV, gym memberships, and large data packages - there are so many things that people pay for but never use. You need to look at your monthly bills and think about how often you utilize that service. For example, if you're only going to the gym once or twice a month, you don't need a gym membership. Stop paying for the things you don't use and you'll soon find that you have a lot more money in your account.
You're Digging a Deeper Hole
Instead of focusing on paying off your debt, you're charging more items to your accounts. This increases your monthly payment and gives you even less money at the end of the month. What you need to focus on is paying off your current debt and not charging anything else. Leave your credit cards at home when you go shopping (or even cut them up) and avoid online temptation by staying away from online stores.
You don't have to be broke, but you're never going to have money in your account if you ignore these issues. Be more aware of where your money is going and stop paying for the things you don't need. More importantly, pay off your debt and stop living above your means.
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