If You Aren’t Doing These Five Things — You Are Broke

Not poor, just broke.

Photo by Fabian Blank on Unsplash

When I need to work on my finances because I’ve had a dip in income for the month or an unexpected expense popped up or I went a little crazy on my vacation and charged beyond my means, I don’t like to call myself “poor,” I say, “I’m broke.”

Poor is a state of mind. Broke is only temporary.

Being broke can be overcome with a new job, a savings plan, a new side hustle, or improving your skills to make yourself more marketable.

If you aren’t doing these five things, you may be broke and in need of a new way of managing your money and your life that takes you go from broke to prosperity.

1. You are not paying yourself first. Make paying yourself first a priority. Look at it as an expense — the most important and the first expense you pay. You put in all that hard work, so you should be paid. A good rule of thumb is putting 20% of your income into a savings account, a money market account, or a retirement fund. This may sound like a lot if you have not been paying yourself anything. If that is the case, start with 10%. Go from 10% to 15% in six months, and then 20% in another six months. If you don’t have that amount because your total income is allocated for other expenses, cut out a few non-essentials, or…