Many of us believe the only reason they are broke is the fact that they don’t make enough money, while that’s certainly true for many people. The reality is that we refuse to re-evaluate ourselves to improve our finances by making better life choices. I was definitely in this situation, convinced that I did not have enough money to purchase items I desired, but I realized that it was all about my mental attitude.

Here are 5 of the main reasons that were keeping me broke and how I fixed them.

The wrong friends

Friends whose mentalities differ from yours can impact negatively on your finances. Friends who tend to encourage you towards lavishness will only keep to you broke. I used to hang out with those type of friends, after which I realized they were impeding on my financial goals. I hence slowly distanced myself to end up with a few closed ones. Another way to fix your situation is by letting your friends know that you are on a tight budget. Perhaps you will realize you need to find yourself real friends who will understand and value money as much as you do.

Unable to manage money properly

I always broach the subject when discussing money. If you are earning enough but can’t handle it properly, you will still end up broke. Knowing how to manage your money is not solely about saving it. We should have a separate savings account to cover emergencies, making that money work for you. When I learned how to handle my income, I was able to create my business without having to resort to a loan.

Not learning new skills

If you are not adding new skills to your artillery and using them daily, you’ll be stuck inside a box with no chances for expansion. Learning new skills brings positive outcomes, which leads you to tackle all kinds of tasks that may result in a higher income. You can also make use of those skills for a side business of your own. I signed up for online courses to learn new skills and apply the knowledge to my own business. I increased my revenue and became more responsible for doing so.

A toxic work environment

Your job might be contributing to your broke status by not allowing you to expand or by not giving you a break. If your job is continually pestering you even when you are not at work or when you are at home on the weekend, they are using your personal time for their growth. It is a typical example of a toxic work environment that you may want to get rid of. To maximize your brain’s capacity in learning new skills, you need to cut off from your daily hectic work routines; get a break!.
Further, you could make use of your free time to delve into a personal project. Sadly, I had a terrible experience working in a toxic job, besides not teaching me anything new, nor improving me professionally or personally, the person in charge tried to take over my life. I could not make plans because I never knew when I was off since the schedule was made out one day ahead. Also, on days off, I used to receive many phone calls and text messages asking me to help someone or to answer questions they could have answered themselves just by looking at the spread sheet. Due to this situation, I was not expanding nor growing and was forced to quit.

Being broke depended solely on my income

Most of us believe just I did, that they are broke because they don’t earn enough money. The reality I learned was that I made enough to cover my bills, buy groceries, cover all the necessary expenses, and ended up with $100 in my pocket that I chose to waste. I chose to be broke. What you decide to do with those extra $100 is your responsibility. You may use this extra cash to purchase books and educate yourself, invest it on the stock market, save it for a side business, or even create a website to present your skills to the world. Whenever I have money left over, a little extra income I save it to pay off the mortgage loan my partner and I took out because that is the only debt we have. By paying more than we are supposed to pay each month, we lower the amount of interest we have to pay. That way, I spent on something that matters, and I can potentially save as much as thousands of dollars in the long run.

Being broke can be exhausting, demoralizing, and cause embarrassment. However, after learning all those lessons, you can now use your experiences to pave your way towards financial independence.