Have you been having difficulty about ways to avoid being broke as a low income earner.
To create long lasting wealth, it is important to avoid being broke. You need to learn how to be good with money to avoid been broke.
It is possible to be earning little income and still be great with money. Rather it is about combining some essential skills to ensure that you are getting the most value from your earnings.
90% of money problems have nothing to do with the income you are earning but how to use the money you are making effectively.
In this article, we will be discussing ways to avoid being broke as a low income earner.
Who is considered a broke person?
A broke person is someone that buys or spends his or her money on things he or she cannot afford. If you keep spending all the money you are making, you will soon be broke.
If you cannot buy an item three or five times over, then it is possible you cannot afford that particular item.
Reasons why you are broke
- You are not investing to generate more income
- You are refinancing a lot of things that doesn’t have returns on investment
- You are spending more than you earn
- You are not budgeting to separate your needs from your wants
- You are not willing to sacrifice your luxuries
- You are not willing to take the risk of investing in a profitable business
How to stop being broke as a low income earner?
Avoid living a net zero life: Stop using all your income to buy things you hardly need. Scrap all wants mentality and focus solely on needs pending the time you will have your income increased.
Avoid money traps: Start buying things you can afford out rightly without being charged extra interest cost because these types of spending leads to money traps.
Learn how to grow your money faster: Take a course or read a book on how to increase your income. This might take a longer time than you anticipated but you stand to gain a lot if you can learn this act.
Decide you will never be broke again: Ask yourself if the action you are taking now will make you rich or broke. Financial success is basically choosing long term financial freedom over short term.
View the situation you are in as a temporary state and break off from its hold to achieve long term wealth.
Leave on less than you make: Budgeting will help everyone to identify their needs for a period of time. It also helps figure out if what you have will be sufficient for what you need and to adjust to fulfill needs. This act will help you to live on less than what you make.
What to do when you are completely broke as a low income earner?
When it comes to being broke as a low income earner, it might be a temporary situation if you make a decision not to entertain the thought for long.
But if you are accepting you are broke all the time, then you might stay broke for a very long term. Use the time to access your financial state and understand you can take control of your finances both at present and in the future.
Recognize you have the ability to have financial abundance. Also, change your mind set about how money work around you and stay inspired. Understand that you need to make some changes in your financial life. Changes like applying for jobs or start a new business opportunity.
Ways to increase your income as a low income earner
- Increase the volume of work
- Learn to make money while you are not working
- Specialize in something and gain mastery: The more you learn, the more you earn.
- Have your expenses under control
- Sell more and charge more. Sales solves a lot of money problems
11 ways to avoid being broke as a low income earner?
1. Cut back on all your expenses in the last three months: Take inventory and check things you have been spending on that is not giving you return on investment or that will not generate a return in future.
2. Take immediate action: Do not spend too much time brooding on being broke, keep your head up and face the reality. Start brainstorming ideas on different ways you can improve your financial situation.
3. Check what you are spending money on: Keep tab on things that are you are buying that isn’t generating a return or that will not generate a return in the future. Things like buying clothes, eating out, and going for entertainments might be draining your income more than you can imagine.
4. Break down the financial aspect of your life: Conduct a thorough check on what is making you money and what is costing you money. Separate the two aspect of your finances and find a balance between both. Strive to increase what is making you money and reduce what is costing you money.
5. Find a way to generate more income: Sell thing you do not need to buy that great book or enroll in that course that can introduce you to new business ideas or help scale your business which can generate more money and in the future.
6. Own things that increase in value over time: Start acquiring things that has potential to increase in value over the years. When you invest or own profitable businesses that solves peoples pain point, they tend to increase quicker and make money faster.
7. Consider taking an easy part time job: Treat your part time job as your angel investor fund to your actual business you want to grow and go full time in the future. Invest some of the money you are getting from your side hustle job back to your business.
8. Acquire your first asset that makes money while you sleep: By publishing a book or creating courses for people to buy can make you money while you sleep.
9. Secure a strong mindset: Remove lame beliefs from your mind and do not sabotage your progress in making money through your unbelief. Be confident and have strong money mindset.
10. Use your actively earned money to solidify your income generating assets.
11. Learn to pay yourself first by investing in profitable stocks, index funds or crypto. Make sure you conduct your own research before you invest your money in these types of investment.
In conclusion, for you to successfully avoid being broke as a low income earner, you need to deal with the situation at hand immediately by monetizing your existing talents, reduce the cost of your bills as much as possible and think of more creative ways to increase your income.
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