How to never be broke - Bayport Financial Services
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Bayport Blog

How to never be broke

Published: January 24, 2022
Categories: financial literacy
Tags: Managing your Money

Avoid being broke by doing these things

The thought of never being broke sounds impossible, especially in January. But it is possible if you get into the habit of doing a few things regularly and consistently.

Financial security does not only depend on how much you earn. In fact, what you do with your money is far more important than the size of your pay cheque. The difference between people who never have money and those who are never broke, is a few simple but effective healthy money habits.

People who don’t run out of money:

1. Set a weekly or monthly budget that shows essential expenses, such as housing, food and transport, as well as nice-to-have items. Why? Because a budget tells your money where to go instead of wondering where it went.

2. Stick to their budget, no matter how difficult it is in the beginning. This helps build a healthy habit of spending control and knowing how to manage money.

3. Track both their income and expenses, no matter how small the amounts might be. Use apps, spreadsheets or even a simple notebook to make sure every cent that comes in and goes out is accounted for.

4. Only buy things they need, not everything they want. This includes not buying flashy cars or houses, and learning how to dress well without splurging on expensive brands.

5. Are smart with planning, buying and preparing food so they don’t waste money on takeaways or on groceries that go bad in the cupboard or the fridge.

6. Always have an emergency fund so that they don’t have to go into debt to deal with unforeseen expenses. The trick is to put a little of your income into an emergency fund every month, no matter what.

7. Look after their health to avoid constantly going to the doctor or buying medicine. By taking better care of your health – eat less sugar, exercise more and get enough sleep – you will save money and improve the quality of your life.

8. Actively look for deals and discounts because they know that little savings here and there, over time, add up. They also write down their savings and then put that amount into their savings account.

9. Do things that don’t cost money, such as exercising. Thomas C. Corley spent five years studying rich people, and he discovered they exercise consistently. Three-quarters of them exercised for 30 minutes a day because it’s good for the body and brain.

10. Mix with other people who have good money habits so that they can support each other and learn from each other. Hanging out with people who don’t budget and save and who run up debt, makes it easy for you to do the same.

11. Often have more than one income stream because they use their free time to look for opportunities to start side hustles and little businesses.

12. Educate themselves about money by reading books and articles, watching videos or having conversations with money-savvy people. The better you understand money, the better you become at managing it.

13. Invest a little money every month in stocks, shares and other investments. They also make long-term plans and grow their portfolio with their future wellbeing in mind.

14. Treat themselves – but with experiences and fun activities rather than spending money on things they don’t need.

15. Gamify money management to make it fun by, for example, setting themselves savings targets and then tracking their progress with colourful charts and fun activities. And they make sure to reward themselves when they hit certain targets.

Nobody is born knowing how to work with money. But we are all born with the ability to learn from others. When it comes to money, let 2022 be your year for learning from people who are never broke.

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