Feeling broke is no fun, and it’s unfortunately not uncommon. According to a CNBC report, 25% of Americans worry either most or all the time that they won’t be able to cover their expenses on just their household income.

In addition to being a source of constant stress, feeling broke can also lead to some poor money habits. These range from avoiding paying bills until the last possible second so you still have the money for some other unforeseen expense to randomly splurging on items for yourself before you’re forced to spend that money on bills and other expenses.

Fortunately, you have the power to avoid feeling broke. The only trick is knowing the right steps to take.

Get Into the Right Mindset

The first step you need to take to stop feeling broke all the time is to change the way you think about money. Most people who feel broke all the time have a scarcity mindset towards money, which essentially means they treat money as though it could disappear at any time. In other words, you never believe you have enough money.

Instead, you need to have an abundance, or positive, mindset towards your money. The best way to do that is to get your finances under control. In other words, make a budget.

Unfortunately, there’s a stigma around making a budget that causes most people to immediately stop reading, close the tab and move on to some other financial blog post, but before you do, take a deep breath. While you’re doing that, look at all the ways budgeting puts you ahead of the game:

• It stops you from overspending, especially on things that aren’t important to you.
• It helps you prioritize your spending so you can focus on buying the things you really want.
• It helps you plan for your future goals, so you can start looking ahead instead of worrying about the present.
• It puts you in control of your money, so you know how much you’re spending and what you can save.

Create your new budget today. 

Avoid Money Traps

Money traps are those little ways that have you spending more money than you’d planned. They can range from simple triggers like impulse buying to more insidious traps, like outrageously high interest and penalty payments.

The best way to start avoiding money traps is to cut down on impulse or emotional spending. Always plan ahead when you go out shopping, and if you’re tempted to make an impulse buy, give yourself at least one day to think about it. Either the urge will go away, or you’ll realize you really do want the item in question.

Another money trap to avoid is not knowing how much an item really costs. Make sure there aren’t any interest rates, subscription fees or charges for parts that frequently need to be replaced. This advice also applies to credit cards and loans—especially payday loans.

One of the biggest money traps, though, is debt. If you’re in debt, you’re more than likely paying interest on the money you owe, as well as potential penalty fees if you’re late with your payments.

Make a plan to get out of debt as soon as possible. One of the best ways to do this is by using any surplus money you have in your budget to pay off debt, although you might want to cut back in other areas of spending to put even more money toward getting out of debt. It’s also worth pointing out that if you have multiple sources of debt you get a debt consolidation loan that will combine all your payments into one, as well as potentially lower the interest rates on the amount you owe.

Spend Less Money

If you spend less money, you have more money. Pretty simple, right?

Take out the budget that you made and look at how much you’re spending in each category. If you’re not comfortable with how much you’re spending in a certain category, lower that amount and put it towards a financial goal you’ve set for yourself, like padding out your emergency fund or buying a much-needed big-ticket item, like an appliance or a car.

You can also reduce costs by taking some actionable steps, such as:

• Buying used or off-brand items
• Negotiating for a better deal wherever possible
• Cancelling unused subscription services and memberships
• Prepare meals for yourself instead of eating out
• Reduce multiple categories by a small amount, like $5 or $10
• Look for better deals on insurance and cell phone plans

Earn More Money

Out of all the ways to stop feeling broke, this is probably the one that gets the most eye rolls. Sure, why not earn more money if it’s so easy?

Actually, there are a lot of ways to earn more money. These days, picking up a second job isn’t that hard. You can sell items on eBay or Etsy or do odd job

s that range from shoveling snow to doing minor repairs. Some people even make a living writing blogs!

You don’t have to get a second job, however. Paying off debt, for example, frees up a lot of the money you were making to your creditors and gives you more money at your disposal each month.

You can also earn more money by making your money work for you by saving and investing. By keeping a portion of the money you earn each paycheck for yourself, you can either put it in a savings account or, if your emergency fund is sufficient, you can invest it in a mutual fund or certificate of deposit.

Stop Feeling Broke With First Alliance Credit Union

Feeling broke is never fun. Fortunately, you don’t have to feel that way. If you take control of your money, cut back on your spending and avoid money traps, you’ll be well on your way to feeling like you have enough money to meet your needs.

If you become a member of First Alliance Credit Union today, you can take advantage of several tools to stop feeling broke. Our resource center has a free budget calculator that will help you create a budget, and you can keep your money in a traditional savings account with great interest rates. You can even talk with one of our lending advisors about whether a debt consolidation loan might help you pay off debt faster.

Interested in a special offer on opening an Exclusive Checking Account with First Alliance?