Six Habits of Broke People

Habits of Broke PeopleWhat causes people to be poor? Is it a lack of income? There are broke people who make over $100,000 a year. There are rich people who made an average income their whole life. Are people poor because they lack a college degree? I know people with high school degrees who are wealthy, and I know people with advanced college degrees who are broke. Why is that? What causes people to be broke? Here are some habits of broke people.

1) Have No Budget

People without a budget are not intentional with their money. When an opportunity to spend money comes up, they spend their money. They do not have any idea where their money goes in a given month. As with all things, there are some exceptions to this, and I know some wealthy people who do not budget. Most people do not make enough income to compensate for not having a budget. Do not go through life without having a monthly plan for your money.

2) Spend too Much on Wants

Broke people cannot differentiate between wants and needs. They think they “need” new clothes or shoes or a new vehicle. They cannot get enough fun, so they think they “need” more. Having any and all these things are fine by me. Just know that they are wants and not needs. Broke people spend all their money on these things and live in the here and now. They have no concept of saving.

3) Do Not Save

Broke people do not save for emergencies or their future. It’s not because they don’t have enough income. Remember, there are broke people who make over $100,000 a year. Rich people find money in their budgets that they can save. They budget money to save, whereas poor people save what’s leftover, which is never anything because of their other poor habits. It’s like giving to your church or other charities: If you give first, there is always money to give. If you save first, there is always money to save.

4) Have no Financial Goals

Everyone wants to be well off. I have not met anyone whose goal is to be poor. However, neither of these are goals. Just wanting to be something and not putting in the required work does not mean you have goals or cause you to reach your goals. You need to have goals and do the required steps. Some of those steps are to stop doing all the other things that broke people do.

5) Pay Interest Instead of Earn Interest

Broke people pay interest. It doesn’t matter if it’s interest on credit card balances, payday loans, or vehicle loans. Instead of getting rid of their debt, they hold onto it and add to it. Their income works against them because they use it to take on more monthly payments and pay more interest. They buy as many things as they can “afford” with their income. Broke people need to get rid of their debt so that they can earn interest on their money and build wealth.

6) Stay in Their Comfort Zone

Broke people don’t want to be challenged too much. They want to stay in their comfort zone in most cases. Part of this is that they don’t want to learn anything new. They are ok with working at their dead-end job because that’s all they know. It’s ok to work at a job that doesn’t pay much, but it’s not ok to stay there if you want to get ahead. They don’t want to delay gratification in order to better their life in the future. Although they may work hard at their job, they keep doing the activities they are used to. Most of those activities keep them broke.


If you are broke, you do not have to stay this way. It doesn’t matter how much debt you have or what your income is or what you did in your past. When you stop doing the things that cause people to stay broke you can stop being broke. There are only four things you need to do to build wealth, but they are the opposite of the habits that keep broke people broke. Start doing the things that cause you to build wealth.

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  1. I was doing most of these before I got serious about getting out of debt. I always made a good income but I could never get ahead because of my financial habits. Thank you for the good information.

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