How to stay broke?

start tomorrow
read books and do nothing
take advice from poor people on how to get rich
fail once and quit forever
play victim and blame your circumstances or other people
expect the government to save you
value the opinions of others over your own
make promises and break promises
wait for perfect conditions (very relevant for investing in current economic conditions)
pirortise looking rich over being rich
avoid working on what matters the most
stay busy and accomplish nothing
say you are going to do something and don’t
do “your best” rather than “whatever it takes”
assume you are always right
always take it personal and react emotional
increase your income, however increase your expenses even more
stay undecided
talk more and do less
start something new today, start something new tomorrow
make a mistake and repeat the mistake
find something that works and stop doing it
compare yourself to people poorer than yourself to feel better
do what everyone else is doing and expect to get something different
do things that make everyone else happy
show up late or not at all
never prepare
think that starting at zero means something different for you than every other person who started at zero and made it
see someone make a mistake and do the same thing
think that someone has to lose money for you to make money

It is not helpful or productive to think about ways to stay broke, as poverty can be difficult and challenging condition that can have negative impacts on a person’s quality of life and overall well-being.

However, you can learn just as much from broke people as you can from the wealthy.

The thing you are after and the opposite are highly related. Do not overlook the lessons you can learn from broke people.

It is important to focus on ways to improve your financial situation and increase your income and financial stability. This may involve setting financial goals, creating a budget, saving money and finding ways to increase your income through education, training or career advancement. It is also important to be mindful of your spending habits and to make smart financial decision that can help you achieve long term financial stability and success.

A financial planner can help people who are struggling financially in a plethora of ways, including;

Creating a budget
A financial planner can help you create a budget that aligns with your financial goals and helps you make the most of your income. This may involve identifying areas where you can cut back on spending, finding ways to increase your income, and setting financial goals to help you stay on track.
Debt management
If you have a lot of debt, a financial planner can help you come up with a plan to pay it off. This may involve negotiating with creditors, consolidating your debts, or finding ways to reduce your interest rates.
Building a emergency fund
A financial planner can help you create a savings plan that allows you to set aside money for unexpected expenses, such as a car repair or a medical emergency. This can help you avoid going into debt when unexpected expenses arise.
Investing
A financial planner can help you understand your investment options and create a plan that aligns with your financial goals and risk tolerance.
Setting goals
Guiding you through a process to identify your financial objectives and create a plan to achieve them. Starting by identifying your values and priorities, assessing your current financial situation and determining your financial goals.
Keeping you accountable
A financial planner can help keep you accountable by providing ongoing support and guidance as you work towards your goals. Including, regular check-ins, goal tracking, adjusting your plan, providing resources and tools.
Building a plan to help you achieve your goals
Your financial planner can help you develop a plan to achieve your financial goals, which may include setting specific targets, creating a budget, building an investment strategy, constructing a portfolio, identifying ways to increase your income and ensuring your income and assets are protected against injury, illness or death.

As financial planners, it kills us seeing people that are on significant incomes, yet they are still living pay check to pay check, whilst racking up large amounts of personal debt. Your money mindset does not change based on your income, you need to work on this and what you value.

We recently had a 25 year old father of two visit our business. Many would believe he is doing well for himself, earning over $150,000 per annum. However, he has over $25,000 in personal debts which continues to hamper his ability to support his family, secure a home for them and give them the life he wants for them. This prospective client has $3,000 worth of debt at an interest rate of 48%. They secured this loan to ensure they could pay their rego and insurance on a car that they owe $20,000 on.

Another recent example is a 54 year old sparky, whom works in the mines on $250,000 per annum. They have a boat, three motor bikes and four cars.

They have $50,000 in car / personal loans, in addition to a $300,000 mortgage.

The thing that really stuck out, was that they purchased their home 30 years ago for $140,000 and have been using their mortgage like an ATM for the past 30 years.

We need to reiterate, that a high income and/ or being highly educated does not mean you are automatically good with your money. Furthermore, having a “good” income does not change your money mindset (or money story). In addition, a “high” income or being highly educated does not mean you are wealthy.

However, a Newcastle Financial Planner can provide valuable guidance and support to help you improve your financial situation and achieve long term financial success.