What Not To Do When You’re Broke
Being broke can be very overwhelming. It can cause you to be stressed out and leave you struggling to find a way to be financially secure. While we cannot control our salary and are forced to make do with what our employer deems appropriate for the role or position we hold, we can make other adjustments in our budget to help with our finances.
Unhealthy spending habits can prolong your financial issues and directly impact your savings. Making poor financial decisions and rationalizing your spending, considering a want to be more of a need, will not help repair your financial state. There are things you should not do when you are financially broke and struggling to make ends meet.
Spend Money on Non-Essentials
Spending money on non-essential items is common, but definitely not something you want to do when you don’t have money. Everyone likes to go out, whether it is to eat, to get a drink, or to see a show or anything else that offers entertainment, but it is a necessity? No. Spending money you don’t have will not help repair your financial state. If anything, it will damage it even further. Things like entertainment can be a great expense and a more obvious reason that your finances are suffering, but what about the less obvious spending? Your morning coffee or lunch during the week? Packing a lunch for work or school is much more budget-friendly than buying it daily. Even if you are only spending $5 a day, that $5 adds up to $25 a week and $100 a month.
Ignore Bills or Pay Them Late
Ignoring your bills will not make them go away. By not paying or paying late, you risk services being suspended or paying a late fee, which will cost you more in the end. You also risk a poor credit rating due to non-payment. While you may not be worried about your credit during this financial struggle, it can affect your expenses. People with poor credit often pay higher percentage rates, making their monthly payments more.
Overdraft Checking Account
Letting your checking account balance become negative will result in overdraft fees. These fees can be overwhelming if you have numerous withdraws affecting the balance. Working hard to keep the balance at a positive balance will require a more detailed account of your spending.
Take on New Expenses
Entering into any new financial contracts, commitments, or subscriptions when your financial status is uncertain will only add to your growing cash flow problem. Avoid taking on any new responsibilities to keep your spending at a minimum.
Keeping Unhealthy Spending Habits
Keeping the same unhealthy spending habits when you are struggling financially can be a problem. It is important to learn from your mistakes, address the issues, and move forward with a better plan. If you have already found yourself in an impossible position and need to grab some extra cash to get your finances back on track, you may want to look into some quick lending options. At Texas Car Title and Payday Loan Services, Inc. we offer a title loan option that can provide the cash you need in no time at all. So, if you need money today, don’t worry, you can get it with us in just 30 minutes or less.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.