These Are The Reasons You Are Broke Right Now

3 min. read By eCompareMo on

You are not living below the poverty line, but right now you do not have any money left in your pocket. You cannot retrace where your cash went anymore. If this isn’t the first time that you are wondering why you don’t have money, this is your ultimate wakeup call.

  • You only think about the present. Nothing can ever top this money-eating culprit. It is extremely tempting to shed some cash on leisure and luxuries. Put your basic needs and essential monthly expenditures on top of your priority list and the non-essential expenses at the bottom. Cease spending money impulsively on nothing. Ask yourself whenever you feel like buying unnecessary items: would I still want this with me in the next five years? Will I be able to use and enjoy this in the long run? Discipline yourself from your spending addiction.

  • …and don’t have concrete plans for the future. Naturally, you can splurge however you want because you do not have major goals in mind yet. Have you thought about putting up an emergency fund? Backup savings is important because there are incidents that might go out of hand. Think about a long term and gear up financially.

  • You had a medical emergency and didn’t have the resources for it.  This is a rational but unfortunate reason. Concerns as crucial as health and safety of your family should not be neglected. Hospitalization and medical treatment are pricey yet necessary, which can take a toll on your budget. Try taking other income generating ways to maintain balance for subsidizing for health and other medical necessities.

    (Check Out: 11 Reasons Why Being Thrifty is Really Good for You)

  • You’re underpaid. It’s difficult to manage your budget for all your necessities when your income is not enough. You may end up accumulating more and more debts, which you won’t be able to pay as well. Ask for a raise from your current employer (if you think you deserve it) or look for sidelines you can do on your extra time so your expenses are just at par with your income.

  • You don’t really know what if feels to live by yourself. Many people still take comfort under the wings of their parents. If you are one of those who are still dependent to your mother and father, it’s time to move out and be independent. Doing so will help you stand up on your own, realize your financial capacity, and learn how to manage your budget as an individual.

  • You have too much sense of entitlement. Most workers are overly conscious of their status in the workforce structure, with job title playing a major role in boosting one’s ego. However, being ideal and picky at the same time can hinder your professional and financial growth. If you want the job and the pay of managerial position, you have to start from the bottom and work your way up to the top.

  • You don’t save some for yourself. There’s nothing wrong with sharing your resources to lend a hand. It gives a sense of worth and accomplishment when you help your family by paying for the electricity and water bills, when you contribute a part to a relative’s tuition fee or pay the tab for your friends. But if you are the one who runs short when your monthly bills are due, then you should stop playing philanthropist. Put your needs first, then help others later.

Yes, money come and go. But money is earned and needs to be managed wisely. Do a reset of your finances and be financially literate to veer away from broke days.

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eCompareMo

eCompareMo eCompareMo is the No. 1 financial e-commerce site in the Philippines. Follow us on Twitter and Instagram: @ecomparemo.