Being broke is hard, but that doesn’t mean you can’t learn valuable lessons from it.
You’ll find that it has a lot to teach you – if you’re willing to learn.
The obstacles we face in life don’t have value unless we learn the lessons behind them.
So not having a lot of money can actually be a blessing in disguise, even when it doesn’t seem that way at first.
If nothing else, I hope that being broke brings profound changes in your life and teaches you things you just can’t learn anywhere else.
No matter what your financial situation is, you can always fix it.
So it’s time to celebrate like the hundred-aire you are. Why? Because you know you won’t stay like this forever.
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You will succeed in time. And like me, you too can become financially free.
So let’s get started!
1. You Can Do A Lot With A Little
When your money is tight, you start using more of what you have and buying less of what you don’t need.
You cook more at home and save the leftovers.
You become familiar with what Dave Ramsey calls the ‘beans and rice’ meal plan.
You realize that yard sales and secondhand stores have some pretty good quality stuff, and nobody can tell the difference.
You become used to making things cheaper at home – like laundry soap – for MUCH less than you’d buy at the grocery store.
You start shopping around your grocery stores flyer to get the best deal, and you buy extra of things when they’re on sale instead of paying full price.
You start saving while you spend, by using cash back programs like ebates to getmoney back on things you’d normally buy anyway.
No WiFi means camping inside Starbucks until they close, then when they close…camp outside. Why not?
You get the picture.
2. You Become Quick on Your Feet
“How can I turn this into a positive?”
“What can I do to adjust?”
“I need X amount of money to cover this, where I am going to get it?”
3. You Become Totally in Charge of Your Money
…instead of letting it be in charge of you.
“A budget is you telling your money where to go instead of wondering where it went.”
When you’re doing everything you can to break the paycheck to paycheck cycle, you first take a hard look at where all your money is going.
You quickly learn the difference between a need and a want, and you simplify your expenses in every way possible.
You track every penny because you have to.
If you don’t, you risk overspending in certain areas, and that can land you into trouble.
Having to decide between putting gas in your car or buying food is never a good place to be.
That only has to happen once or twice before your whole relationship with money changes.
And if you want to get your financial sh-t together once and for all, you learn to hold your money accountable.
4. The Importance of a Safety Net
You change your mindset from, “I can’t afford to save” to “I can’t afford not to.“
Sometimes it feels impossible to set money aside for an emergency fund.
In the past, I just always felt like I could find a better use for that money in the moment, rather than stashing it away.
That was, until, I had to get a root canal ($1,247) and all four of my car’s tires replaced ($750) within the same year.
That may not sound like much to some, but when you’re broke – it’s an emergency.
I had to put both of those emergencies on a credit card and it took me WAY longer than I’d like to admit before I finally had it paid off.
I learned my lesson.
Car repairs, medical bills, and emergencies happen. And when money is tight, it only takes one unforeseen cost to derail your entire financial life.
Even when you can only save a little money at a time – a small emergency fund is better than no emergency fund.
5. Small Sacrifices Add up to Big Rewards
You start looking for little ways to cut your spending.
Vacations aren’t an option.
You don’t step foot into a restaurant unless you’re working there.
You can’t remember the last time you went shopping for something other than basic necessities.
All of those sacrifices add up, and you end up saving more money than some of your non-broke friends and family.
And over time, you realize that those ‘sacrifices’ weren’t really even sacrifices at all.
You don’t need to go out to eat on Friday night in order to have a good time.
You’re fine with having one or two pairs of jeans, so there’s no need to shop for more.
And what’s the point of having 10 pairs of shoes?
6. You Assess How You Spend Your Time
You start engaging in activities that don’t cost much – if anything at all.
Sometimes you find yourself being that friend that never wants to do anything because you “don’t have the money right now.“
That feeling gets old quick. But, it’s a good way to find out who truly values you and who doesn’t.
Your real friends will understand that money is tight.
They won’t try to pressure you into wasting money that you don’t have.
The truth is, everyone wants to be your friend when you have a full tank of gas and the “I’ll get the pizza” kind of money.
The people worth spending your time on, though, are the people who are down to hang out regardless of how much money you have.
You don’t have time for negative people, wasting time, or pointless problems/issues.
You’re just trying to better your situation. Distractions must go.
7. Debt is a Vampire
And I’m not talking about the Twilight kind.
Debt steals your money. Making the minimum payments (because that’s all you can afford) is a great way to get nowhere fast.
You get sick and tired of being sick and tired and you want to break the pattern.
You resolve to come up with a debt payoff plan and put every extra dime towards your credit cards, student loans, and whatever else.
That new iPhone everyone is talking about?
Nope. It’s not worth going into more debt over. Say goodbye to those never ending payments.
8. There Are Lots of Ways to Make Money
You can only stretch your small paycheck so far.
But rather than complain about the little you have – you start finding ways to improve your situation.
After all, one of the best things being broke teaches you is how to hustle.
You sacrifice nearly all of your free time (with a job that’s not even in your field) so that you can pay the bills and build an emergency fund.
Plasma donations, cleaning houses, babysitting, and selling stuff you don’t need – show you that earning money is sometimes about thinking outside of the box.
Even if you get a second job that’s not the best – you just take what you can get.
Excuses don’t cut it. Staying up late, waking up early. No stopping. You’ll get there.
9. The Grass is Greener
…wherever you water it.
In every area of life – home, family, kids, marriage, work, or money – there’s someone that’s got it better.
But you don’t bother comparing yourself to those people. And you don’t hate them for it either.
You learn to fertilize your own grass, and one day, you’ll get there too.
Successful people become an inspiration instead of competition.
Because if you can learn something from someone else, then why would you compete with them?
Everyone loves the idea of an “overnight success.”
Remember what I said about learning to hustle?
Sometimes the journey it takes to get you where you’re going means more than the destination itself.
Because when you finally reach financial freedom, you’ve learned enough to make you a better, happier, and more well-rounded person.
Plus, you develop the skills and mindset to help other people.
You’ve learned A LOT along the way. Probably more than you’ve realized.
The school of hard knocks is a good teacher.
If you ever stop to think, “Why me?” you have to remind yourself that patience is important.
One day, you’ll look back on your humble beginnings and have a moment of gratitude for making it so far.
11. There’s Still Enough to Give
People think giving is just for the wealthy. Only the rich have extra money to give away, right?
Often you find that, despite being close to nothing, you still have more than enough to give.
Because when the money runs out – you learn to give something more meaningful than that.
A listening ear can go a long way. A smile can brighten somebody’s day.
A favor can help someone more than you realize.
Donating old clothes, toys, and books are also great ways to clear the excess and give to people who have less than you.
The ability to be kind doesn’t come from an excess of money but from a big heart.
When you realize that life is not just about you and only you, then you start to open your eyes to see that there’s a lot of people who share your same story.
Everyone is trying to better their life, live the best way they know how, and make ends meet.
12. Money Can Buy Happiness
Sometimes you’ll hear someone say, “being poor is a choice and poor people shouldn’t spend money on certain things because they’re already poor.”
Of course, you shouldn’t rack up debt to your eyeballs. Definitely not.
But even when you barely have any money, sometimes you need to spend a little on yourself to feel normal.
Or to not feel deprived, go insane, or prevent yourself from enjoying special moments.
And when you’re able to have a special moment or spend a little extra money for something you want – it feels great.
And as you dig yourself out of your hole slowly but surely, you start feeling better.
You build momentum to continue through your financial journey and you see the light at the end of the tunnel.
So to a certain extent, money does buy happiness.
And not in the I-got-a-brand-new-car type of way, but in the peace of mind type of way.
Nothing feels better than having enough money saved up to cover the cost of an emergency.
Or not having to worry about incurring overdraft fees.
You can finally afford to buy avocados without batting an eye.
Peace of mind and security are two of the greatest gifts you can give yourself and your family.
So in that sense, money definitely buys happiness.