Why you are Always Running out of Money and How to Fix it
There is no upside to being broke. It is uncomfortable, stressful, and counterproductive to achieving your financial goals. The truth is, even though we are rational individuals, and we understand how much we really need to sustain our way of life, we tend to go overboard with our spending.
The good news is, it doesn’t have to be that way! Listed below are possible reasons why you are always broke and how to fix them.
Problem 1 – Ignoring Your Bills / Paying Late
When it comes to bills, ignorance is not bliss. No matter how much you might wish; otherwise, bills are here to stay, and they should not be ignored. The best way to deal with bills is to face them head-on because late fees add up and eat into your disposable income.
Solution: It is pretty simple, pay your bills as soon as you receive your paycheck. You can have this automated via standing orders or direct debits from your current account. It is the cheaper, easier and better choice for your credit score and financial health.
Problem 2 – You Do Not Want to Take Responsibility for Your Actions
This is partly a result of how we were raised. We grow up thinking we’ll receive a large salary immediately we graduate. Sadly, in reality, this isn’t always the case, and adjustments have to be made.
So, you might find yourself refusing to acknowledge the presence of a problem and looking to outsource the reason for your dire financial situation – “It’s the job market,” “It’s the government,” “It’s Brexit.” Essentially, “It’s everything but me.”
Solution: Accept that the system isn’t perfect and move on. The truth is, if you don’t make enough money, it’s your own problem and your responsibility to fix it. It’s time to put in the work. If you have some downtime during your lunch break, you can make some money by filling out surveys, grab some tasks on Task Rabbit on the weekends or sign up to become a driver on Uber.
Problem 3 – You Go Out Too Much
How often do you go out in a week? Every day? Twice a week? Regular conversation and interactions with other people are great, but have you really considered how much socialising costs you? If you do a quick calculation, you’ll be shocked.
So, while there is nothing wrong with the occasional drinks with friends, saying yes to every “let’s hang out” invitation you receive, is a recipe for financial disaster.
Solution: Stay at home more often. You can take up a hobby that doesn’t require you to go out – such as painting or gardening. You could also read a book. Regardless of what you decide, the good news is, your wallet will thank you.
Problem 4 – You Overspend
If you have money problems, one of the first things you should check is your spending habits.
Do you find yourself making too many impulsive purchases? You are not alone. The reason most people buy a lot of unnecessary things is actually psychological. Shopping releases dopamine in our brain, which makes us feel good. More new stuff means more good feelings.
However, since you are not Jeff Bezos, spending frivolously is something you cannot afford to do.
Solution: Consider changing your buying habits. Begin by clearly defining your needs from your wants. And make more purchases targeted at meeting your needs and less on your wants. Don’t worry; you’ll survive.