3 Common Reasons Why You Might Be Broke

Let’s say you have a job but your debts continue to pile up, regardless of how much you make. Even if you mean to save money or spend less, you never seem to get to doing these things.

In this case, it’s a good idea to look at all the things that you are doing and which contribute to financial instability.

That said, here are 3 common reasons why you might be broke:

#1: Did not Finish School

If your parents nagged you to finish college, they’re actually right. The difference between a high school and college graduate’s earnings is huge. But just going back to college doesn’t guarantee you a bigger paycheck. For this, you have to pick a career that offers high-paying jobs.

#4: Bad Habits

If you smoke and drink, then it should be pretty clear that your bank balance is not all that good either for the simple reason that these habits can be a drain. And there’s no fun in that either.

If you smoke a pack a day, that amounts to almost $1000 a month while drinking moderately amounts to $12775 a year. Dropping these habits means a healthier bank balance and you.

#5: Buy What You Don’t Need

An industry survey reveals that one out of five supermarket shopper end up buying something on impulse. While small things might not affect your bank balance, a series of them will certainly break the bank.

If you don’t know how much you are spending, track how much money you’ve spent recently on unwanted items. There’s no need to cut out all purchases but to set aside a budget for these after paying the bills and putting savings away.