7 Ways To Go Broke

Saving money is hard, but at the same time, it’s a battle worth fighting.

You have to realize that at the end of the day, being broke is the least desirable position. You have to make a change, but there are all these other things in the way making you spend so much, you have nothing left for that group investment your friends have been talking about.

They bring it up every time you hang out, but you have nothing to invest in because you spent all your money elsewhere. I know you want your money to do more for you, but how does it keep on vanishing the way that it does. Here are seven ways to go broke.

Alcohol

It’s alright to unwind after a long, tedious day of work, but maybe don’t go overboard on weekends. Your friends will be happy that you took that shot, but they’d be happier if you weren’t so down on cash all the time.

The weekend will definitely still be there next week. Alcohol is ridiculously expensive — so much so that you’d have to make a budget for it in your living expenses.

Now, I’m not saying stop drinking altogether — that depends on you — but my advice would be to lay off on the booze (even just a little) and keep some of that cheddar for something you might want.

Impulse Shopping

Everyone is guilty of this to different degrees. An ad pops up while you scroll through your feed. It’s the sneakers that will take your outfits to a new level.

Even if you’re low on cash, you begin to negotiate with the truth and say, “What if they run out of stock. These sneakers are limited edition. If I don’t buy them now, they’re going to be gone and there is nothing I can do about it.”

If you’re anything like me, you’ll buy it anyway and wallow in your brokenness as a sad person in outrageously dapper sneakers.

The irony of the situation will make you think that that’s how life goes. The truth is, limited-edition products are bought and sold every day. They’ll never be off the market.

Products won’t stop existing just because you didn’t buy them on time. Don’t get lured into spending money just because some ad says you’re running out of time. You don’t have to have it now, you can have it later. Your self-worth will still be intact, I assure you just be patient. It’s not worth going broke for.

Multiple Subscriptions

Having multiple subscriptions to different streaming sites is convenient. Whatever isn’t on one platform is surely on the other and vice versa.

It’s a convenient way to track the content you like without ever having to miss out, but you need to tone it down. I know people who subscribe to three music streaming platforms and more than four TV streaming platforms.

Now it’s alright to do what you want, but this seems unnecessary, especially when you’re going to go broke from it.

Evaluate which platforms give you the most value for money. Keep the streaming platforms you use the most and discard the subscriptions of the others. You have no idea how much money you could be saving monthly.

Fancy Meals

It’s easy to spend so much on good food, because why not! Great food can never be underappreciated.

Unfortunately, it can be quite pricey to buy these meals, and if you’re a foodie or a person that just likes nice things, it’s important that you watch your spending on food.

Try to learn the recipes of the food you like and attempt to recreate them at home — I assure you it will be cheaper and while you may not get it right on the first go, it’s a different experience being able to make the meals you like in the comfort of your home. So try it out and save some bucks.

Gas Money and Car Maintenance

Besides the massive carbon footprint, the money spent on gas is a lot. Yes, you bought the car and you have to maintain it.

Though, using other means to go to work can save you a ton of cash. You can carpool or you can Uber to avoid spending so much on gas money. Trust me, it’s a huge help.

Plus, the only reason you get into car trouble is that you use your car. So make it a point to not use your car at least once or twice a week and your disposable income is guaranteed to increase. Even if it’s just slightly every penny counts.

Buying expensive presents

When you buy a gift for people you care about, it can be difficult to express how much you love them.

Because of this, we tend to buy expensive gifts using the logic that the more money spent means, the more love shown and while that’s true to an extent, it’s not practical.

Money can’t buy love or so the saying goes.

Everyone wants to be the favorite uncle or aunt, the favorite friend, or the favorite child. It’s alright, but focusing your money on one expensive gift that’s going to nuke your bank account and make it uninhabitable for the next month is not the way to go.

To be honest, they’ll end up liking a thoughtful gift more and probably won’t even recognize how much money you spent buying the gift.

Don’t break yourself to make other people happy. They don’t want to see you broke anyway.

Giving money to relatives

This may be controversial because some of us get our livelihood from our relatives. It’s true nevertheless.

Early in my life, when I’d just started working, I used to lend a lot of money to cousins and Uncles that used to ask. It’s tedious.

But what are you going to do — turn your family away.

You might have to because the truth is, you’re not equipped to handle their situations and at this rate, you’re not going to be getting wealthier if the money you make keeps on dissipating in the hands of your relatives.

Reevaluate the amounts you give them, moderate your lending. You cannot remain broke at the expense of your relatives. Make boundaries because that money needs to serve you too and not just your family members.

Summary

There you have it: 7 ways to go broke. Hopefully, this will help you keep more money in the bank.

Go ahead and share it with your friends and leave me a comment below.

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Ezra Akankwasa

Ezra Akankwasa

Finance guy by day and programmer in the dead of night. Also, I'm a finance and tech writer.