Being broke is something that many people, unfortunately, experience at some point in their life. I’m not talking about being a little short on cash and needing to take out an emergency loan, but instead, those people who are flat-out broke.
The reason why they’re “broke” could be anything from living paycheck to paycheck, or maybe the person has credit card debt that’s just too high for them to pay off. In this blog post, we will discuss what possibly led you to your current financial situation and where you can find solutions as soon as possible.
Reasons Why You’re Broke
You Don’t Plan Your Expenditures
If you find that your money slips through your fingers quickly and you are left with very little or nothing to put towards savings and investments after every paycheck, then you might need some with budgeting.
Generating pay stubs is an excellent way to manage this because you’ll be able to see how much money is coming into your household each month from all sources of income. This will give you a clear picture of where your monthly expenses should be going and which areas need adjusting based on your situation.
You Compete With Everyone
You find yourself buying things you can’t afford to impress people you probably don’t even like. Keeping up appearances and competing with people when it comes to material things messes with your financial focus.
If you’re trying so hard to keep up appearances, you could overspend and end up going deep into debt to maintain it all.
You Have Unpaid Debts
You owe the bank, you owe your credit card company, and you might even be in a little to a medium-sized loan with some of those relatives who seem like they’re always asking for money.
If you have unpaid debt, your monthly take-home pay is less than what it would be if you made payments on all of your debts. That’s because the money you’re going to use to pay off those debts will no longer return to your checking account and, therefore, cannot be used for other necessities like rent or groceries.
You may begin your career in debt, in addition to earning less and spending more. Beginning behind, it may be difficult to catch up when paying your debts, a house, a vehicle, and all of your other costs. Student loan debt in the United States totals more than $1 trillion.
Overspending and way of life
In today’s world, consumerism is such a powerful notion. According to one statistic, 52% of Americans spend more than they make. The consumer spending surveys conducted by the Bureau of Labor Statistics reflect this view. Annual expenditures outnumber income in a variety of geographies, income levels, and demographics.
When the latest piece of technology reaches the market, customers rush to buy it. Wants have become considered requirements, resulting in lifestyle inflation and increased spending and decreased savings.
Ways To Make Money
Teach Others A Skill That You Have Mastered
Your artistic talent, athletic ability, or other skills might allow you to get paid to teach others. You could either go freelance or try getting help from an agency that matches you with students. By doing this, you can make some good money, improve your teaching abilities and help others at the same time.
Consider being a crowdworker
Don’t have developer skills and constantly think this is why I’m broke? Is it difficult for you to test websites? You may always become a crowdworker and make money performing lesser, less difficult chores.
Crowdworkers get money by completing tasks that do not require particular technological abilities. You’ll get compensated for stuff like:
- Watching a video.
- Document proofreading
- Form completion
- Image labeling
- Résumés are being updated.
There are several crowd employment sites with clients eager to hire pros for simple tasks. Microworkers is ideal for low-tech activities, whereas Clickworker is ideal for things like filling out surveys and gathering data for businesses.
Work as a transcriptionist
Do you have a keen eye for detail, a pair of headphones, and some spare time? A transcriber can be the answer to this is why I’m broke.
Most businesses do not completely trust automatic transcription services, thus there is plenty of place for people who can listen and type. Simply advertise your services on a marketplace such as People Per Hour, Fiverr or Upwork.
You may also bid on transcribing assignments on sites like Freelancer or advertise your profile on a specialized site like Scribie.
One benefit of working as a transcriber is the ability to transcribe on your own schedule (provided you meet the deadlines). You may also pick whether to transcribe audio or video (or both) and decline.
Purchase items for others
Shopping may be easier than it previously was, but it is still an activity that many people do not have time for. Fortunately, this implies that there are possibilities for you to earn money out there, If you are broke.
Instacart and Favor, for example, will pay you to pick up other people’s groceries and home goods. To deliver the products, you can drive, ride a scooter, or bike, or even stroll.
As a personal shopper, you may earn between $5 and $25 per hour. However, your real profits will be determined by the type of things you purchase, the distance you must drive, and whether you assist individuals in shopping by offering advice.
Shopping assistant – this is why I’m broke! When shopping, use the app to view product price trends in the past. You may buy things at the lowest possible price, saving you a lot of money.
Sell Your Stuff
When you’re broke, you need to take action quickly to earn money. Selling items around your home is one of the best ways to achieve that.
If you have clothing, electronics, decor, furniture, kitchen supplies, tools, and clothes that you no longer use, take some time to sort through those things and list them on sites such as Amazon or eBay, or even hold a garage sale. You can make your invoices online to help you manage your sales.
Get Paid To Drive For Uber & Lyft
If you have a car and know how to drive, you can get paid to work for companies like Lyft and Uber. This job can be a good fit for your situation because earnings are much more readily accessible.
Your income is available for cash out up to 5 times each day via Instant Pay. This allows you to pay for your gas expenses immediately and at the same time continue making more money.
Online photography sales
Can you take good photographs? If so, think about collecting and selling stock pictures, which businesses utilize for a variety of marketing and branding objectives.
Most websites that accept online submissions, such as Alamy or 500px, accept photos taken with a smartphone or a digital camera. However, you must ensure that each of your images fulfills the quality and content requirements established by the marketplace you pick.
For example, if you sell on iStock, you must sell the greatest quality images, videos, and graphics in order to earn a profit. Before submitting your images, check the pixel requirements for each site and the kind of content they accept.
Babysit Or Walk Dogs
Provide babysitting services during less common hours such as early mornings, events, or weekends so parents can enjoy their date night. You might be able to gain more clients during these times since most daycares are closed.
You can also take care of pets and walk dogs to make decent money. Creating a profile on Rover or Wag is a good way to let pet owners in the area know about your services.
Recycle Or Sell Your Trash
If you need some quick cash and have a bunch of garbage, try selling it. If that doesn’t work, take those to a recycling center where they’ll exchange what you’ve got for credits, then you can spend the credits on other items that you may find useful.
Get A Loan
You might be able to get a small loan from friends or family if they are willing. If not, consider borrowing from private lenders. Just make sure it’s a decent rate, and you’re not borrowing more than what you can reasonably pay back.
You might also be able to get a loan from small business lenders or even employers if they offer benefits like on-the-job loans, educational assistance for their employees, or other perks.
In the end, there are still several ways to make money even though you’re broke. The key is doing your research, finding out what works best for you, and having the grit and perseverance to get through your situation.