There are so many excuses that people make for why they don’t have enough money. They don’t make enough, they can’t get a promotion, blah, blah, blah. Oftentimes, these people fail to look at their own behaviours as a reason why they don’t have enough money! There are a ton of reasons why you’re still broke that you’ve probably never even considered.

I’m not saying that you being broke is 100% your fault. We’re often a victim of our circumstances and we can’t get out of our current situations for whatever reason. However, there are a few mindset changes you can make to change your financial future and get out of that paycheck to paycheck cycle. Let’s dive into reasons why you’re still broke and how you can change your situation!

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6 Reasons Why You’re Still Broke

#1 – You Don’t Have Financial Goals

Not having financial goals is the #1 reason why your bank account is empty. I know that sounds crazy, but it’s true. If you don’t have serious financial goals, you aren’t going to stick to anything, especially a budget.

Budgeting is hard work and if you aren’t working towards something that you have a person connection to, you’re going to cheat on your budget. It’s just like if you don’t have fitness goals, you’ll skip the gym way more often if you aren’t working toward something.

What kinds of financial goals should you make?

  • Retirement Planning
  • Debt Payoff
  • Saving for a Home
  • Saving for College Tuition
  • Etc.

Learning how to use an effective budget is a great way to get a step closer to your financial goals once you’ve clearly defined them. If you start the beginning of each month with a budget outlining where your money is going, you’ll definitely reach your goals more quickly. When you have a stable budget, there’s less of a chance that you’ll make silly decisions.

At the beginning of each year, you should take a look at where you stand currently. How? Using a basic net worth calculation. Figuring out your net worth allows you to see how your assets are doing compared to your liabilities and each year you can see how much progress you’ve made!

#2 – You Focus on Others Too Much

With the popularity of social media, we spend a ton of time focused on the lives of everyone around us and not on actually creating a life that we are proud of. If you spend your time focused on what your “friend” from high school is doing, you’ll never have money in the bank.

Why is that? You’re going to see on Instagram that a friend for a new watch and yours is an old model. You’re going to see that someone is on a $10,000 trip to Spain. You’re going to see a serious increase in FOMO (fear of missing out) which means you’ll never be able to save any money.

One thing you need to remember is that there is a huge change that the person who just got back from Spain, paid for it using a credit card and they don’t have any money in the bank! Always remember, a social media feed is someone’s highlight reel not their behind the scenes. You’ll never see the implications of that expensive lifestyle.

#3 – You’re Not Working Enough

I can’t begin to explain how many times I’ve heard someone complain about money but they’re only working 20 hours a week. If you aren’t working at least 40-hours a week, how are you surprised that you don’t have money? If you’re only able to get a part-time position, you should start a side hustleFinding a way to make a side income is the best way to meet your financial goals because usually the income from a side hustle doesn’t have to go toward your expenses!

What’s my favourite side hustle? Well, blogging of course! Starting a blog is one of the best ways to build a long-term side hustle for yourself and you can turn it into a full-time income, if you put in the time. It’s not going to be easy money, but it will be worth it. Not convinced? Check out my post on all about the 13 Reasons You Should Start a Blog.

#4 – You Party Too Much

I’m using the term party pretty loosely at this point, but it could apply to whatever your vice is. It could be junk food, alcohol, eating out, etc. Having a good time at the end of the week is a great way to blow off steam. It’s when it starts to become a crutch that it’s dangerous. Are you relying on it to fill some kind of void in your life?

Let’s imagine you cut out whatever vice you have, how much money could you save toward your goals?

#5 – You Only Make Minimum Payments

The standard minimum payment on a credit card is calculated in a really ridiculous way. It’s the total cost of your interest for the month + $10. So if you’re paying just the minimum payment each month, you’re only paying $10 toward the actual debt!

If you’re only paying the minimum payment on your credit cards, you’re going to take years and years to pay it off because you’re only putting $10 a month toward the principal! This means you’re paying them off for years and years and never making any real progress towards your goals. Try as hard as possible to pay more than the minimums each month if you aren’t able to just pay off the cards completely!

Need some help with credit cards? Check out this post on 11 ways to use credit cards wisely!

#6 – Lots of Talk, NO Action

Everybody knows a person that spends a lot of their life complaining about their financial problems but never makes a step towards changing anything. Are you this person? Chances are if you’re reading this post, you might just be.

If you took all the energy that it takes to talk about your problems and turned that into developing solutions, you could be out of debt and making extra money in no time! Taking action towards a goal isn’t hard, it just takes a little extra motivation and I’ll be here to help every step of the way.

If you want to stay connected to this blog in order to start taking action, please join our family and sign up for the newsletter above! It’ll notify you of upcoming posts and help make sure you stay motivated.

Final Thoughts

As always, thanks so much for reading and taking so time out of your day to hang out here with me! If you know any other reasons why someone may still be broke, please feel free to leave them in the comments below!

Thanks for reading,

xo Taylor

here are the reasons why you're broke and what you should do to stop being broke! how to save money when you're broke, how to stop being broke, how to make more money, how to set financial goals