Habits of people who are never broke

Habits of people who are never broke

When it comes to finances, it is usually your money habits and not the amount of money you make that will determine the health of your purse.

Haven’t you ever come across people who earn a lot of money but are always broke? Making a lot of money but living from paycheck to paycheck. Why?

The answer is simple, they are yet to develop the right habits for handling their finances.

On the other hand, they are people who do not earn fortunes but are never broke. Their secret? They have developed and mastered the right habits for handling their money which allows them to enjoy a good quality of life without sacrificing their financial situation.

When it comes to personal finance, I have discovered that our decisions enforce either good or bad money habits.

If you dream of not being broke ever again, it is important that you start developing good money habits as soon as yesterday.

So today I will share with you 5 habits of people who have mastered their money and are never broke.

1. They live below their means

People who are never broke have mastered the art of living below their means.

This is pretty straight forward.

 If you are living above your means, you will always deplete the money you make and on top of that, you will have to borrow to be able to pay for your lifestyle. End result? Broke

If you are living at your means you will always spend all you make even if you are making a gazillion. End result? Broke

But if you are living below your means, you will be able to pay for your lifestyle and still have money to save for the future, or invest (so that it can make you even more money). End result? Not broke.

So, you want to stop being broke, start living below your means.

2. They use a budget

The second habit of people who are never broke is they always use a budget.

As John Maxwell put it

a budget is telling your money where to go instead of wondering where it went

John Maxwell

You will be surprised to see how much your money can do for you if only you learned how to budget it effectively. I kid you not, the right budget will make all the difference. Am speaking from experience.

Some years back I used to use a budget religiously. I would budget my every income and that helped stretch my income as far as possible.

But somewhere along the way, I stopped. Then life happened. I experienced changes that led to a decrease in my income and an increase in my responsibilities as far as money is concerned.  And soon I found myself living from paycheck to paycheck, sacrificing my financial goals.

So, I decided it was high time I went back to using a budget. That month, it was almost as if I’d had a raise. Not only was I able to honor all my responsibilities with ease, but I was also able to start saving again and getting back on track with my financial goals.

So, if you want to be one of those people who are never broke, budget your income.

3. They have multiple streams of income

in the morning sow your seed, and in the evening do not withhold your hand; for you do not know which will prosper, either this or that, or whether both alike will be good

Ecclesiastes 11:6

This text was written by the then King of Israel many years ago, a guy named Solomon. Solomon was one of the richest and wealthiest men to ever walk this earth. And if he says have multiple streams of income, I don’t know about you but I listening.

And apparently so are people who are never broke, because they too don’t rely on only one stream of income.

Simple math: having one source of income when you have multiple outlets for the same income is far from being wise with your money (unless of course, that one source of income is something that pays really huge). But for most of us, living on one income source hasn’t been working.

So, if you would like to stop being broke all the time, work on creating a second, third stream of income. Start a side business, tutor kids during the weekends, etc. Work on creating additional sources of income.

4. They have an emergency fund

Life is full of uncertainties, if not a matter of ‘if’ they will come but a matter of ‘when

When you least expect them, emergencies come. I guess that’s why they call them emergencies.  Your car breaking down, unexpectedly losing your job, a major health problem…. Things happen when we least expect them.

This is why it is important to have an emergency fund. These are savings that will financially cushion you through these hard times. And people who are never broke have this money secured somewhere.

Financial gurus say an emergency fund should equal to your six months’ expenses. But if you can’t afford that much, start with any amount you can afford. You can grow it over time. And also, having little is far much better than having not having anything at all saved for this purpose.

5. They get financially educated

My people are destroyed for lack of knowledge

Hosea 4:6

People say ignorance is bliss but I disagree. Ignorance will kill you.

People who are never broke agree with me because they make an effort to learn how best to manage their money.

If you aren’t intentional about getting financially educated, you will have to make every mistake, step on every financial landmine before you know to avoid them. You will have to learn from experience and experience is a rough teacher.

If instead you choose to learn from other people, what worked for them and what didn’t, you won’t have to lose your hard-earned income before you know to avoid that particular landmine.

If you don’t know where to start read this post on 3 books to set you on the right path towards financial freedom

Last thoughts

So those are some of the habits of people who are never broke. I believe we should all work on developing these habits ourselves.

I am thinking of coming back with part 2 on this topic. What do you think? Would you like to find out more habits of people who’ve mastered the art of managing their money? Share your thoughts in the comment section on whether I should do part 2 or not.

Remember, sharing is caring! Share this post with friends and family because if they stop being broke, they won’t have to be borrowing money from you all the time (wink wink).

Till next time,


habits of people who are never broke

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Hafiyu Bakali

nice article here, it will open up minds for the youngsters of our generation

Joseph George


This is an interesting article. I truly have learnt and inspired that the things that look basic and we ignore are the ones that will make the difference we are all looking for. You have made it easy to understand and I look forward to putting into practice the principles you have shared. I also followed to check the next article on finance education, I intend to get a copy of the books you shared so I can get an in depth understanding.

Thank you kindly

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