The term “broke” is a term used to describe people with no money. While some individuals lack money due to their life situation, others are in debt as a result of their bad behaviors and habits.
Here are habits often found in broke people. These habits can enable you to easily identify broke people.
Habits of Broke People
Lack of Investment
Broke people do not make plans for retirement savings and investments. They also ignore business ideas with the potential to generate good income.
However, broke people are always ready to spend their income on trivial pursuits. They do not make plans for expenses, and they do not think about their future.
Make Use of Credit Cards
Broke people who do have the luxury of satisfying their every desire. And so they find ways to get what they desire. They do this with the help of credit cards.
With a credit card, people who are broke take out a loan to purchase useless things.
A person who frequently uses a credit card is broke and has no means to satisfy their desires without a credit card.
According to a research conducted by PBS, people with an annual income of $13,000 or less spend 9% of their salary on lottery tickets.
A person who invests most of their money in the lottery is broke and needs money that can solve his life problems.
They Take Payday Loans
The safe Small-Dollar Loan of the Pew Charitable Trust conducted research that revealed that over twelve million Americans take payday loans, and have paid an average yearly interest of 391 percent.
It was discovered that over $40 billion is issued yearly in loans and that over 22,000 payday loan outlets exist in America. This shows that there are broke people everywhere around you.
Only people with no source of daily income reach out to payday loans.
They Reside in a Rented Apartment
Broke people have the habit of staying in an improvised rented apartment.
They cannot afford to pay for furnished buildings, and so decide to settle in buildings with no modern amenities.
Stay in the Company of Broke People
People who are broke don’t aspire to be rich. And so they have the habit of keeping company with people of equal financial status with them.
Frequently Asked Questions
What causes people to be broke?
What causes people to be broke?
The majority of people are broke not as a result of their credit card debt, but due to their desire to spend money on irrelevant human desires.
In addition, they take out loans to acquire goods with depreciating value like automobiles, recreational vehicles, (RVs), boats, and more.
How Do You Live Being Broke?
To live with being broke, you have to carefully examine your take-home wages and expenses in order to afford to live through the month.
You can also seek for jobs, or start a freelancing career.
Why do most people stay broke?
Most people stay broke due to their lack of budgeting. According to a U.S Bank Research, only 41% of Americans adhere to a budget.
How Much Should You Make At 35?
As reported by the U.S Bureau of Labor Statistics, the median annual wage for people below 35 is $46,852 but the annual wage for people above the age of 35 is $58,812.
How Can a Poor Become Rich?
A poor person can become rich by avoiding or paying off their debts, spending low, and by investing.