What Not to Do When You Are Broke

Bad financial habits have become very common these days, which leads to low savings, zero investments and a non-existent emergency fund. Student loans, rising costs of living, healthcare expenses and unemployment or minimum wage jobs are factors that further worsen your financial condition.

Hundreds of thousands of people are ‘broke’ right now but they refuse to make a change to their life. Be smart and avoid these behaviors if you are looking for financial freedom.

Don’t take loans

No matter what financial need you have, learn to stick within your budget. It is necessary to keep your loans to a minimum. There is absolutely no need for a car, a new home loan or any other loans in your life. If you ever feel the need, talk to PaydayPixie.co.uk and secure a short-term loan to meet your needs. Otherwise, going completely loan-free is the only option you should have.

Eating out

If you do not have money, then avoiding eating out at all costs. First, eating at home and brown bagging your lunch will help you in keeping your food costs low. Secondly, cooking will help you get access to fresher and healthier food which will be essential in keeping your body in great shape. This is not all, eating such food will also make you fall ill on fewer occasions, because of which you will be able to save on doctor visits and prescription medication as well.

Go partying

This may sound very clichéd but partying every weekend or even spending this time binge eating or drinking in your apartment is a surefire way of losing whatever small sums of money you have. Bring some discipline into your life and avoid a party-going lifestyle. It may pinch you in the beginning but will eventually save a few hundred pounds which could be easily transferred to an emergency savings account.

Paying bills late

Doesn’t this sound counter-intuitive to you? If you are broke, how are you expected to pay all your bills on time? Turns out that you don’t have to pay ‘all’ those bills from now on. If your financial situation doesn’t allow you to have cable, cut the ties to television and focus on YouTube and other methods of entertainment. If you can’t afford your apartment, shift to an all-expenses-paid building. You can also find a roommate or rent out your space to someone. When you have shortened the number of bills you have to pay, simply start paying all of them on time. It will also help your credit score a lot.

Buy new stuff

If you had to choose between creating an emergency fund that will help you in dire times 6 months from now versus buying a new outfit, what will you choose. Ideally, you should forego the purchase of new clothes, jewelry, or any other items unless your condition is better. Doing this will be miraculously helpful in keeping your budget low and your savings high. Don’t buy new stuff unless extremely necessary.

Do you think you can follow all these steps and gain financial freedom? Let us know in the comments below.