Going to a store in order to buy things that we don’t really need is somewhat common, and many people do it without even realizing that they are spending money that they may need in the near future. Even if you spend $100, you still buy things that you don’t need.
Some people may go on unnecessary shopping trips in order to accompany a friend or a family member, and others may do it habitually. Regardless of the reason behind it, going to the supermarket and purchasing things that you don’t need is extremely likely to cut into your food budget, and the funny thing is that some don’t realize it until they’re back at home, unloading what they’ve bought.
The worst part is that there are individuals who will argue that they cannot buy food because they’re broke while purchasing things that they don’t need. Let’s say that an individual is on a tight budget and he has to go to the grocery store to buy some food for the upcoming week. If he has his priorities figured out, he will buy the food that he needs, and then spend as little as possible on creature comforts. If not, he will only buy enough food to survive and then spend the rest of his money on things that he doesn’t necessarily need, and then argue that he doesn’t have enough money for groceries. Unfortunately, there are quite a few people who do this.
While the fact that there are people who are genuinely broke and cannot afford food, there are also some who subconsciously spend their money on useless things, until they end up being broke. As a result, we’ve taken a look at the various reasons why people end up not having enough money in order to have a better life.
So here are more than 5 reasons that may explain why you don’t have any money:
1. You may not earn enough to cover your expenses.
The first possible reason is also the most understandable. It is not uncommon for people to have certain moments when they can’t seem to earn enough in order to pay for rent, utilities, and food. While common sense would dictate that you got another job or tried to find a way to make some money on the side, in reality, these options are rarely good immediate solutions. Instead, you should keep track of your expenses and look for ways to reduce them as much as possible. Furthermore, you should never feel ashamed to ask for help when and if you really need it. Your family and friends will understand and they will not think any less of you if you borrow some money from them, especially if you intend to spend it on food or rent.
Also, consider the fact that if you have a large debt load, you may be wasting a lot of money on interest, and this could affect your credit score. If you keep your score up, then your rates will be lower, and you will lose less money when and if you will ever take out a loan. Look for companies that will calculate your credit score and to research the best way to boost it.
2. You spend too much money on unnecessary things.
There are a lot of people who are broke, not because they don’t earn enough, but because they spend too much. While a lot of things may look attractive, especially right after you get your paycheck, if you give in to the temptation and buy everything that catches your eye, you will rapidly find yourself looking for ways to earn more money to cover your bills. This habit can also turn into an addiction if you are not careful and don’t exercise control when you are on a tight budget. So make the decision to spend less money on things that you don’t need, and you will be OK. Remember that you can always buy whatever you want with the money that you’re left with at the end of the month.
3. You or one of your family members may have serious health problems.
The fact that even in the US, certain medical procedures and treatments can easily leave you bankrupt. Unfortunately, it is a reality that we have to live with each day, and the only thing that we can do is find proper insurance, and then hope that if anything bad happens, its treatment will be covered. Having said that, there are quite a few cases in which someone who has a perfectly decent income ends up completely broke due to the high costs of one or more medical procedures required to bring him or a family member back on their feet.
4. You may give away all of your money.
While people who are exceedingly generous are becoming less and less common in present times, there are still a few out there. If, like them, you find yourself paying a family member’s bills or rent for extended periods of time, then the reason why you are broke should be obvious. Nobody is saying that you should never help friends and family members when they are in need, but doing so for prolonged periods of time is a bad idea, and if you must, do it after you have paid your own rent, bills, and monthly expenses. Look at it like spending too much; if you want to spend some money in order to help someone, make sure that you first take care of your important monthly expenses, and pay their bills out of what you are left with at the end of the month.
5. You may not plan ahead
There is a growing trend of setting money aside for rainy days, and the reason behind it is quite simple: bad, unforeseen things happen all the time. If you save up money and put it into a savings account, then you will usually be able to deal with pretty much anything that comes your way. Doing so, however, requires a bit of planning. Schedule your expenses and make a habit out of setting money aside each month. It doesn’t matter if you save $10 or $100 each month, as long as you contribute to your savings account, you should be fine.
A good way to do this is to open an online bank account. The main advantage with these is that they pay higher interest than regular ones, and, unlike their traditional counterparts, they have almost no fees.
6. Your priorities aren’t clearly defined.
Make sure that you know what is important for your well-being. There are a lot of people who tend to forget that their fridge is empty when they see a beautiful, expensive coat or a cool new laptop. Get your priorities straight and spend your money accordingly. Things like food, rent, and bills should come first, and if you have any money left, only then you can think about spending it on creature comforts. Also, buying things that aren’t vital should be out of the question if you have any kind of unpaid financial debts.
7. You don’t track your expenses, or you’re afraid to do so because “ignorance is bliss”.
You should always track your expenses. Analyze how you are spending your hard-earned money and look for ways to save more. Surprisingly, there are a lot of people who buy things online and then forget about them, only to realize that they’re broke without knowing why. If you spend a few minutes each day looking at how you spend your money, you will be able to correct any unhealthy spending habits that you may have slowly developed over the years.
You don’t need to hire someone to keep track of how you spend your money. There are a lot of online services that will do that for you, for a fairly modest fee. These let you create an account and link your bank, loan, investment, and savings account in order to keep track of your balance and keep an eye on where your money goes.
As an extra piece of advice, try to keep pace with the times and buy things that are as efficient as possible. If you buy a slightly more expensive, but also a more efficient air conditioning unit, you will have to spend less money to maintain it, so there won’t be any additional expenses to keep track of.
The Undeniable Conclusion
The fact is, that if you find yourself doing any of the above, you will end up being broke. When you are in this ‘broke’ state you may be tempted to look for solutions that you might not otherwise consider, such as borrowing large amounts of money, or not buying enough food. Establish what your priorities are, plan ahead, save money, and buy the things that you need before the things that you want and you’ll find that you are no longer living on the edge.