• Picture this— You get paid, ball out for two weeks and end up broke for the remaining part of the month.
  • Then payday comes and you repeat the cycle until you end up being broke again.
  • If this is you, then you should pay attention to the following five habits that are ruining your life and what you can do to put an end to this terrible cycle.

Do you always find yourself going broke halfway into every month? Do you find yourself living from paycheck to paycheck, never having enough to sustain yourself? 

Are you constantly borrowing from your friends to survive until the next payday? Here is why and what you can do to fix it:

  • You overspend aka live beyond your means

Do you eat out every day? Does your phone cost more than your rent or salary? How often do you go out? Do you have to use ridesharing apps every time? Are you addicted to brands and have to buy a new Apple phone as soon as it comes out?

Answering yes to most of these questions means you are likely living beyond your means.

Solution

Start by splitting your salary in five ways, one for bills, the second for necessities, the third for your emergency fund, the fourth for leisure spending and the last one for the last two weeks before payday.

Next, create a budget for how you intend to spend this money and stick to it. Cut back on your spending. Instead of eating out every day, how about cooking more? Trust me, this costs less. It's okay to decline an invitation that might cause you to overspend. Save more by trading in your phone for something that does not make you broke. 

Stop going broke every month
Stop going broke every month

ALSO READ: A man who interviewed 177 self-made millionaires says they all started with the same savings strategy

  • You don't have an emergency fund

Making plans for how you intend to spend your money is great. But what happens when an unexpected expense comes? Are you prepared or will you need to take a loan? Borrowing means you are in debt and are already spending next month's paycheck.

Solution

This is why you need an emergency fund. This means you have something to rely on during real emergencies like hospital bills, car repair, or job loss without disturbing your budget.

To have this, set aside a particular amount every month, it could be N30k or N50k or even N100k depending on how much you make. You can keep this in a different bank account to avoid getting tempted or use a saving app that offers a safe-lock option. Don't forget to replenish your emergency fund every month.

Emergency funds come in handy when situations arises
Emergency funds come in handy when situations arises
  • You are addicted to shopping

Are you someone who has to buy something every time you visit an online store or the supermarket? Do you feel compelled to buy something even when you know you don't need it? This explains why you go broke every month.

Solution

Before you buy something, make sure you ask yourself if you need it. Get an accountability partner if you don't trust yourself. You should also consider creating shopping lists whenever you want to buy something. Write down all the things you need before you head out and make sure you stick to buying only the things you have on your list. 

  • You never use cash

Swiping a card every time you need to pay for something is stress free and great but it also increases your chances of overspending and going broke. 

Solution

Using cash, on the other hand, forces you to think about what you are about to do. There is something about taking out your hard-earned cash from your wallet, counting and then handing it over to someone else that makes you reconsider the purchase. 

Naira notes on display [Guardian]
Naira notes on display [Guardian]

This is why you should always withdraw exactly what you think you require for seven days every week and do your best to make it last. To increase your chances of only using cash, leave your card at home and don't use it until the next week.

  • You are simply not making enough money 

The last reason you are always broke could be because you are simply not making enough money to cover all your bills and expenses.

After studying millionaires for five years, Thomas C. Corley, a certified public accountant and certified financial planner, concluded that a single stream of income is not the way to be rich.

“Poor people have one income stream. Their eggs are all in one basket,” he said.

Solution

You need to get a better paying job, take on a side hustle or second job. You could also consider going back to school so you can get a higher-paying job in the future.

Implementing these strategies will give financial relief and help you better manage your paychecks.