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How to Stop Being Broke

By Forrest | Last Updated: January 25, 2020

How to Stop Being Broke

Are you struggling to pay the bills or can’t afford the things you want? Being broke is not fun, and it comes with a lot of stress. There’s no sugar-coating it. So what can you do to stop being broke? In this post, we’ll outline a few steps you can take to make more money and find a path to financial freedom.

Take Responsibility for Being Broke

Being broke is a choice. And while for some it might be easier than others, at the end of the day, you make decisions every day that impact your future. For example, if you decide to watch television for an hour today, that’s one hour you could be spending dedicated to improving your future but you chose not to. That’s just one example that can quickly add up. It could be watching television, going out with friends, or spending time on social media. All of these distractions can keep you from achieving your financial goals. When you’re tired of being broke, you need to figure out what these distractions are. It might help to write them down in a journal. Figure out how much time you spend on these distractions each day and then total them at the end of the week. This will give you an idea of how much time you could be spending on your future. You do not need to stop these activities altogether. Maybe you try spending half the amount of time on each one or reallocating your time towards things you deem more important, like family or friends instead of television. The goal is to cut a few hours of your time on these distractions and dedicate it to improving your future.

Create a Plan for Your Finances and Future

The second thing you should do when you decide to stop being broke is to create a plan for your finances and your future. For your finances, you should create a budget in order to keep your cash flow positive each month. You should document all of your income and all of your monthly expenses so that each dollar is allocated towards your expenses or savings. If you have leftover money after subtracting your expenses from your income, this should go toward your savings or anything else to increase your income. For your future, you should plan a way to increase your income. It might be by going back to school, dedicating more time to your current job in hopes of getting a promotion or starting a business. No matter your scenario, there is always a way to make more money. You can learn these skills to boost your income or consider flipping furniture to make some extra cash.

Consider a Working More

If you’re working an hourly job and have the option to increase your hours, consider doing so to give your income a slight boost. Even if it’s just a few hours each week, this can add up and give your budget a positive cash flow.

Pick Up a Side Gig

If you don’t have the option to work more hours or you have a salaried position, you could consider working a side gig. Driving for Uber, doing photography, or dog walking are all examples of side gigs you could do to increase your income.

Consider Starting a Business

If you have a passion and are looking to make some extra money along the way, starting a business might be the perfect option for you. Some businesses take less to start than others, so you’ll need to either start a business with low start-up costs or find an investor to help you get started. There are many businesses you can start that have relatively low start-up costs. Some of the best options to consider are:
  • Blog
  • E-commerce website (online store)
  • Lawn care
  • Any other service businesses

Spend Less Money

The ultimate reason why you are broke is because you make less than you spend. In order to balance this out, you have two options. Make more money or decrease your spending. Usually, the second option is easier and can happen quickly. Below are a few ideas to help you spend less money.

Stop Eating Out

Eating out can cost you thousands of dollars per year. When you compare eating out to the cost of groceries, you’ll see that you can often cook the same meal for significantly less than if you buy it at a restaurant. Most people will eat out because of poor planning. To combat this, plan your meals ahead of time so that you have the ingredients and the time to make the meals you want to eat. Making meals at home is much cheaper than eating out, consider some of these cheap money-saving meal ideas to get started!

Cut Your Transportation Expenses

Between fuel, maintenance costs, insurance, and the cost of your vehicle, your transportation costs can squeeze your wallet. There are a few options to consider to cut your transportation costs.

Use Public Transportation

Do you have public transportation in your area? If so, consider taking a ride on the bus to trim your transportation expenses leaving with more money at the end of the month.

Get a Job Closer to Your Home

If the commute to your job is over 30 minutes, it might be time to starting looking for a new job. By finding a job closer to your home you can save time AND money.

Get a Fuel Efficient Car

Save on transportation expenses by purchasing a fuel-efficient vehicle. If you currently drive a larger vehicle like a truck or SUV, consider a smaller car or an electric vehicle to lower your fuel costs.

Find Cheaper Car Insurance

If you have a good driving record and still feel like you’re paying an arm and a leg for car insurance, start looking around. There is no cost to getting quotes from alternative insurance companies so try to find one that offers similar protection for a lower cost. We’ve found that Geico tends to have the lowest rate for standard protection.

Trim Your Mortgage or Rent Expenses

Your housing expenses will oftentimes be the largest portion of your budget. By trimming these expenses, you can have a drastic impact on your cash flow and it can be relatively easy to do. If you are currently renting a space, browse around to see if you can find another less costly space. If you own a home, consider refinancing your mortgage or moving into a new home that is less costly.

Ditch the Broke Mentality

Part of being broke comes with the mentality of being broke. You need to suppress this mentality and instead encourage yourself to get out of it using some of the advice above. If you’ve ever heard of the phrase “think it to existence” this is the same idea. By thinking you can get out of being broke, your chances of doing so will drastically increase. There are a few things you can do to help you get out of this mentality:
  • Visualize your success
  • Try meditating
  • Get support from others


Being broke can be demoralizing, stressful, and depressing. But don’t lose hope! There are many things you can do to boost your income and stop being broke and it all starts with your cash flow. If you spend more than you make, you’ll continue to be broke, so you need to find a way to reverse this. Whether it’s picking up a side gig or trimming some of your monthly expenses, there are multiple options to regain a positive monthly cash flow. In addition, you’ll need to get out of the “broke mentality” and into a positive and encouraging mental state. The chances are unless you were born into a family with too much money, you’ve been broke at one point or another and it’s up to you to stop being broke. What are your tips to stop being broke? Comment below!
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Forrest is a personal finance, entrepreneurship, and investing enthusiast dedicated to helping others obtain life long wealth. He owns several different blogs and is also passionate about health and fitness.
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