Cash The Checks Personal Finance Blog

7 Things Broke People Have In Common

Do you know anyone who is constantly broke? It’s not that they don’t have a job or make money. It’s that they don’t know how to manage their money properly. They overspend on things, they don’t save and they end up in credit card debt.

For them, being broke is a way of life. They don’t know why they’re broke, but they always seem to be short on cash. This has little to do with how much they make. Rather, it’s their lifestyle that’s the problem.

Here are 7 things that all broke people have in common.

They Always Overpay

While you are able to find good deals, they don’t even bother. Their impulsive personality means that when they see something they like, they buy it. They don’t go research prices or even use coupons. The concept of comparison shopping is foreign to them. Look at their smartphones and you’ll find Facebook and SnapChat rather than RetailMeNot and ShopShavvy.

They Don’t Plan Ahead

People who are always broke seem to live in the moment. They do not plan for the future. It’s all about instant satisfaction and not sacrificing anything today for tomorrow. They may seem happy today, but tomorrow they’ll be dealing with the consequences.

They Rely On Others

Those who are consistently broke always go for the bailout when things get tough. For example, they hit up their parents for money. They ask their friends for a loan. They “borrow” things and “forget” to return them. Then when all else fails, they just file for bankruptcy, clean the slate, wipe out their debts and then do it all over again.

They Have Bad Credit

For broke people, a credit card is their best friend. They live on plastic. They don’t use cash, they use their credit to buy things. When debts need to be paid, they’ll get a loan to pay off another loan.

They Need To Maintain A Certain Lifestyle

People who are continuously broke all need to have the best car, the best clothes and the nicest house. It doesn’t matter if they can afford it or not. That’s irrelevant. They need to maintain a lifestyle they cannot afford.

They Lack A Budget

Those who are always broke surely have never created a budget before. They are baffled as to where their money goes. They earn a good income but never seem to have enough money. They don’t know why. The reality is that if they create a budget they would be able to clearly tell where every penny is going. Then they could take action and fix the money leaks.

They Blame Everyone Else For Their Problems

Everything is always someone else’s fault. It’s either their cheap boss, their greedy landlord or the IRS. They always complain about their financial situation but never point the finger at the person who is truly responsible, themselves.

Comments

Maggie@SquarePennies on 11/01/12

I think being impulsive is one of big cause of most of their problems. We need to teach kids patience and planning!


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