Why am I broke? Do you ever mutter to yourself “Why am I broke”? If you’re feeling the stress and strain of financial frustration you’re in good company.
More than half of all Americans are living paycheck-to-paycheck. More than a third of six-figure earners are living paycheck-to-paycheck.
Maybe it really is time for millions of people to ask, “WHY AM I BROKE” and then do something about it.
Americans have basically won the financial lottery. There are very few legitimate reasons for a person to be broke in the USA. First-generation millionaires are created daily. The reasons most people are broke in the USA are simply excuses wrapped in laziness.
Here are X reasons why you might be broke. Changing these will immediately improve your financial future.
#1 Your Philosophy Is Suspect
Whether you think you can or think you can’t, you are right. Henry Ford is credited with that gem. Is it that simple, though? Not actually.
Thinking our way into financial freedom is extremely rare. Action is required. However, actions first begin as thoughts.
Bad thoughts lead to poor actions.
Many people in the USA live like victims. They are persuaded that others control their destiny but they are wrong.
Life is harder for some people. Often it’s the adversity that makes us who were are. Without adversity our story is lame.
Colossians 2:8 See to it that no one takes you captive through hollow and deceptive philosophy, which depends on human tradition and the elemental spiritual forces of this world rather than on Christ.
#2 All Of Your Friends Are Broke
Broke people love to complain. Their routine includes binge-watching the latest Netflix series or their favorite reality TV show.
They know all the juicy tidbits about Hollywood gossip or their fantasy sports team but haven’t developed any new marketable skills.
Breaking financially free from the pack is challenging. It can also be lonely. The status quo is comfortable like that old ratty sweatshirt.
I would never tell a person to leave their friends in the dust. Old friends should be cherished because they are rare. However, if your friends refuse to move forward financially and are always doing “broke people” things you should develop a new circle of friends.
Proverbs 13:20 The one who walks with the wise will become wise, but a companion of fools will suffer harm.
#3 Get Rich Quick Is Your Jam
The quickest way to stay broke is to try to get rich quickly.
Developing long-term and sustainable financial success requires patience. Few of us begin life with a job that pays six figures. Salaries increase as we learn, grow, and become more marketable.
Investments in stocks and mutual funds typically grow incrementally. It’s a positive version of compound interest. Reinvested dividends add value.
The first few years often feel like a waste of time.
Imagine a farmer who planted an apple tree in the spring. The little sapling didn’t produce any fruit in year one. In his frustration, he sold it because it didn’t “work” for him.
If he would have waited a few years he would have seen progress. Eventually, he would have a bountiful harvest and could add more trees!
Proverbs 13:11 Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.
#4 Laziness
It’s amazing how many people simply refuse to work because it’s uncomfortable and inconvenient. Someone told them that they were owed a certain lifestyle just because they could fog a mirror.
The Bible gives specific work parameters that we’ve conveniently ignored.
We are told that work is a six-day per week event (Exodus 20:9). The seventh day is a day of rest and spiritual rejuvenation.
We’re now down to five days and forty hours per week. The next move will be down to four days and probably thirty-six hours.
Employers often limit work to five days. That should not stop you from doing a bit more. The union boss is not your Lord.
If you are unable to make ends meet on the five-day work week get another job. Part-time work (at least right now) is super easy to get. Start a side hustle or small business.
Jesus was a great example of hard work. He worked while there was still light. My math puts His workweek at six days and probably ten to twelve hours per day.
Proverbs 14:23 In all labor there is profit, But mere talk leads only to poverty.
#5 Learning Has Ceased
When is the last time that you read a non-fiction book? Are you learning new skills for your job?
If you’re not learning, growing, and changing why should you get a raise? You’re already getting paid for what you’re doing now.
Find a podcast or a YouTube channel (shameless plug for The Profit Dare) that helps you win at wealth without losing your soul.
Pick up a book and begin to read something other than a trashy novel.
Proverbs 8:11 For wisdom is better than jewels and all desirable things cannot compare with her.
#6 Penny Wise and Pound Foolish
The Latte Factor was a popular idea at one time. It’s the idea that spending money on trivial items wrecks our financial future.
The author, David Bach, was spot on in many ways. However, like most good things it was taken to the extreme and pounded into the ground.
While people were giving up their lattes and avocado toast they were buying unaffordable cars and houses.
They were penny wise and pound foolish.
Do you really need that latest and greatest automobile? Just because the bank says that you can afford that 3,500-square feet home doesn’t mean that you have to buy it.
Is there a big expense that you can attack? Stop picking on coffee until you address the real elephant in your budget.
#7 Small Leaks Sink Great Ships
Yes, lattes, avocado toast, sushi, and cocktails can wreck budgets too. It’s important for us to scrutinize our spending.
If you’re broke — truly broke then paying for lunch every workday is terrible stewardship. Refusing to go out to lunch because of fear is bad too.
Scrutinize your budget. How much of a percentage of your income is going towards outsourcing food and coffee? Could it be reduced? Is it possible to divert some of your coffee money into Starbucks stock?
Just a thought.
Beware of little expenses. A small leak will sink a great ship.
Benjamin Franklin
Why Am I Broke?
Being broke is not fun. The good news is that changing your financial situation is possible. Immediate traction is possible by adjusting just one of these seven things.
You can do this!
I dare you to profit!