People who are constantly broke tend to portray some kind of bad money habit.
These bad money habits are actually the major reasons why some people are constantly broke.
How you spend and manage your money every day has a huge significance on how you can build your finance successfully.
Here are bad money habits of people who are constantly broke you should take note of.
1. No budget
Someone who is constantly broke surely does not have a budget. If such person does have a budget, it means the person never follows through with the budget.
A budget is a good financial tool everyone must have and must follow through. So if you do not have one or you do not stick to your budget then you might constantly be broke.
2. No financial goal
Broke people are most likely not to have any financial goals. Without a clear financial goal, then you budgeting and saving money is pointless.
Setting financial goals is important for your finance because it helps you focus on what you want to achieve financially. If you don’t have any financial goals you will end up broke
3. Spending money as soon as it comes
Spending money immediately someone gets money is an attribute of a constantly broke person. If the first thing you do when you get money is go splashing it all about, then you will constantly end up broke.
If you also live from salary to salary you might end up broke if you don’t have good money management skills, and the best way to do this is to budget and have a financial plan.
4. No emergency fund
You should always be prepared for the unexpected. This is why you need to to have an emergency fund for such unexpected life situations.
Imagine you do not have an emergency fund and something unexpected happens.
This means you would have to take out of your income to sort it out and which might always leave you broke because you have dipped into your income to sort such unexpected situation
So you need to create an emergency savings fund for unexpected life situations
5. Lacks of clear financial plan
A constantly broke person is likely not to have a clear financial plan.
Without a financial plan, you might not have clear priorities for your finance, which would not be good for your finance.
Sometimes you could drift from your financial plan due to unexpected situations, which is fine but if you constantly drift from your financial plans, then you might have some financial issues which you need to check.
You need to have clear financial plans for your money
