Why Am I Broke? 10 Common Spending Mistakes
“Why am I broke?” “Where did my money go?” Am I wasting money?” Does this sound like you? Are you worried you may end up like this? You may be wasting your cash and not know it.
Us humans get in habits we perform daily, weekly, or even monthly. It’s hard to break out of these habits because a lot of times. It’s because we do not even realize we are doing them. Some of the worst habits are how we spend our money. You can save a lot of money by acknowledging and accepting your spending habits.
This is a list of 10 common reasons why people ask themselves “why am I broke?” If you see a spending mistake on this list you make, you may want to consider cutting back or eliminating your habit altogether.
This one is huge. Eating out is supposed to be a treat. Instead, Americans use and abuse eating out. 38% of Adults eat out every week. American’s spend almost 2,500 dollars eating at restaurants or getting fast food per year! Know exactly how much you eat out and try to use groceries instead!
Not only is smoking dangerous, but it also gets very expensive too. If you smoke a pack a day, it costs you around $200 a month. Ditch your smoking/dipping habits now while you still can!
You may think that you need coffee to start your day. You may also think, “why am I broke?” Coffee can eat away at your bank account without you even knowing it. If you drink coffee, make sure you at least make yours at home. No more Starbucks! Try to get free coffee at work if they provide it.
You may already know how expensive can be from my earlier article here. Just because the average American spent around 1,800 dollars on clothes in 2017 doesn’t mean you have to! There are plenty of cheaper clothing stores available online and in-store. Make sure to look in the back of your closet too! I bet you can find something there.
Gambling is one of the easiest ways to kiss your money goodbye. Sure you may win some, but the chances are against you. The house always ends up winning. Slot machines and lottery tickets are some the worst bets you can make. At the very least, try table games like blackjack or craps.
Americans have a terrible habit for sugary drinks. “Why am I broke?” Uh, because you drink a six-pack of Mountain Dew every day! You can find a six pack of soda for around $3. If you drink that six pack every day, that’s over $1,000 a year! Even if you don’t drink that much, just know water is cheaper and healthier.
Spending money on alcohol is something you don’t need! Just like smoking, it’s harmful to your body. American’s spent 72 billion dollars on alcohol in 2017 alone! The worst is when we go to bars. I talked all about how to save money at bars in my earlier post here. Please, at least buy your alcohol from a store, not a bar.
Expensive Rent/Car Note
Bear with me here. You can be easily accustomed to paying for rent or car notes that are out of your price range. We pay these bills every month. If you lost your job, are in debt, or are struggling with money, you would need to look at how expensive your bills are. If you think your rent/car is expensive, it’s probably out of your price range. If you have lived at your apartment/house for a while, it may be hard to move. You have to do it though!
There are thousands of paid subscriptions out there today. Barkbox, Netflix, BlueApron, Spotify, these are just a few. If you are wondering “Why am I broke?”, eliminate your paid subscriptions you don’t need!
Everybody seems to have some sort of hobby they enjoy. But our love for our hobbies may be seriously costing us. Some expensive hobbies include drones, fishing, hunting, and even video games. Make sure you know whatever your hobby is, you don’t need these items. It’s very tempting to go buy the newest video game or collectible right when they come out. Don’t give in to the temptation! Save as much as you possibly can.