Insurance Blog

5 lessons being broke teaches you

Whilst in the middle of “being broke” lifestyle, you might be too absorbed to see the bigger picture. However, you can learn these valuable lessons, while you are trying so hard to make ends meet.

1.       Using Credit Cards Wisely

Credit Cards Are a Godsend, but only if you use them wisely. It’s easy to get up to the ears in credit card debt, but you can actually make it work if you use it the right way. You’ll be surprised at how handy it comes out to be.

2.       Investing

Investing is why people are rich.

You can also make it simple for yourself and start soon.  Because, like all those financial experts say, every day that goes by without investing is another day you’re not building wealth.

3.       Prioritising

Being broke, actually helps you narrow down the things that you need. You’ll keep telling yourself that you don’t need everything that you see in the store – and you’ll stop being an impulse buyer. It’ll dawn upon you that buying stuff isn’t going to make you happy.

It’s how you use it.

4.       Emergency Funds

Nothing teaches you the importance of savings like being broke!

You’ll learn that you’ll have to build an emergency fund – at least for your peace of mind.  When you’re living from pay check to pay check, you’ll know how important to have a backup or a cushion whenever you might face an emergency.

 Having a “just in case” fund” will relieve stress in your life, even if you never have to use it.

5.       Bad Habits are The Evil

We’ve written several posts about this, but addictions and bad habits can be extremely expensive.

Yes, you might be oh-so in love with your tequila and cigars, but when you’re broke – you’ll have no other option but to cut it out and you’ll be surprised at how much you can save.