Dec 28, 2016 10:20 AM EST

The 3 Reasons Why You’re Always Broke: Bad Spending Habits To Break To Fix Your Finances

It’s a few days before the next payday, and like the previous months, you start borrowing money from friends and co-workers so you’ll have enough to get by. If this scenario sounds familiar, then you may be mishandling your finances, and it’s time to find out why you’re always broke.

Oftentimes, being in dire financial straits has nothing to do with how much one makes in his job or business. Surprisingly, it’s the people with relatively good income who find themselves to be a few dollars short days before payday. Here are the top five reasons why you’re always broke.

You’re spending money that you do not have

As everyone relies on credit, it’s easy to buy a big screen TV or a pair of designer shoes with just a few swipes of a card. But having a credit card doesn’t mean that one can go crazy on a spending spree, as the debt has to be paid eventually.

Credit card purchases should be saved for the most essential items only, and it’s advisable to have a maximum of only two credit cards to resist the temptation to spend. It would also be a good idea to get into the habit of paying with cash, as one will be able to stick to a budget and buy only the necessary items needed.

You buy things that you don’t need just because they’re on sale

The lure of the sale sign beckons many shoppers, and it can be particularly hard to resist its siren call, especially when something is being offered at a deep discount. But a bargain is hardly a bargain if a person does not have a particular need for the item. For instance, why buy 24 cans of creamed corn if no one in the family particularly enjoys it?

The smart way to take advantage of a sale is to take inventory of the things that you truly need before hitting the stores with your credit card in hand. If there’s nothing in the store that you need, then it’s best to walk away.

Your little treats and purchases have gotten way out of hand

A $5 cup of coffee at the start and end of every work day. A meal at the trendy bistro which starts at $20 for a slice of multigrain toast spread with organic avocado. You get the idea.

Though $5 for a cup of coffee may seem like a small amount, you’ll find that you’re spending way too much on your favorite beverage when you do the math. If you’re spending $200 for coffee every single month, then it’s time to make some changes to avoid being broke again.

Treating oneself to a little luxury isn’t bad, but making some adjustments can help to avoid being broke again. For instance, you can buy a coffee press or coffee maker and make your own brew to take in a thermos before heading to work. You can also prepare lunch and brown bag it to work at least three times a week. The idea is to reserve the treat for a day when you really need it—it will seem even more rewarding and satisfying that way, not to mention that it’s better for your finances when you learn how to control your spending.

For more, check out Jobs & Hire’s list of the signs that you’re living beyond your means.

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