Broke and Poor are Not the Same.
I have always been pretty good in math, not great, but that has nothing to do with being a good money manager. In fact, it just means I hated being broke.
I wish you would quick saying you are not good with money because you are not good at math. Please quit saying you are poor when you are just not making wise money decisions.
Poor is living in poverty. You can be poor and broke but being broke does not mean you are poor. There is a huge difference between not being able to pay your essential bills and not being able to pay your premium cable bill with HBO/Showtime/Starz /Showtime, etc. on time each month.
Poor does not often allow you to put money away, especially in savings account or investment accounts. Broke is about how you choose to use your disposable income (DI) and this is one of the major differences. If you have money after paying for necessities then you have disposable income (DI). Have you spent money on Uber, hairstylist, happy hours, nail salons, mochas, premium cable, concerts, athletic sneakers, dining-out, movie tickets, contacts lens, etc., if so you are not poor (just say, “Ouch!”). These are examples of items that broke people are struggling to buy but it is not creating a financial hardship if you don’t get them.
I launched my company, JackieTrust®, a few years ago and I have substantially cutout luxury items. I do not deprive myself of enjoying life but I first pay for my necessities and then I put money away so I am not broke. I choose to stay away from adding any debt, I shampoo my own hair, I UberX, renegotiated my cable, and when I dine out I stay within my budget.
Broke often ebbs and flows with paycheck and you can work your way out of being broke.
- Make a budget and stick to it for a predetermined amount of time. There are many free websites and apps on budgeting.
- Pay your bills first, pay yourself second and then make wise decisions on using your disposable income (DI).
- Use the time to try low-cost/no-cost lifestyle activities. It’s a great way to venture out of your comfort zone and save money. Go to free museums, visit local historical sites, have pot lucks or movie night at home, read a library book, teach yourself something new, etc.
- Tell your family and close friends that you are practicing smart money management so they can become your support system and/or lower their expectations of how you use your DI.
- Take a part-time job for a predetermined amount of time to pay-off your debt and build your savings/investment accounts. FYI: I am not suggestion this so you have more DI.
JackieTrust® offers a gift giving service that teaches young people financial literacy skills. We deliver tangible gifts connected to shares of that company’s stock, helping educate young people (newborns through millennials) about how every day products can translate into corporate profits and building their wealth.
Please excuse any errors in this blog…