Why are you always broke?
‘I don’t know, I hardly buy anything!’ Some people are broke because they genuinely have very little money coming in each month. Maybe they live on benefits or have to support a large family on the minimum wage. However, in my experience there are many people out there who claim they have no money and can’t save who have decent jobs and salaries. Perhaps you have the cash, but need to change your spending habits to get you on track?
I knew a woman who lived in a large house with two family cars and sent her children to private school. She told me she never had any money and they were struggling. The pleas of poverty did not ring true, even when she once had the debt collectors at her door. It doesn’t take a genius to see that her lifestyle was too extravagant for what would to many of have been a fantastic income! Her spending habits weren’t in line with the money she had coming in. She was more concerned about keeping up appearances than she was about the state of her bank balance.
Ask yourself some tough questions to help you change your spending habits
So, before you say your money never lasts and you have no savings ask yourself these questions to identify your spending habits:
Could your accommodation be cheaper? This is likely to be your biggest monthly expense. If you have over extended yourself buying or renting it will hurt. Could you move to more modest accommodation or rent a room out?
Can you travel more cheaply? Cars are a huge expense. If you have more than one car consider whether at least one of you could take public transport instead. Could you downgrade to a motor scooter or cycle? If you need your car you can find out about cheaper motoring here.
Could you holiday more cheaply? I hesitate to say give up on holidays, although many people do enjoy the odd ‘staycation’. However, if you go skiiing every winter and to Disneyland each summer you will need a very full wallet. Could you invest in a tent for some cheaper camping holidays instead? Some of our most enjoyable family vacations have been under canvas.
Do you have money to burn?
Do you smoke? I have little sympathy for people who literally burn money whilst putting their good health at risk. Nuff said!
Do you insist on buying everything new? From clothes to furniture, whatever you need you can almost certainly buy secondhand if you really want to save money. And reusing can help save the planet! Change your spending habits and consider buying second hand.
How much do you spend in pubs/restaurants/cinemas/theatres each month? If you are in the pub three times a week your bank balance will feel the strain.
Do you enjoy a regular takeaway? How much would you save if you knocked this habit on the head and cooked from scratch instead? Even if you don’t waste money on take outs, do you use a lot of convenience food?
A passion for fashion?
Do you love a brand name? If you can wean yourself off designer clothing (or at least buy it secondhand) you will save yourself a packet. When you are in the supermarket, try some supermarket own brands – the big names make you pay for all of their advertising and fancy packaging.
How much does it cost you to look that great? There are so many ways to waste money on hair care and beauty products and treatments, but if you are short of cash you probably don’t need to get hair extensions or your nails done every month and could knock the designer perfumes and makeup on the head in favour of some cheaper versions. See here how you can be beautiful on a budget.
How often do you use your expensive gym membership? If you don’t use it then cancel it ASAP! If you are a gym bunny and there every night then good for you, but could you get it cheaper elsewhere?
Do you have hundreds of TV channels you never watch? You could save a lot by switching to a cheaper package or cancelling it altogether and investing in a Freeview box.
Time to change your spending habits
They are obvious questions really but people are very good at sticking their heads in the sand. Don’t be an ostrich. If you live from pay cheque to pay cheque and have no savings but you walk around in designer gear then you know why you are always broke! Have a good look around the site to see how you can change your spending habits. Start here, which gives lots of tips on how to save money.
(First published February 2017)