8 Things You Should Never Do If You’re Broke

Being broke is tough—it can feel like you’re constantly treading water, just trying to stay afloat. Every dollar counts, and even small financial missteps can have big consequences. Whether you’re dealing with a job loss, unexpected expenses, or simply trying to make ends meet, it’s important to avoid certain habits that can make your situation worse.

The good news is that by recognizing these common pitfalls, you can start making better decisions today to set yourself up for a more secure financial future. Here are eight things you should never do if you’re broke—and what to do instead to regain control of your finances.

1. Use Credit Cards for Essentials

When you’re broke, it’s tempting to swipe that credit card to cover groceries or bills. But here’s the thing—using credit for essentials can quickly become a dangerous habit. Before you know it, you’re paying interest on basic necessities, which only digs you deeper into debt. It’s a temporary fix that leads to long-term financial strain.

Instead of relying on credit, look for alternatives. Can you cut back on unnecessary expenses or find cheaper alternatives for what you need? Even if it feels like you’re just scraping by, avoiding credit will save you from dealing with overwhelming debt in the future.

It might also be worth calling utility companies or other service providers to ask for extensions or payment plans. You’d be surprised how willing they are to help when you explain your situation. Protect your future self by steering clear of debt traps.

2. Ignore Your Budget

When money is tight, it’s easy to avoid looking at your budget altogether. After all, it can feel overwhelming to stare at numbers that don’t seem to add up. But ignoring your budget won’t make the problem go away—it will only make it worse. If you don’t know where your money is going, you can’t make the changes you need to survive on less.

Creating or revisiting your budget is crucial when you’re broke. This isn’t the time to be afraid of tough decisions. By knowing exactly what you have coming in and what’s going out, you can make informed choices about where to cut back and where you might need help. Even small adjustments can make a big difference when you’re struggling.

Try breaking your budget down into categories like food, housing, and utilities. That way, you’ll see where you might be overspending and where you can reallocate funds. It might not be fun, but having a clear plan will give you peace of mind, even in tough times.

3. Make Impulse Purchases

It happens to the best of us—you see something on sale, or you’re just having a rough day, and a little shopping seems like the perfect pick-me-up. But when you’re broke, impulse buying can be your worst enemy. Those small, unplanned purchases add up fast, and before you know it, you’ve spent money that should have gone toward essentials.

Impulse buying is often an emotional reaction, whether it’s stress, boredom, or just the desire to treat yourself. Recognizing these triggers is key to breaking the habit. Next time you feel the urge to make a quick purchase, pause and ask yourself if it’s something you really need. If not, walk away or wait 24 hours before deciding. Most of the time, the desire will pass.

A great way to curb impulse spending is to leave your credit or debit cards at home when you go out. Take only enough cash for what you plan to buy, so you aren’t tempted by non-essentials. Saving a few dollars here and there can make a big difference when you’re on a tight budget.

4. Skip Creating an Emergency Fund

It sounds counterintuitive to save when you’re broke, but having even a small emergency fund can be a lifesaver. You don’t need thousands of dollars set aside—just starting with a few hundred can give you a cushion for unexpected expenses like car repairs or medical bills. Without a safety net, a minor emergency can completely derail your finances.

Building an emergency fund is easier than you think. Start by putting away whatever small amount you can—whether it’s $5 or $20 a week. The goal isn’t to save a fortune right away but to build a habit of setting money aside. Over time, it will grow into something substantial enough to cover emergencies.

Having this fund gives you peace of mind, knowing that you won’t need to rely on credit cards or loans when life throws you a curveball. It’s a proactive step that will make managing money less stressful, even when you’re broke.

5. Eat Out All The Time

Eating out is one of the biggest budget busters, especially when you’re already tight on cash. Those quick lunches, coffee runs, or takeout dinners seem harmless in the moment, but they add up quickly. When you’re broke, every dollar counts, and cooking at home can save you a significant amount of money each month.

Cooking at home doesn’t have to be complicated or time-consuming. Simple, budget-friendly meals can be just as satisfying as takeout, and they’re much healthier too. Try making a weekly meal plan so you know exactly what groceries you need, avoiding the temptation to eat out because you’re not sure what to cook.

It’s also helpful to batch cook and freeze meals for busy days when you might otherwise be tempted to order in. Preparing meals ahead of time ensures you always have something ready to eat without spending extra. By cutting down on eating out, you can save a lot more than you realize.

6. Ignore Your Debts

It’s easy to ignore debt when you’re broke—after all, how can you pay off loans or credit cards when you can barely cover your bills? But ignoring your debt won’t make it disappear. In fact, the longer you avoid it, the worse it gets, with interest piling up and minimum payments becoming harder to manage.

Instead of avoiding it, try to face your debt head-on, even if it’s overwhelming. Start by listing everything you owe, along with interest rates and minimum payments. This gives you a clear picture of what you’re dealing with. Then, prioritize paying off high-interest debt first to prevent it from spiraling out of control.

If you’re truly struggling, don’t hesitate to reach out to creditors or financial institutions. Many offer hardship programs or payment plans that can make managing your debt more feasible. Facing your debt may not be easy, but it’s a necessary step toward financial freedom.

7. Try To Keep Up With Your Friends

When you’re broke, comparing yourself to others can be especially damaging. Whether it’s friends going on vacations or coworkers driving new cars, it’s easy to feel like you need to keep up. But trying to maintain a lifestyle you can’t afford is a surefire way to stay broke.

Remember, appearances can be deceiving. Just because someone else seems to have it all doesn’t mean they’re not struggling financially too. Focus on your own financial goals and be proud of the steps you’re taking to improve your situation, even if they don’t look glamorous.

Instead of worrying about what others are doing, set personal goals that are realistic for your situation. By focusing on your own progress, you’ll feel more in control of your finances and less tempted to overspend just to keep up with others.

8. Avoid Asking for Help

It can be hard to admit you’re struggling, but if you’re broke, don’t be afraid to ask for help. Whether it’s seeking advice from a financial counselor, asking friends or family for assistance, or exploring local resources, there’s no shame in getting the support you need.

Sometimes, just talking about your situation with someone you trust can provide the clarity and encouragement you need to keep going. You might be surprised at how willing people are to help, whether it’s by sharing advice, offering resources, or just being a listening ear.

There are also plenty of community programs and organizations that provide assistance with food, utilities, or financial counseling. Seeking out these resources can ease some of the immediate pressure and give you a little breathing room to get back on track. Don’t hesitate to reach out when you need it—it’s a smart move, not a sign of failure.

When you’re broke, it can feel like your options are limited, but avoiding these mistakes can make a huge difference in your financial health. By being mindful of your spending, sticking to a budget, and building small habits like saving and avoiding debt, you’ll put yourself in a better position to recover financially.

Remember, everyone goes through tough times—it’s how you handle them that counts. With a little bit of planning and a lot of discipline, you can break the cycle and start building toward a more secure and stable future. Stay focused, stay positive, and keep working toward your financial goals.