How To Go Broke

Posted on Friday 07 October 2016


Learning how not to go broke is an odd idea, isn't it? Well, it's also a smart one. Too many people today keep repeating the same financial mistakes.

Many Canadians claim to have no time to budget, and no time or money to purchase software programs to help them manage their money better. While there have been improvements in recent times, there is still a significant number of people with this problem. As a result, some are one paycheck away from financial distress. This is why it's important to know what not to do if you don't want to stay on your financial A-game.

You can certainly buy nice things and not go broke, what's important is that you don't live above your means. Living above your means may make you temporarily happy. However, this will only lead to financial anxiety.

Never Go Broke Again


The following tips serve as a guide to improving your financial happiness. You can save and still live a fulfilling, satisfying life.

  • Stay out of debt- You should only pay for big purchases you can afford. It’s best to pay with cash! If you do use a credit card, pay it off in full each month. However, it’s understandable that some unforeseen emergencies may arise. In this case, it’s best to use direct lender services rather than take traditional loans.
  • Use one credit- It’s better to stick to one credit card and take advantage of the points you can earn on it. You should pay it off every month and avoid exceeding your limit. Having one credit card can be good, but more than one may put you in a fix if you don’t manage them well.
  • Don't pay bank fees- If you manage your money properly, you won't have to worry about bank fees. Don't go into overdraft, and if you have bounce protection, try not to use it. This may cause you to end up paying excessive fees for minor transactions
  • Stop being an impulsive buyer- Pay attention to your purchases and don't overindulge yourself, whether with food or your wardrobe. Here are some tips to help you eat well without going over your budget.

Use money-saving hacks- You should note that while saving money is important, saving up on resources is even more important. Little expenses can pile up to affect your financial future. A good way to do this is to use DIY hacks, reuse containers, and save leftovers. For instance, here’s a way to save your remaining Halloween candy for future use.