What Can You Do if You’re Extremely Broke?

In some cases, poverty is considered to be generational, and it is tough to break the cycle. However, in others, it is necessary to take accountability and control of your finances.

Before establishing a game plan to handle your financial situation, you must tackle the problem at the root of the cause.

Are you broke because you have a low-paying job? Or are you living outside your means and ignoring a full-blown shopping addiction?

If the answer is the latter, then the first thing you need to do is create a budget to deal with your spending habits and create boundaries for yourself.

Otherwise, getting a higher-paying job should be your priority – although that isn’t a problem that can be solved overnight. 

Keep reading to learn more about the steps you can take to learn more about what you can do when you’re completely broke!

Assess Your Current Financial Situation

How To Assess Your Current Financial Situation

To achieve financial security, it is imperative that you understand your current financial situation.

As previously mentioned, the only way to establish a game plan is to address the problem at its source.

To do this, first identify the problem. Be honest with yourself about where your money is going throughout the month, and take a close look at your bank and credit card statements.

How much are you spending on entertainment? Are you overspending on groceries? Are you simply living beyond your means because you lack the knowledge of how to live frugally in an environment where inflation contributes to rising food and housing prices?

Once you have a better understanding of why your finances are so out of whack, you can take the necessary steps to:

  1. Create a Budget
  2. For Better Spending Habits
  3. Learn How to Prioritize Your Life

Search For The Career Or Job That You Deserve

If you’re completely broke and need money, it may be time to search for a higher-paying job.

For example, you may be stuck in the same job for years without asking for a raise or learning to negotiate your salary with your current employer. 

If a raise is out of the question at your current job, start your search for a new one! In some cases, it can be advantageous to pursue a new career entirely.

Even though this may take some time and effort, it may be worth it in the long run in order to establish financial stability and create an effective emergency fund in the event that you become unemployed or have an unexpected expense arise. 

Get started on sites like Indeed or ZipRecruiter, and review your resume- it should be up to date!

Furthermore, to ensure that your resume is effective and suitable for the hiring manager, it is recommended that you research current resume trends.

Search For The Career

How Can I Create An Effective Budget And Get Better About Spending Money?

Learning how to create an effective budget and establish healthy spending habits can seem daunting, but with the right tools, it can be simple.

Start by setting a budget that is based on your monthly income and track your spending habits. You can use many different online platforms to create a budget!

Until you have a clear understanding of where your money is going every month, you will be unable to learn how to save money and deal with an unexpected financial emergency.

Then, set financial goals and create a plan to reach them. Whether your plan is to cut back on eating out or getting a new job, it is important to stick to your budget and not waver, even if you slip up every now and then. Finally, make saving a priority!

What Can I Do if I Am In Debt and Broke?

Working with a professional can help you create a strong plan to pay off your debts and get your finances back on track.

Additionally, being honest about your financial situation and tracking your spending habits can help you make more informed decisions with your money.

If you are broke and need to consolidate your debt, consider applying for a debt consolidation loan or a title loan from LoanMart