20 Ways to Stop Being Broke
Money struggles can feel never-ending, but being broke doesn’t have to be your reality forever. The truth is, small but intentional changes can completely transform your financial situation. If you’re tired of stressing over money, barely making it to the next paycheque, and feeling like you’re stuck in a never-ending cycle of financial frustration, it’s time to take action. Here are 20 practical ways to stop being broke and start building a life of financial stability and abundance.
1. Acknowledge Your Financial Reality
Ignoring your financial problems won’t make them disappear. It’s easy to avoid checking your bank account, push off opening bills, and pretend like things aren’t as bad as they seem—but that only makes the situation worse. The first step to stopping the cycle of being broke is to get real about where you stand financially.
Take an honest look at your income, expenses, and debts. Write everything down and assess where your money is actually going. No more guessing or assuming—hard numbers don’t lie. It might feel uncomfortable at first, but facing the truth is empowering because once you know where you are, you can start making real changes.
Give yourself grace in this process. Being broke doesn’t mean you’re bad with money or that you’ll never get ahead. It simply means you need a new strategy. Your financial past doesn’t define your future, and today is the perfect day to start fresh.
2. Track Every Dollar
It’s shocking how fast money disappears when you’re not paying attention. You might feel like you’re barely spending, but when you actually track every dollar, you’ll see exactly where your money is leaking. That daily coffee, the impulsive Amazon purchases, and those subscription services you forgot about? They add up.
Start by tracking every expense for a month—yes, every single one. Write it down in a notebook, use an app, or even keep a note on your phone. Once you see the full picture, you’ll probably find areas where you can cut back without even missing it.
This isn’t about depriving yourself; it’s about being intentional. You work too hard to let your money slip away without knowing where it went. Knowledge is power, and once you understand your spending habits, you can make better financial decisions.
3. Create a No-Nonsense Budget
If you don’t have a budget, you’re basically winging your finances, and that’s a guaranteed way to stay broke. A budget isn’t about limiting yourself—it’s about giving yourself permission to spend on what actually matters while cutting out the things that don’t.
Start with the basics: write down your income and list your fixed expenses like rent, utilities, and minimum debt payments. Then, allocate the rest of your money toward necessities, savings, and things that bring you joy (within reason, of course). The key is to tell your money where to go instead of wondering where it went.
Make your budget realistic. If you love getting your nails done, don’t eliminate it completely—just set a reasonable limit. The goal is to create a plan that works for your lifestyle so you can actually stick to it.
4. Cut Unnecessary Expenses Without Feeling Deprived
The idea of cutting expenses sounds miserable, but you don’t have to live on ramen noodles to save money. Small changes—like canceling unused subscriptions, making coffee at home, and buying generic brands—can add up to big savings without making you feel deprived.
Think about the things you pay for that don’t actually improve your life. Do you really need five different streaming services? Could you cook at home more instead of grabbing takeout? Cutting back doesn’t mean cutting out everything—it just means being smarter about where your money goes.
Make it a game. Challenge yourself to find fun, free activities instead of spending money. Swap expensive date nights for cozy at-home dinners, explore free community events, or start a clothing swap with friends instead of shopping. Being mindful of your spending can actually be empowering.
5. Adopt the 50/30/20 Rule
If you’re not sure how to structure your budget, the 50/30/20 rule is a great place to start. It’s simple: 50% of your income goes to needs, 30% to wants, and 20% to savings or debt payments.
This method helps you balance your finances without feeling like you’re on an extreme money diet. Your needs—like rent, groceries, and bills—come first. Then, you have room for fun money (yes, you deserve that!), and the last portion goes toward your future.
If your numbers don’t fit perfectly, that’s okay! The key is to adjust it to what works for your situation. The point is to create a framework that helps you manage your money intentionally.
6. Build an Emergency Fund
Saving money when you’re already struggling might feel impossible, but even small amounts can make a difference. An emergency fund is a financial lifesaver when unexpected expenses pop up—because they always do.
Start with a tiny goal, like saving $5 or $10 a week. The key is consistency, not perfection. Over time, that little stash will grow, and you’ll feel more secure knowing you have a safety net for life’s surprises.
Look for creative ways to save. Round up your purchases to the nearest dollar and put the extra change into savings. Use cash-back apps or sell things you no longer use. The goal is to start somewhere, no matter how small.
7. Stop Relying on Credit Cards to Make Ends Meet
Credit cards can feel like a lifeline when money is tight, but relying on them too much can make your financial situation worse. It’s easy to swipe now and worry later, but those “later” payments come with high-interest rates that keep you in a cycle of debt.
If you’re using credit cards to cover essentials like groceries or rent, it’s a sign that your budget needs adjusting. The goal is to break the habit of depending on borrowed money. Start by setting a limit on your credit card use and switching to a cash or debit-only system for everyday expenses.
If you already have credit card debt, focus on paying it down strategically. The snowball method (paying off the smallest balance first) helps build momentum, while the avalanche method (paying off the highest-interest debt first) saves money in the long run. Whichever approach you choose, commit to breaking free from credit card reliance.
8. Start a Side Hustle to Increase Your Income
Sometimes, cutting expenses isn’t enough—you need to bring in more money. A side hustle can be a game-changer, whether it’s freelancing, selling digital products, babysitting, pet-sitting, or driving for a delivery service.
Think about what you enjoy and what skills you have. Do you love crafting? Sell on Etsy. Are you good at writing? Try freelance blogging. Enjoy being on camera? Start a YouTube channel or TikTok side hustle. There are countless ways to make extra income from home.
Even if you can only dedicate a few hours a week, the extra money can go toward savings, debt payments, or financial goals. The key is to find something sustainable that fits into your life without overwhelming you.
9. Negotiate Your Bills and Lower Monthly Expenses
Did you know many of your monthly bills are negotiable? From your internet bill to insurance rates, you’d be surprised how often companies will lower your costs—if you ask.
Call your service providers and ask for better rates. Many companies offer discounts or promotions that aren’t advertised. If you’ve been a loyal customer, mention that and request a lower price. You can also compare rates from other providers and use that as leverage.
If negotiation isn’t your thing, try cutting costs in other ways. Downgrade to a cheaper phone plan, switch to a lower-cost gym membership, or cancel subscriptions you rarely use. Every dollar saved adds up!
10. Learn to Say No: How to Avoid Lifestyle Inflation
One of the biggest reasons people stay broke is lifestyle inflation—spending more as their income increases. It’s tempting to upgrade your car, move to a nicer apartment, or shop more when you make more money, but those habits keep you trapped in a cycle of just getting by.
The best way to avoid lifestyle inflation is to be intentional with your spending. Just because you can afford something doesn’t mean you should buy it. Instead, focus on saving or investing the extra income so you can actually build wealth.
Practice saying no to unnecessary expenses. You don’t have to go on every trip with friends, buy the latest fashion trends, or dine out just because others are doing it. Staying mindful about your spending will help you break free from financial stress.
11. Eat at Home More
Food is one of the biggest budget busters, and eating out regularly is a surefire way to stay broke. While grabbing takeout feels convenient, those small purchases add up fast.
Meal planning is a simple way to cut costs without sacrificing good food. Plan your meals for the week, make a grocery list, and stick to it. Cooking at home doesn’t have to be complicated—simple meals like stir-fries, sheet-pan dinners, and crockpot recipes can save you time and money.
Consider meal prepping on Sundays so you always have something ready to eat. When you have meals on hand, you’ll be less tempted to grab fast food or order delivery. Plus, you’ll eat healthier and feel more in control of your finances.
12. Break the Paycheck-to-Paycheck Cycle
Living paycheck to paycheck is exhausting and stressful, but breaking the cycle is possible with small, intentional changes. The first step is to build a small cushion—just $500 or $1,000—so you’re not completely dependent on your next paycheck.
Start by setting aside a little from each paycheck, even if it’s only $20. Look for ways to increase your income or cut costs so you can save more. Over time, your financial cushion will grow, and you’ll gain peace of mind knowing you’re not one unexpected bill away from financial disaster.
Breaking the cycle also means shifting your mindset. Instead of spending everything you earn, prioritize saving and investing. The more financial breathing room you create, the less stress you’ll feel about money.
13. Stop Impulse Buying with the 48-Hour Rule
We’ve all been there—seeing something online, adding it to the cart, and hitting “buy” before thinking twice. Impulse purchases drain your bank account and keep you broke.
One of the best ways to control impulse spending is to use the 48-hour rule. When you see something you want, wait two days before buying it. This gives you time to decide if it’s a need or just a temporary want. More often than not, the urge to buy will fade, and you’ll save yourself money.
You can also try keeping a wish list instead of immediately purchasing things. If something is still on your mind after a month, then consider budgeting for it. This habit helps you make more mindful spending decisions and keeps you from wasting money on things you don’t actually need.
14. Use the Cash Envelope System to Control Spending
If you struggle with overspending, the cash envelope system is a great way to keep yourself accountable. The idea is simple: withdraw cash for specific categories like groceries, dining out, and entertainment, and only spend what’s in each envelope.
When the money is gone, that’s it—no swiping your card or transferring more funds. This method forces you to be intentional with your spending and keeps you from going over budget.
It might feel old-school, but using cash makes you more aware of your spending habits. Physically handing over money feels different than swiping a card, making you less likely to make unnecessary purchases.
15. Pay Off Debt the Smart Way
Debt is one of the biggest reasons people stay broke. The more money you put toward interest, the less you have for saving, investing, or enjoying life. Paying off debt should be a top priority if you want to improve your finances.
There are two popular methods to tackle debt: the snowball method (paying off the smallest debt first for quick wins) and the avalanche method (paying off the highest-interest debt first to save money in the long run). Both work—it’s just a matter of what keeps you motivated.
Whichever approach you choose, make a plan and stick to it. Even if you can only afford to pay a little extra each month, progress is progress. Getting rid of debt will free up your money for things that truly matter.
16. Automate Savings So You Don’t Have to Think About It
Saving money is hard when you have to rely on willpower alone. The best way to ensure you’re building your savings is to automate it—set up a system where money moves into your savings account automatically, without you having to think about it.
Most banks allow you to schedule automatic transfers from your checking to your savings account. Even if it’s just $10 or $20 per paycheck, the key is consistency. Over time, your savings will grow without you even noticing.
You can also use apps that round up your purchases and save the spare change. These small, automated moves take the stress out of saving and help you build financial security without feeling like you’re sacrificing anything.
17. Find Free or Low-Cost Entertainment
Being broke doesn’t mean you have to sit at home doing nothing. There are so many ways to have fun without spending a fortune—you just have to be a little creative.
Look for free events in your community, such as outdoor concerts, farmers’ markets, or art festivals. Plan game nights with friends, explore local parks, or have a DIY spa day at home. Instead of going to expensive restaurants, host potlucks where everyone brings a dish.
The reality is, most of the best moments in life don’t come from spending money. By finding ways to enjoy life on a budget, you’ll not only save money but also realize that financial freedom isn’t about how much you spend—it’s about making the most of what you have.
18. Invest in Yourself
The best investment you can make is in yourself. If you’re tired of struggling financially, look for ways to build skills that can increase your earning potential. The more valuable you are in the job market, the easier it is to make more money.
Consider taking online courses, attending workshops, or learning a new skill that aligns with what’s in demand. Whether it’s improving your resume, learning how to code, starting a freelance business, or mastering public speaking, every new skill you gain increases your opportunities for financial growth.
Don’t be afraid to ask for a raise or apply for better-paying jobs. Many people stay broke because they’re afraid to negotiate their salary or seek new opportunities. Know your worth and don’t settle for less than you deserve.
19. Surround Yourself with Financially Smart People
Your mindset about money is heavily influenced by the people around you. If your friends are always spending recklessly, living paycheck to paycheck, or complaining about money without making changes, it’s easy to fall into the same patterns.
Start surrounding yourself with people who have good financial habits. Follow personal finance experts on social media, join online money-saving communities, or find an accountability partner who also wants to improve their finances.
When you’re around people who make smart money decisions, it naturally encourages you to do the same. Plus, they’ll inspire you with tips, strategies, and motivation to stay on track with your financial goals.
20. Develop a Wealth Mindset and Stay Consistent
At the end of the day, building financial stability isn’t just about numbers—it’s about your mindset. If you constantly tell yourself that you’re broke and always will be, that belief will shape your reality. But if you shift your perspective and start believing that you can create financial success, you’ll be more motivated to take action.
Developing a wealth mindset means focusing on opportunities rather than limitations. Instead of thinking, I can’t afford that, try asking, How can I afford that? Instead of feeling stuck in financial hardship, remind yourself that money is a tool, and you have the power to change your financial future.
Most importantly, be patient and stay consistent. Financial improvement doesn’t happen overnight, but with the right habits and a determined mindset, you’ll slowly build the life you want—one smart money move at a time.
Stopping the cycle of being broke isn’t about luck—it’s about making intentional choices every day that lead to financial security. Whether it’s tracking your spending, finding ways to increase your income, or surrounding yourself with financially wise people, each small step adds up.
Remember, you don’t have to be perfect—just be consistent. Start with a few changes that feel doable, and build from there. Over time, you’ll not only stop being broke but also create a life where money stress is a thing of the past.
Now, it’s your turn! Which of these tips are you going to try first? Let me know in the comments!
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