Why do people live on the edge of being broke?

Question

Being broke means you do not have any money. I have lived on the edge of being broke for most of my life, what is it with me. I live week to week and can not save.

Answer 1

It's not because they don't make enough money, it's because they don't have the financial discipline to save money.  Most people will use their money to pay first (hopefully) for necessities (food, housing, utilities, etc.) and whatever's left over is spent on "wants" (entertainment, dining, travel, additional clothing, etc.).  No matter how much you make, you'll never run out of "wants" to spend money on.  The only way to break this cycle is to include paying yourself (savings account) along with the other necessities.  This will reduce the amount of discretionary funds available for spending on "wants", and that means maybe you eat out less often.  The savings account is for emergencies only (a new HD TV is not an emergency), or maybe for an eventual down payment on a home.  You should continue saving until you have three months of income in your account, and then start considering other investments (retirement accounts, etc.)

Answer 2

If you are happy don't worry about it and don't let society put pressure on you to live a certain kind of way just because they find it acceptable. If on the other hand you are not happy about it well you know what you have to do.

Answer 3

I think simply it's because we want too much. How many of us have cupboards full of clothes we don'tt wear (and don't wear OUT - We no longer mend, we're a throw away society), brand new cars which could have been second hand and just as nice, and home loans on houses with 3 bathrooms and holidays that we could spend closer to home?

Perhaps not any of those things, but the truth is... We want too much!!

My goal is to buy  a nice little house in a area away from the city, have my children wear out clothes (or hand-me-downs!!), have them play outside and not wanting the newest gameboy or whatever is the thing of the moment. Too many people put themselves under so much stress just to keep up with the Jonses.

Answer 4

I think a lot of people suffer from this malady. What I find to be useful is to keep track...for about one month....exactly what you spend money on....down to the last penny. Get an envelope and keep your receipts in it. At the end of every day...in a notebook...write down what you bought and how much you spent. At the end of the month you can see what you are spending money on that you don't need to spend money on. Some jobs can take out money before you get paid and put it in an account. If your job does this....have them take out a small amount...less than 20. You can also take that same amount (in case your employer doesn't do this)...get a big jar...and revert the money (20 or less) to change and put it in the jar. These are just some ideas...but you can think of others. Also...when you go shopping...don't buy something right away. Think about it for a couple of days...and then make your decision.

Answer 5

I think most people live paycheck to paycheck. I know I do. It is because we do not get paid enough money and the price if things are so expensive. Living in NJ I know that I live in one of the most expensive states.  

Answer 6

Most people these days live week to week and it is not easy to save.Money is not everything in life and I know you need it to live.If you really want to save some cut out things you do not need and there is a difference between need and want.We all need food,water,shelter and of course clothes but cable,cell phones things like that we do not need.I think we all have had to cut back.Good luck.  

Answer 7

Same with me i earn £1.5k a month and im always skint about 2 weeks in to payday! Im only 19 so love going out and buying clothes and lad things. !! I have just got into the habbbit of got money then spend it!  

Answer 8

Depends on how much money you make, how many bills you have, the kind of life style you live etc. If your unhappy about the amount of money your making go to a one year or two year college and get a degree/certificate and make more money & try to cut down on things that arent necessary.