12 Surprising Factors That Are Keeping You Broke


It’s a story all too familiar to many of us,

You work hard, live within your means, and yet still struggle to make progress on building wealth.

Unfortunately, the reality is that this “Broke Status” can feel like it has an unshakable hold on your finances.

But why does it persist? To answer that question, we need to delve into the factors to understand how financial roadblocks can be effectively overcome.

In this article, I will explain 12 reasons people stay stuck in their financial situation and offer insight into what to do going forward!

#1. Save Money Later

Photo Credit: leeser via Deposit Photos.

One of the biggest reasons people never build wealth is the false belief that they can save money later.

Right now, money might be tight, so they tell themselves that they will start saving in six months.

The problem is they keep kicking the can down the road and end up never starting.

#2. Used Cars Aren’t Worth It

Couples buying car
Image Credit: Shutterstock.

For some reason, broke people think buying a used car will cost them more in the long run.

This is usually because a major repair at one point costs them a lot of money, so they are afraid to buy used.

But a certified used car will save you thousands of dollars and rarely have major repairs.

And truth be told, even new cars can and do have major repairs as they get older.

So in the end, the new cars are costing more money, not used.

#3. Family Needs The Best

Photo Credit: Deposit Photos.

We all want nothing but the best for our families, but the reality is we can’t always give it to them.

Sometimes we have to make sacrifices.

Unfortunately, broke people don’t believe this and refuse to buy anything but the best.

This ends with them going into debt, which pushes them further behind financially.

#4. Never Will Be Good With Money

upset man at computer
Photo Credit: Shutterstock.

Broke people naturally aren’t good with money.

As a result, they think they will never have the financial skills to get ahead.

But many people with horrible money skills learn the basics and change their futures.

Broke people need to change this poor mindset and start thinking about the possibilities.

#5. I Earned This

Happy Girl in Blue Trench Coat and Sunglasses Shopping - Retro young woman in a raincoat in a clothing store
Image Credit: Shutterstock.

It’s great to treat yourself to nice things, but if you constantly tell yourself that you earned something to justify your spending, you will never be wealthy.

While you can use this thinking once in a while, you can’t rely on it day to day.

#6. Credit Score Is Important

Photo Credit: AntonLozovoy via Deposit Photos.

Here is the truth: your credit score is only critical if you need to take out a loan.

Sure, employers and auto insurance companies look at it, too, but you don’t need to base your life around getting a great credit score.

Some people try to “game” the system by thinking they need an auto loan, a mortgage, credit cards, and so on to prove they are creditworthy.

The truth is, you don’t need all these types of credit.

You simply need to pay your bills in full and on time.

Doing this in time will give you a good credit score.

#7. Higher Pay Means More Money In Taxes

stressed woman covering face
Photo Credit: focuspocusltd via Deposit Photos.

We all dislike taxes.

I can’t think of one person that enjoys paying them.

But the idea that you can’t work more because Uncle Sam will take more in taxes is foolish.

Yes, your tax bill will be higher, but you will earn much more money.

Remember, taxes are only a percent of your income, so it’s not like every dollar you make above a certain amount has 100% of it going to taxes.

If that were the case, no one would want a high salary.

#8. Don’t Need Insurance

clueless boss
Photo Credit: Shutterstock.

Along the same idea, no one likes paying for insurance.

You pay a significant monthly premium, and then it feels like nothing is covered 100%, so you have to pay more.

But the truth is, a lot is covered.

And without insurance, you could be in financial ruin if something happens.

This is why shopping around for insurance is vital to ensure you are paying the lowest amount for the best service.

#9. Keeping Up With Others

Photo Credit: pressmaster via Deposit Photos.

Another financial sin is trying to keep up with others.

Too many people broke and not-so-broke, try to do this, and it costs them.

In reality, many people who appear to have it all struggle financially.

We are influenced by what they show us in person and on social media, but we don’t see the whole picture.

#10. Too Old To Start Improving Finances

clueless older man
Photo Credit: Deposit Photos.

It doesn’t matter if you are 35 or 65; improving your finances is never too late.

The sooner you start, the better, but this shouldn’t stop you from starting.

After all, even if you are 65, getting out of debt and building some savings is better than the track you are currently on.

#11. Short Term Thinking

Man thinking
Image Credit: Shutterstock.

Many broke folks succumb to short-term thinking.

They have a hard time seeing the big picture down the road, so they make poor financial mistakes.

For example, you might focus on your monthly car payment instead of the total cost, which will cost you thousands.

Or, if you buy a rental house, you might focus on the monthly income and overlook that someone else is paying your mortgage, and you are building equity that way.

Work hard to start looking long-term, and your finances will improve.

#12. Can’t Look Past The Price Tag

Sales time. Confused caucasian guy choosing shirt at shop, free space
Image Credit: Shutterstock.

It’s wise not to overspend.

But some people take this too far and only buy the cheapest items.

Sometimes, this is a wise move, especially for one-time-use items.

But for everything else, it could spell doom.

The reason is that the cheaply made products won’t last, and in time, you spend more replacing them than had you simply bought the more expensive, higher-quality one.

Signs You Grew Up Poor

Photo Credit: olly18 via Deposit Photos.

Some of us grew up in a situation with financial struggles.

As much as we don’t want to admit it, some of the lessons we learned as kids still stick with us today.

This is good and bad. Good because we can be frugal. Bad because it holds us back from living the best life.

Here are some things you still do today that show you grew up poor.


Unique Savings Hacks To Try

Photo Credit: keeweeboy via Deposit Photos

There are many ways to save money, and you most likely heard many of them.

But not all of them.

I sourced the internet far and wide for expert approved saving hacks and came up with this list.

The only question is, which one will save you the most money?


How To Have Stealth Wealth

Photo Credit: IgorVetushko via Deposit Photos.

When we think of the wealthy, we think of big homes and flashy cars. But many millionaires have stealth wealth.

This means you would never know they are rich by looking at them. The benefit? People leave them alone.


I Need Money Now

woman reaching for money
Photo Credit: Shutterstock

Do you every say to yourself, ‘I need money now?’

Whether it is for bills or unexpected expenses, here is how to get cash fast.

In many cases, you can have cash in your hands the same day.


Learn How To Save $100K

Photo Credit: nikolodion via Deposit Photos.

Saving money can be hard, especially if you are looking to have $100K in the bank.

But while it feels difficult, don’t let this stop you. Here is how you can save $100,000 in nine steps.

HOW TO SAVE $100,000

Leave a Comment