What to do when you’re broke. Are those numbers in your bank account not getting you anywhere? Here are 5 things to do when you’re broke. Money is everything whether people admit it to themselves or not. I personally have been financially broke since my teenage years and the levels of how broke I was have varied all the way into my current adulting life. I’m not nearly out the woods yet, but I’m blessed to no longer fear if I would be able to afford to eat or pay this NYC rent. Try these five things ASAP once you determine that you’re broke.
1.Stop spending immediately. You’d be surprised at how much money you spend in a day without even realizing. By not spending you give yourself a moment to focus on these next steps. This is a big first step in figuring out what to do when you’re broke.
2.Write down your expenses and income sources for the month. Really think about your day to day life and add it to the list. For example if every day you get a cup of coffee at breakfast but toss the spare change in the “donate to xxx charity” box add that to your list. Same with income, write down all that you normally have come in.
3.Draft a budget to see where you stand. I know every financial article you read says blah blah budget, but it is key. What many don’t tell you is that it’s not rocket science. You can make a simple spreadsheet or get fancy and make a pivot table, the choice is yours. All you need to do is list your income, then subtract your expenses. If you have a positive amount of money left over congratulations, you have some wiggle room in reaching your financial goals. If that number is negative there is still hope. Really there is; don’t worry after this post there will be plenty more because my amount of money left over has been negative much longer than it has been positive.
4. Determine what you really need. Do you have your laundry picked up and delivered? Do get two cups of coffee a day at Starbucks? Thinking about spending on what you really need makes you realize where you may have been splurging too much.
5. Remain positive. It’s super easy to get into your feelings about your finances. I have good days and bad days, but reaming positive about my finances has been more helpful. I found that when I was pessimistic about it I didn’t even want to bother to try.
I’m adulting and one of my key struggles is finances, it’s a serious monkey on my back that I hope to fully get rid of real soon. In my current financially broke saga of my life I have learned a ton and I’m going to keep sharing what I know. You aren’t alone in this folks!
Figuring out what to do when you’re broke isn’t the end of the world. Are you broke too? Want to do better with your money? Sound off in the comments.