Why Am I So Broke? Possible Reasons and Solutions

Joseph Kanu
Joseph Kanu  - Content Writer, Editor and Blogger April 1, 2023
Updated 2023/04/01 at 1:59 PM
Why Am I So Broke
Why Am I So Broke

Hi there, do you want to know why you’re that broke? Read this article.

Being broke is one of the most frustrating things that can happen to people because when people are broke, they can’t get what they want, go where they want or even do what they want. The query, “why am I so broke?” is one of the top searches by internet users and that is why we have made this special article to get you covered.

There are several possible reasons for your being broke, following that, we’re going to give you 12 possible reasons why you are so broke, and how to fix them.

Below are 12 reasons why you are so broke and how to fix them:

1. You Don’t Earn Enough Money

The first possible reason on our list is that you don’t make enough money. It is impossible to survive in any economy when your expenditure exceeds your income for a set milestone. You are possibly broke because the amount of money you make isn’t enough to pay your bills, and in most cases, after settling some major bills you’re often left with nothing till your next pay.

Solution:

Get a more sustainable or higher-paying job. If you’re self-employed, bring in more strategy to minimise expenses and maximize profits so you can have enough to settle your bills and pressing needs and then have a reserve to take care of urgent needs.

2. You Are Probably Lazy

Laziness can be very disastrous, if you don’t always feel like working, there is no way you are going to make money. If you always have the opportunity to work and get paid but you always feel so lackadaisical you should know that the reason you’re so broke is that you are lazy.

Solution:

Get up and work and make as much as you can, no one is going to serve you all you need when you don’t work to get them.

3. You Keep Spending What You Expect To Make

You tend to always believe that the same amount of money or more you spend will come in anytime soon, and often the expected money never comes and since you do not have a reserve, you go so broke.

Solution:

In this case, just pretend like you arent expecting any amount of money anytime soon no matter how sure you’re about the expected money, this will help you spend wisely and keep some money as a reserve and as well develop and sustain good saving habits. 

Always bear in mind that unforeseen circumstances usually come up, and in those cases, how much money you have as a reserve and how prepared you are determine your fate.

4. You Keep Buying What You Don’t Need 

As a human being you have so many wants, however, if you look into these wants carefully, you will discover that just a few are needs. If you keep buying everything you see, you will certainly become so broke and you won’t be able to buy what you need. 

Solution:

Draft a scale of preferences and see how much you have left after you’re done summing up everything to see if it’s going to leave you with an amount of money that will keep you going before making the purchase.

5. You Live Beyond Your Means

Spending above your means is the possible reason you’re so broke because that leaves a piled-up debt behind you. Most times you spend beyond your means because you are trying to keep up with your friends and associates or show people that you can afford a certain lifestyle, however, you’re doing your finances such great harm. 

Solution:

Stop thinking about what others can afford and think about how you can live below your means, when you go broke, no one is going to help you out of it and that’s just the reality.

6. You Don’t Have A Skill

You’re broke because you do not have a skill, there isn’t any skill that is a waste in our present world. If you have a skill, you won’t need to be waiting for your boss to pay your salary because you can always earn from what you know how to do at any time.

Solution:

Look for a skill that best interests you or seek recommendations for skills you can earn very well from and learn it as soon as possible so you won’t ever go broke.

Don’t ever lend any amount of money you can’t afford to give out or lose. Always make sure the amount of money you have left in your reserve can take you a long way till the next money comes in instead of relying on debtors and ending up being disappointed and broke.

7. You Lend Money You Can’t Afford To Lose

The truth is that human beings are not to be fully trusted, so when you lend people a certain amount of money you can’t afford to lose, they’ll end up not paying back and if that has ever happened to you, then it’s the possible reason you’re so broke.

Solution:

8. You Accumulate So Much Debt

Always bear in mind that it is often easy to buy things on credit or request a loan than to pay a debt. If you are always buying things on credit or taking loans you would always spend every dime that comes in on the payment and thereafter become so broke.

Solution:

Try as much as you can to avoid debts and take loans when there is no other way around a financial situation and try not to buy things on credit.

9. You Often Invest On Get-Rich-Quick Schemes

You keep losing a lot of money because you want to get more money by investing in get-rich-quick schemes. We understand these get-rich-quick schemes tend to make you believe you have to take risks to put your money to work for you, however, only a few individuals often benefit while others like you get so broke.

Solution:

Do not invest in any business or scheme you’re sure of, and before you invest, make sure you have a good amount of money to keep you going because some investments may not yield as quickly as planned while some are usually lost, there aren’t many investors who haven’t had cases of lost before, again, it is better to save your money than to invest it into a business or scheme that may crash and make you so broke.

10. You Keep Friends That Encourage Negative Habits

If you keep friends who encourage negative habits, you spend so much money outside your budget because you go to so many places, spend so much on drinks and hard drugs and often time develop strong addictions that will leave your pocket dry at any given time because you may even run into debt to quench your taste.

Solution:

Stay away from friends and company that encourage negative habits, make friends with people who maintain a good lifestyle and learn from them how to manage the little you have and learn how to save against the rainy days.

11. You Took The Wrong or An Unfavourable Job

It will interest you to know that you’re so broke because you took the wrong job or an unfavourable job. If where your place is far away from where you live, and you’re spending a lot of money on transportation when you’re salary isn’t a good amount for what you spend let alone the little you can save then you have no other option left than going so broke.

Solution:

Before you apply for a job or accept a job offer, consider the salary and distance to see if it’s really what you can settle for, there won’t be many things as frustrating as putting in maximal effort and earning salaries not worth the effort.

12. You’re Paying Unnecessary Bills 

You’re spending so much on maintaining multiple cars, or house equipment and those are the possible reasons you’re so broke. If necessity has been met, there isn’t any need for duplications when you do not have enough money to maintain them without going broke.

Solution:

Stop being materialistic and avoid duplication of what you have already on the ground, always bear in mind that the cost of maintenance is often exorbitant as the cost of acquisition, and at the same time, buy what you can maintain.

Conclusion

As we said earlier, being broke is one of the most frustrating things that can happen to people, and that is why millions of internet users put up the query “ why am I so broke”. There are so many reasons people are broke but just like we promised we pointed out the most possible reasons.

We believe you have learned a lot from this article and that you have now realized, why you’re so broke as we learned how to fix each of the issues pointed out here that best applies to you, if that is true, kindly visit our website at Busy Tape for more articles like this.

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