Are you tired of asking yourself, “Why am I always broke?” You’re not alone. Many people struggle financially, not because they are lazy, but because their income isn’t enough to cover their daily needs. The good news is that there are practical solutions to break the cycle of always being broke.
Why are some people always broke?
The main reason many people remain broke is simple: their income is smaller than their expenses. When your earnings can’t match your needs, you end up living paycheck to paycheck.
There are two ways to solve this problem:
Cut down expenses
Increase your income
Read Also: Why you’re always broke — and how to fix it (1)
The first option (cutting expenses) is temporary and has limits. The second option (increasing income) is sustainable and the best long-term solution if you want financial freedom.
1. Cutting Expenses: A Temporary Fix
Reducing your spending can help for a while. You can remove non-essential items from your budget, buy only what you truly need and control your spending habits.
But there’s a limit. You can’t cut out every expense — food, rent, healthcare, and other basic needs are unavoidable. Over time, this approach reduces your standard of living, which is why it cannot make you rich.
2. Increasing Your Income: The Real Solution
The surest way to stop being broke is to increase your income. Here are some simple and effective strategies:
a) Buy in Bulk to Save Money
Buying food and household essentials in bulk can save you up to 15%. This is one of the easiest ways to stretch your income without earning more.
b) Invest in Mutual Funds
Instead of letting your money sit idle, put it into interest-yielding investments like mutual funds. Currently, some mutual funds in Nigeria pay as high as 17% annual interest, and they are flexible enough for small, irregular savings.
Just imagine: you save 10% by buying in bulk and earn 17% from mutual funds — that extra cash can cover another basic need for an entire month.
c) Start a Side Hustle
A side hustle is one of the most powerful ways to increase your income. For example:
A young lady I knew worked a 9–5 job but sold footwear online in her spare time. While others spent hours on gossip blogs and social media, she used her time and data to grow her small business.
Some people learn new skills like tailoring, photography, or digital marketing and turn them into money-making ventures.
Others provide services such as car washing, laundry, catering, shopping, or home cleaning to earn extra income.
The Bottom Line
If you’re always broke, the solution is not just cutting expenses but finding sustainable ways to increase your income. From buying in bulk to investing smartly, and from side hustles to learning new skills, there are many ways to improve your financial situation.
To break free from the cycle of being broke, you must combine these strategies consistently and keep building your financial capacity over time.
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