10 Reasons Why I’m Broke – A Personal Finance Lesson

Things are, shall we say, less than easy these days. It’s a whole lot harder to make ends meet even on a good month. People are living paycheck to paycheck and a savings account is something no one has.

Obvious things can cause you to be broke. The first one is a job loss or cut back at work that either cuts your hours or your pay. This one has two options, you can find a second job to stay solvent or you can admit you are on hard times and cut back on what you spend.

Let’s face it, if you are making less and you keep spending you are going to go farther in debt. This goes hand in hand with reason number one, the job loss or cutbacks.

A third reason is the cost of utilities like gas and electric and such. You really can’t control what they cost but you can control how much you use and when you use them.

If you were one of the lucky ones to make college then you can rank your college loan there at number four. Hopefully that diploma will help with reason number one.

Rent or mortgage payments are another one of those things that you have to pay. You really need a roof so you can try getting the landlord to lower the rate.

The sixth item on the list is things like a car payment and having a cell and a home phone, you know luxuries. This might not be an option that you like but if you are broke, learn to pedal and deal with just one phone or cut back on the extras on the cell. I mean who needs Internet on the road?

Coming in at number seven is another one of those things that broke individuals really need to stop doing and that is partying. The other term for this is a social life to some people. Did you realize that a 12 pack of beer for home costs about a buck a beer and at the club it can be around $5 a bottle or $60 for 12. Which is the smarter choice?

Looking over the next item on our list is very simple. Stop drinking the name brands and stop eating out all the time. You are broke it’s time for store brand coffee and home made sandwiches.

Let’s face it, admitting you are broke is the first step in making the transition to the next part of your life and moving on.