How to Stop Being Broke? (13 Steps)

Want to know how to stop being broke? Many people are complaining and wondering why they are broke? Some people are poor but have no idea about the reasons why they are poor. If you want to escape from being broke, you just first analyze yourself why you’re broke. If you are tired of being broke all the time, let this post help you to escape.

Before we start, let me recommend the book of Suze Orman, Money Book for the Young, Fabulous & Broke. It is a great book useful for every young men and women and want to stop being broke or don’t want to become broke.

Who are the Broke People?

Actually broke people are not miserable. They are just lack of money. They are in huge debt. They live from paycheck to paycheck. Broke people worries for money. Broke people don’t have time for their family, because they want to have more time working for money to pay their debts.

How to Stop Being Broke?

Here are the possible solutions to stop being broke. Being broke is a learning experience. But you should not only learn from this situation, escape from this situation. If you are struggling financially,  the possible reasons are yourself and the other things around you is not in order or organized.

If you are struggling financially, something wrong with you and you know nothing about “money”. So, I hope this little and short page will help you learn how to stop being broke.

Image Credit: Jeremy Segrott on Creative Commons 2.0 via Flickr

1. Be grateful everyday.

Just be thankful to Lord God, to your friends, to your employer or to to your clients or customers. The idea is to attract good things. Besides, when you are being grateful, you will have more about the things you are very gratefuyul for. If you have penny in your pocket or a dollar in your wallet, be grateful. Say this “thank you Lord I am still alive and I still have the opportunity to get up and fight for my dreams”.

2. Focus on what you have.

Don’t focus on what you don’t have. If you focus on what you don’t have, your energy will focus on the bad things happening. Focus on what you have and start knowing how to increase or get more on what you have.

3. Focus on what you want.

Broke people focus on what they don’t want. I have read the book “The Secret”, that if you focus on “debt”, you will get more debts. But if you focus on prosperity, you will prosper. Don’t think “how to pay off your debts”. Think how life will be awesome if you have a lot of money. There is a very big difference between the two thoughts.

4. Focus on prosperity not on poverty.

Broke people focus on “poverty”. That’s why they are broke. They consider their selves as “poor”. Starting today, consider yourself as a rich man. Think as if you have your dream house, your dream car, your dream business and your dream lifestyle.

5. Work smart and increase your income.

Do think about the best ways on how to increase your income. But it is proven that, if you want to get out of debt and stop being broke, you must learn how to start your own business. Be an entrepreneur. Sell products and services and make fast profit.

6. Start managing your finances.

In the steps mentioned above, you are letting your mind to stop worrying about being broke. You are transforming another “good side”. Those are the law f attraction. But, it is still advisable that you need to manage your finances.

Broke people just know how to earn money. But managing their hard-earned money. They are not interested. So, if you want to stop being broke, manage your finances. The budgeting, wise spending and saving has a big role in managing your finances.

7. Invest as much as you can.

Saving money is not enough. Saving money can’t help you stop being broke. You need to accumulate wealth. You need to invest money. You need to learn how to make your money work for you.

Here are the types of investments you can try to get rich and stop being broke;

• set up your own business
• invest in the stock market
• invest in mutual funds
• buy land (real estate property)

Bonus Tip: If you really want to stop being broke, stop buying the things that you don’t really need. Stop buying things that depreciates value. Start buying things that appreciates value like property lot, stock shares, etc.

9. Use credit card wisely.

Sometimes, using credit card is the biggest reason why you are broke now. If you have more than two credit card, terminate the other and just one or two. Choose credit card with low annual fee or no fee at all.

10. Pay off your debt slowly until you are getting out of debt.

If you are in huge debt now. Don’t think about them but you need to pay them. How’s that? I said focus on “prosperity”. Remember, if you are tracking debt, your debt will increase. So what you should do?

• Pay those debts that has high interest. Those debts that has interest accumulate.
• Pay debt but don’t forget to invest.

This way, your net worth is improving. I know you understand what I am talking about here. Imagine if this year you have $10,000 debt. And every month, you are investing $200 and at the same time you are paying your debt. After few years, you are out of debt. But the good thing is that, you just don’t pay your debt, you have investment funds that helps increase your net worth. Investments are assets. Debts are liabilities. Which one is more important to you?

11. Don’t procrastinate.

Broke people keep on saying “I will invest”. But they keep on delaying their investment. Broke people love to waste time. And that”s one of the reasons why they are broke.

12. Learn from the stories of rags and riches.

Get inspiration. There are stories of people who are broke and now they are financially successful. Here are the lessons I have learned from the “rags to riches” stories;

• Broke people will ony stop being broke if they keep on working hard for their dreams.
• Broke people should be FOCUS and GOAL-ORIENTED.
• They have determination, self-discipline and most of all a winning attitude.

13. Have a rich mindset.

If you want to stop being broke, you must have a rich mindset. If you are tired of being broke and depressed, all you need to do is to copy the mindset of rich people. To know what rich people are thinking and doing, know the difference between the broke people and rich people here.

Tips and Warnings

I know you are now excited practicing this lesson. You don’t have to be in a hurry. Here are the additional information on how to stop being broke.

• Don’t try gambling your money. If you are a gambler, stop it. Be an investor rather.
• Don’t join the get rich quick scheme. If you want to stop being broke. Be wise in spotting business opportunities or get rich opportunities. Be smart in spotting the scams and frauds. Since you are broke, you are so weak and get lured easily on every get rich quick schemes.
• Do not forget to ask the advice of financial experts. If you have a friend who knows personal finance or investing, ask them. If you have extra money, consult with the Certified Financial Planner. CFP can give you proper advice.
• Certified Financial Planner has a very important role in your life when your’re broke. The role of a Certified Financial Role is to help you manage your finances. And I think you agree with me that one of the biggest reasons why you are broke is because you didn’t manage your finances.

So starting today, don’t say “Im’ tired being broke”. Tell yourself, the universe will help me prosper and see every good things in life such as money, good health, awesome lifestyle, great relationship, healthy lifestyle. Now you know how to stop being broke, follow the steps above and you’re fine. Good luck to your journey to prosperity.