Five secrets to never going broke

Being broke isn’t only about having little or no money. Living paycheck to paycheck without any meaningful savings intact is broke. Being in debt is also broke and buying a car or mortgage because you can afford the monthly installments but your bank account balance cannot cover an emergency is equally broke.

Well, somehow this is quite common and our culture, someway, considers it normal.

However, no one sets out to be broke. We all want some financial stability in our lives and if not for that loan or that bad investment we wouldn’t be broke, right?

Here, we have some five action steps you can consider and you will steer clear of being broke:

How much do you earn every month and how much do you spend every month in expenses? Try and find out where your every penny goes.

Come up with a budget that accounts for everything you spend on so that you don’t have anything overlapping, and if anything is left floating add it to your savings.

You need to have a side job, be it freelancing, offering taxi services, or doing delivery of goods. If you have overtime at your place of work, take on that and maybe you can also consider talking to your boss about a raise.

Never stick at one place for too long if you feel you have reached the end of the road. Consider new career paths that are likely to earn you more income.

Don’t go for instant gratification as that will sure land you in trouble, one way or another. Begin with the end in mind and if a potential purchase in not in your budget, let it go.

With your end goal well set, you can set out to achieve it. Encourage yourself; the minor sacrifices you are making now are going to pay off later.

Are you considering starting a new job? First off, look at the potential income from the new job versus your expenses. Break down the numbers and see how the new job is going to elevate your financial status.

Before you venture into something new, sit down and do the math and be sure it is not only going to improve your financial status but it’s going to do so in a worthwhile manner.

Remember to factor in other things that have monetary value like company reimbursements and discounts, health care benefits and other perks like per diems and other allowances.

If you are not satisfied with your current status you need to be proactive and take a practical step forward.

Don’t wait, this is the time to submit your resume for that ideal job you have been considering for a while now. This is the time to sell that car. You need to open your eyes to the need for change and take it upon yourself to make it happen.