The 10 Things You Have to Do Right Now if you are Broke
Being broke is not a comfortable situation to face in this life. This is the case especially when you have not achieved the dreams you are pursuing or the goals you want to accomplish.
When your bank account does not show hope, it can be a difficult situation to find yourself. Many have been there, but there are things you can do to make your situation better. You must believe and get up so you can move forward.
In this article, we will be looking at The 10 Things You Have to Do Right Now if you are Broke.
Let’s read on below to learn more.
The 10 Things You Have to Do Right Now if you are Broke.
Pinpoint the issue
Asides from being bed-ridden, two significant things could result in you being broke. First, you may not be earning enough. This often occurs suddenly due to loss of job, injury or illness.
Next, you might be overspending. This often occurs gradually. You charge something to survive. Then you charge extra the incoming month because you have to utilize some funds from this month to make payment of the credit card bill for the expenses of last month. Slowly, it deteriorates into a crisis. You get broke even though you have a job.
You could also be broke due to a combination of both of these factors. You are spending way above your means, and then you have a reduction in earnings. The income reduction would have been bearable if you were spending reasonably, but now, you are broke.
Don’t play the blame game
It’s not difficult to point to instances as the culprit. You had to quit because your boss was mean. Your car fell into a ditch, and you were unable to get to work, so your company let you go. It was not my doing. I required that new car and so on.
All of these do not serve any purpose. The only solution is yourself and no one else. You can get help if you can but the sooner you realize that you are the only one responsible for ending this condition, the quicker that will occur. That is why this is one of the first things you should do if you are broke.
Note the Lessons
For every moment of failure, you should take the chance to learn from it. If you get broke, it’s very easy to want to lay on your bed and let your emotions take over. This can be healthy but set a deadline and do this for a few days max. When you are through, get up and start moving.
With a clear mind, meditate on what happened. Approach it logically, like it were a game that you were scoring. If specific individuals frustrate you, try to look at it from the perspective of an outsider. What happened? What were the factors that can aid you in doing better if it occurs again?
This exercise, asides from assisting you in becoming a better individual, will also ensure you don’t feel excessively helpless. Most of the fears we face stem from the unknown. When you take a moment to hold on and observe, you may be able to change that fear into something beneficial.
Tell yourself the Truth
Deal with the situation, be honest and real with yourself and others. If you don’t deal with this reality, you can’t sort it out. It may seem like a better short time strategy to avoid the situation and seek solace, but doing this is also a certain long-term means of being miserable.
Avoiding the issue will only encourage you to keep spending like you always do which is the same issue that landed you in trouble at first. It is time to tell yourself the hard truth and understand that this is a critical situation. Now is the time to develop new methods of spending, thinking as well as saving.
Develop A plan
Being broke has a way of making you feel helpless. In some situations, it can result in poor decision making and recklessness. In this situation, as opposed to getting desperate, it’s better to make a plan.
Approach plan making like you are talking about another individual facing similar issues. What resource or skill do you require more? If you were able to attain it, will it ensure things are less difficult? Proffer solutions to these questions and then begin building.
The plan does not need to be complex. It’s for you alone, and it could be as straightforward as:
- Develop your resume
- Sign up for free networking events every month
- Reach out to successful individuals you know and request for openings
Once you do these easy things, you will soon feel more in charge. And when you are in charge, you feel unstoppable, and this feeling ensures great things occur quicker.
Take Action Immediately
Now that you know you are broke, it’s time to take action immediately. Sit down, check out your bills and ensure everything is itemized. Be factual about your spending and begin cutting out expenses and services you do not need to survive.
Instead of taking the direction of cutting down your surplus spending over some months, head into it and start eradicating expenses immediately today. Not to worry, you will be able to add what you love back to the list later, the instant you are in a stable financial place. But for the time being, mercilessly reduce your spending.
Ask For Assistance
Let the people in your life know the reality of your condition. The longer you lie to yourself and refuse help from external sources, the longer this problematic issue is going to linger and grow.
Asking for assistance can include asking your colleagues, family, and friends for ideas on ways you can add value in your career, how to increase earnings and things you can do to ensure you are different in the marketplace.
Asking for assistance could also mean asking for a handout financially depending on the sort of financial crises you find yourself. To ask for assistance, you may need to let go of your ego and pride.
But, in the long run, asking for assistance can leave you feeling bold, strong and supported while also placing you in a position to attain wealth and abundance later on.
Increase your savings
Irrespective of what the level of your income is, develop the habit of saving or securely investing not less than 10 to 20 percent of your earnings.
You may presently be broke because you refused to responsibly save over the years. Do what is required but ensure you are not living beyond your means and begin putting money aside now.
Keep Learning
You need to reduce your leisure time and instead increase your training and learning time. Ask yourself, what are the new skills I can learn presently? What should I develop? What are others in my field doing that I can implement or follow?
This is a very crucial step to take right now when dealing with being broke.
Communicate
Speaking to those responsible for collecting bills is not a fun activity. Nothing is fun about being broke. But the aim is to get past this situation as fast as you can with the least damage possible.
If the bill collectors are reaching out, speak to them. Do not lie about your circumstance. Do not ignore them, but instead tell them what you will be able to do and when and ensure you stick to any commitment you make.
If you are not able to stick to a commitment, pick up your phone and inform them of what happened and what your next plan is.
Other things you can do
Once you are through with the steps above, you can still try out the following steps to get yourself out of this precarious situation.
Look for a better source of income
Fixing your being broke on a long-term basis may often have to do with some drastic changes. This might include a reduction in living expenses or a job with higher pay. Sometimes, it could also be both. Some of the huge changes require time to occur.
But on the short-term, you will still be able to influence your income. Consider getting a job if you do not have one presently or a second one.
At times, getting a job which is better is the answer. But take caution about letting go of security when things are not going well. It may be a good option to take a second job till you are going positively. You alone will know what you are going through nest, so ensure you make a well-planned out decision, weighing the benefits and drawbacks.
Sell Possessions you do not need
You may have a lot of items you do not use that much or even at all. Gather these up and go to platforms like craigslist to sell them off. Lots of individuals can raise a surprising amount of cash quickly when they sell things that they won’t miss.
Things you should not do when you are Broke
When you find yourself in a financial hole, there are things you need to avoid. Below is a list of some things to avoid:
- Drugs
If you do drugs, it can be very difficult to get a job. A lot of employers can easily identify people who have a drug-related problem. Now, you have to think about how you can pass a drug test which can either be drug-related or a random test. Getting drugs will also require money which you can’t afford.
- Smoking
Smoking results in additional expenses. If you smoke, it is likely going to lead to cancer. This will cause you to spend a lot of money on settling your medical bills. It also costs a lot of money to sustain this habit. If you can avoid this habit, in addition to more spending money in your pocket, you will also live a longer life.
- Looking Down on any job
There is no reason to look down on a job if it is ethical and legal. A job in the service industry can be a suitable option. You can clean houses, wait tables, or answer phones. Anything legal to help pull through.
- Exonerate yourself
In most cases, you will be responsible for the challenges you are facing. There are a few situations which are beyond your control like paying off a huge medical bill on your own or taking care of a loved one who is sick. Take responsibility for the problem you find yourself in and take the right steps to steer out of this financial sinkhole.
- Getting a Gym membership
Paying to get a monthly gym membership can sometimes be an unnecessary expense. Instead, you can go on YouTube to find free yoga videos, do crunches, push-ups, or go running. You can also follow the Scientific 7-Minute Workout. There is a lot of information on the internet which includes simple and free ways to exercise.
- Take Unnecessary Vacations
Any money you can put together for a weekend getaway or a trip can be used in other ways. You can use it in settling your car payments or rent.
- Upgrading your lifestyle
Relocating to a fancy neighborhood or buying a better car isn’t your priority at this time. There is no way you can get enough cash to pay for any of these, and the same will apply if you take out a loan. You should survive in your current condition till things get better.
- Creating Waste
There are lots of ways you can avoid waste. First, avoid paying for things you can do on your own. These include moving your lawn, cleaning the house, or washing your car. Save gas by completing multiple errands on a single trip. Cancel any unnecessary subscription. Remember, a lot of simple dates are more romantic than lavish dates.
- Overlooking your Bills
Ignoring your bills anytime they come is the worst decision you can take. They won’t magically disappear. Avoid the stress that comes with ignoring the bills by going through them. Place a call to the companies and come up with plans for the payments.
- Eating Out
Eating at a restaurant is a luxury you can’t afford at this time. Eat your home-cooked meals and pack your lunch. You should also apply this to your coffee. Spend less when you go to the movies by getting in with cheaper snacks.
Bonus Tip
What if I Have Bad Credit?
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Conclusion
No one loves being broke. With these steps above, you will be able to get yourself out of this terrible situation and live the life you desire.