How to Stop Being Broke

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Being broke is a terrible feeling. Never having the funds to do the things you like and worrying about excessive credit card debt is never fun. Figuring out a way to stop being broke can change your lifestyle and your way of thinking.

It’s time to stop being broke!

Let me start by telling you a story about my financial situation.

I have never been super wealthy. More often than not, I would find myself eyeballs deep in credit card debt in my early years as an adult. Needless to say, it was not cool. Stress and worry about making my next payment for loans caused many sleepless nights.

When it finally clicked that I was living above my means I was sitting at the window of a Starbucks drive-thru and my card kept declining every time they ran it. I eventually managed to scrounge up some cash so I could pay for the tasty treat that I did not need. Ultimately it was embarrassing.

I later went home to figure out how much I was making versus how much I was spending. Let me tell you, on a monthly basis, I was spending an average of $400-$500 more a month than what I was making. I was doing this by putting everything on a credit card. That, right there, is considered a huge mistake.

So how do I stop being broke?

First thing is first, stop spending more than what you make! Most of us live way above our means. It is so easy to open up a line of credit and charge everything we want to a card. At one point I had five credit cards! When I tallied up how much debt I owed I wanted to kick myself really hard.

Cut down spending and your expenses

This should be easy. You know what bills you have to pay each month. Now all you have to do is trim the fat. Things like cable and going out to eat are biggies that can be cut down or taken out of the equation entirely.

Related: 9 Things to Stop Buying When on a Budget

Create a budget and stick to it!

I can’t tell you how many times my budget has helped me not over-spend. A budget is a great guide to make sure you are on target and meet your financial goals.

Live below your means

This may seem a little difficult if you are living paycheck to paycheck but then again this is all part of trimming down your spending and expenses. If you go in with the mindset you are wanting to actually have extra in your budget and not just survive, then this should not be hard. For example, if you love grabbing a coffee through the drive-thru and don’t think you can give up coffee then change how you drink coffee. Buy some coffee grounds and brew some at home. You will be amazed how much you save and it helps you live below your means.

Pay off your debt or save!

One great way to not be broke is to pay off your debt. If you think about it, when you live below your means you can take that extra money you saved and apply it to your debt. Once it is paid off that is one less bill you have to pay each month. It’s a fantastic feeling when you no longer have to worry about that credit card or student loan bill.

It may all seem overwhelming when you start but it doesn’t have to be. As long as you start with the mindset of “I don’t want to be broke anymore!” then you will dominate what needs to be accomplished. I didn’t start out with the Dave Ramsey mindset but I managed to get on the right track over time. If you want to get a more in-depth, nitty-gritty mindset for tackling debt and stop being broke, check out Dave Ramsey’s book The Total Money Makeover. It has saved me a ton of hassle figuring things out and a better game plan.

Until next time!

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Kim Calderon

Kim is a wife and a stay at home mom who loves spending time with her little boy. She likes managing her home and seeking out ways to improve her way of living.

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