Habits of People Who Are Never Broke

Have you ever wondered about people who always seem to have their finances together? 

The kind of people who have savings, they manage debt well and never live paycheck to paycheck.

What are the habits that they have and how are they able to do this?

In this blog post, I will walk you through the habits of people who are never broke. These habits stand the test of time and will help you to break down your finances into manageable chunks. 

In no time, you will be one of these people who are never broke.

Habits of People Who Are Never Broke # 1 – They Make A Budget

People who are never broke pay close attention to their money. One of the ways in which they do this is by making and maintaining a budget.

Budgets are critical in helping you to build wealth, in fact, they give you a framework from which to plan your money and make it work for you.

People who are never broke believe that a budget can be freeing and not restrictive and they align their finances to their budgets so that they do not overspend.

When creating their budgets, they focus on understanding their sources of income and then they match that with their expenses. 

They track these two pieces together each month and then build their financial plan around their budget.

They also know that budgeting can save them time and help them avoid expenses fees like late payments and credit card interest. 

They are able to do this because they put all their bills on a schedule so they know when they are due and the exact amount each month. They also use tools to organize their money.

So try budgeting and pay close attention to your finances and you will see the difference it will make for you.

Habits of People Who Are Never Broke # 2 – They Live Within Their Means

People who are never broke have one very important skill and that is, they live within their means.

They are aware of their budgets and they know their billing schedules and as a result, they know that the path to building wealth is knowing the gap between their income and their expenses and making sure that the gap is quite wide. 

One surefire way to do this is by living within their means or staying within their income.

In doing this, they are able to build their finances and stay in tuned in bolstering things like saving money and avoiding debt.

They are also very good at managing the way in which they spend money. They take a methodical approach to spending and always ensure that they are not spending money on frivolous things that do not add value to their lives.

Essentially, people who are never broke are not worried about keeping up with the Joneses. 

Instead, they stay in their own lane and are hyper focused on their financial goals.

They Save A Percentage of Their Income

Saving money is very important to people who are never broke. 

In fact, they make saving money a line item in their budget so that they are allocating funds specifically for that purpose.

They plan for the future so they divide their savings goals into different areas and save according to their life plans.

For example, they know that saving for retirement is critical, so they ensure that they have a retirement savings account that is paying dividends and gaining interest. 

If they know they want to invest in real estate or buy a home, they make it a priority to save money toward their downpayment.

They figure out how much they will need to buy the property and then they will start saving money for the downpayment.

They also have an emergency fund as they know that emergencies can happen and they want to be positioned to be financially capable if they experience any unforeseen situations.

All in all, saving money is a key principle for people who are never broke and they ensure that they follow this principle in a strategic way.

They Know How to Manage Debt

People who are never broke understand exactly how to manage debt. 

They may have some debt but they know how to use it to build wealth.

They are strategic with debt because they know that it can make or break their finances so they put extra effort into understanding their debt.

They also work very hard to pay off debt quickly and they focus on debt that may be deemed as “good debt.” 

In other words, they use debt to fund their asset-building activities and they know that sometimes they need to borrow money in order to make more money.

People who are never broke do not use debt to support a fancy lifestyle that they know they cannot afford.

They also do not go into debt because they want to be associated with a certain group of people or to be trendy.

Instead, they only use debt to fund activities that will pay off in the long run – whether it’s investing in assets like real estate or education. They use debt to make it beneficial for them.

They Value Financial Literacy

Financial literacy plays a central role in the lives of people who are never broke. 

They know that learning about how to manage money is critical to building wealth and they take the time to understand it.

In today’s world, knowledge and information has increased in leaps and bounds and they tap into this.

From listening to podcasts, financial based videos to reading books and attending financial webinars – these people know that bridging the gap with financial knowledge is what is critical to building wealth.

They Believe in Abundance

This is one of these habits of people who are never broke that is actually understated as personal finance has always typically been shrouded under the cover of frugality.

However, some of the most financially stable people are some of the most generous and giving folks because they simply believe in abundance.

They know money comes and goes and it is a tool to be used to fund your life goals. 

Therefore, they plan for the future knowing that money is just one aspect of it all – in fact they believe that their source is not their money but their ability to make it and make it work for them.

This is why they are able to survive any financial crises because they know that money itself is not what make them financially stable but it is their wisdom, knowledge and understanding of money that makes it possible for them to keep going.

They know that money is not the end all and be all. It is just one area of their life and the sum of their lives is measured in how they lived it and not what they had.

People who are never truly broke know that abundance is a blessing and a gift and it is possible to be achieved.

How Do I Become Not Broke?

It is possible to avoid being broke and though it may take some changes for those who have not cultivated this knowledge to take the right steps, it can be done.

The habits of people who are never broke are just that – habitual steps that they took to get to this position.

Why Do Most People Go Broke?

I have always believed that prudent financial habits can be learned and anyone can take the steps to become financially responsible if they take the time and they do it.

If you would like to learn more about how to build good financial habits, you can definitely do so by checking out our free resources here at Abundance of Jo and joining our newsletter. 

We also offer one-on-one financial coaching to anyone who would like to work with us to manage their finances and build wealth.

Tell me in the comments, which of these habits will you be following to avoid being broke?