Beating Broke

Things to Avoid When You’re Broke

November 25, 2019 By MelissaB Leave a Comment

Things to Avoid When You're Broke

Most of us have been there. You have three dollars in your checking account, and it’s five more days until payday. You may feel overwhelmed and not sure what to do. Unfortunately, many people in this circumstance feel that there is nothing to be done and, out of desperation, ignore their situation – continuing to live life as if their finances aren’t dire. However, all this does is make the situation worse. Instead, consider things to avoid when you’re broke so even if you’re not improving your situation, you’re not making it worse.

Things to Avoid When You’re Broke

Using Credit Cards

When you’re broke, credit cards can feel like a lifeline. For a while, at least until you reach your credit limit, you can continue to maintain your current lifestyle. But, this is a mistake! You’re broke! If you admit that and are frugal with your money, once your current financial hardship ends, you’ll be in a position to improve your finances. However, if you have to pay back thousands of dollars of debt, you’ll still be broke. Please don’t make this mistake.

Paying for Entertainment

Entertainment is expensive. Movie tickets cost $10 or more; a meal out costs $10 to $40, depending on where you dine. Netflix costs $13 a month. All of these expenses add up over 30 days. If you’re broke, don’t pay for your entertainment!

Go to the library and check out a movie for free. Attend a local free concert at the university. Invite friends over for board games.

Nobody says you can’t have fun when you’re broke, but find ways to be entertained that don’t cost any money.

Not Having a Budget

Burying your head in the sand is easy when you have no money. If you ignore the situation, it won’t exist, right? Wrong. Ideally, you should be budgeting every month, but this is even more important when you’re broke.

You have limited money, and you have to decide where that money should go. When you have a plan that you can follow, you’re much more likely to not overspend. Having a budget and following it is absolutely necessary when you’re broke so you don’t make your financial situation worse.

Hiding Your Situation

Don't Do These Things When You're Broke — Photo by Ali Tareq on Unsplash

Being broke is embarrassing, but being honest with your family and friends is the best way to handle the situation. If you’re not honest and you pretend that everything is fine, your friends may be offended when you repeatedly turn down invitations. If they know your situation, they may be more willing to find things you can do together without putting a financial strain on you.

Things to Remember When You’re Broke

Even though at the moment you may feel hopeless, remember that you’re likely not going to be broke forever. You will get a better job or have fewer expenses in the future (probably the former rather than the latter). Your financial situation will improve, but that improvement can come faster if you make sure to consider these things to avoid when you’re broke. Don’t make your future more difficult by making bad money decisions when money is tight!

4 Ways to Get Your Child a Christmas Gift If You Can’t Afford to Buy One

November 18, 2019 By MelissaB 1 Comment

My mom often tells the story of the first Christmas she and my dad had after they were married. They didn’t have any money, so they bought a sad, little Christmas tree on Christmas Eve that only cost a few dollars. It was so tilted that they had to tie it to the wall to make it stand up straight. She got my dad a warm wool pair of socks to wear when hunting, and he got her a tea kettle.

She laughs about that Christmas now. In retrospect, the story does have a poignant sweetness to it. However, that Christmas, they didn’t yet have kids.

4 Ways to Get Your Child a Christmas Gift If You Can’t Afford to Buy One

When you’re struggling financially, not being able to buy Christmas presents for your kids can be heartbreaking. If your money is stretched and you literally have nothing extra, there are ways to make sure your child has a gift under the tree.

Buy at Second Hand Shops or Thrift Stores

If you have a small bit of money to buy a gift, consider looking at thrift stores or secondhand shops. Or, you could turn in your kids’ outgrown toys and clothes for credit to purchase items at the secondhand store. Be warned, however, that secondhand stores usually pay just a pittance for items they buy, so you might not get much credit.

Exchange Used Toys with Another Family

Toy Exchange for Christmas Gifts — Photo by Shitota Yuri on Unsplash

Another idea that doesn’t cost anything is to exchange toys with family friends. You gather up the toys your children are bored with or have outgrown, and exchange them with another family who does the same. You can wrap these “new” toys and give them to your children for Christmas.

Sign Up for a Free Gift with the Salvation Army

The Salvation Army works hard to give a gift to each child whose family can’t afford to buy one. Go to the Salvation Army website, enter your zip code at the locations tab, and find a Salvation Army near you.

You’ll need to prove that you are indeed low income. You can do this easily if you’re receiving food stamps, WIC, or Medicaid. There are also other requirements you’ll need to submit, which you can find on the website or when talking to your local office. Be advised that many people sign up for this service in October, so time is of the essence.

Contact Your Local Church

Many churches run their own Christmas present giving operation. Contact local churches and tell them your situation. They may be able to help you or refer you to another church or agency that can.

Final Thoughts

If your budget is beyond stretched thin as my parents were on their very first Christmas, remember that there are 4 ways to get your child a Christmas gift if you can’t afford to buy one. There are many services available to help assist families in a bad financial situation so that every child can open a present on Christmas.

What other suggestions do you have for families who cannot afford a Christmas gift for their kids this year?

This December Save Money with No Spend Days

November 11, 2019 By MelissaB Leave a Comment

While the holiday season often means seeing family and taking time off work, it is also typically a time of high expenses. In fact, you may spend more in December than you do any other month of the year. All of this spending can lead to a holiday hangover in January as you look at your empty bank account and credit card balance. But it doesn’t have to be this way. This December save money with no spend days. You’ll be so glad you did when January rolls around.

This December Save Money with No Spend Days

How to Implement No Spend Days

No spend days can be a great way to save money. December is a challenging financial month, so it’s best to start having one or two no spend days a week in November. By December, you’ll have accrued extra money to use in the most expensive month of the year.

What Is a No Spend Day

Save Money by Not Spending — Photo by Clay Banks on Unsplash

On a no spend day, you don’t buy anything. No morning coffee at the local shop; no online purchases, no matter how great the sale; no lunch out with coworkers; no stopping by the grocery store for a few items—you simply do not spend money on that day. If you want to stretch yourself, try it for two or three days in a row.

Why Have No Spend Days in December

There are several reasons to have a few no spend days in December.

Learn to Rein in Your Spending Impulses

Money gets away from us easily in December. We feel bad that we may not have spent as much on presents as we perceive others have spent, so we add on a few gifts. We may want to give the hostess of a party a nice bottle of wine. We may want to tip the hairdresser more generously. On and on throughout the month of December, there are little and not so little expenses that chip away at our money.

A no spend day or two allows you a chance to take a break from spending. When you take a break from spending, you reset your mind. After a no spend day or two, it’s a little bit easier to not spend as much money. It’s a little bit easier to ask yourself, “Do I really have to (or want to) buy this, or can I do without or wait?” You may find waiting leads to never buying it. When you check your buying impulse, it’s not so strong, and you can experience more self-control. If you do still want to buy the item, you may be more inclined to look for ways to buy it for less.

Start the New Year without A Holiday Debt Hangover

Wouldn’t it be great if, come January, you open your credit card bill and are not faced with charges you can’t pay off? Wouldn’t it be great if your bank account balance was still healthy come January? Wouldn’t it be great if you bought gifts in a disciplined, conscious way so when the holidays are over, you just feel good about the holiday season rather than suffering from a holiday hangover?

It is possible to have a controlled spending holiday season. One way to jump start this process is this December save money with no spend days. Try to have one or two per week this month.

How do you keep your budget in check during the holiday season? What strategies do you implement? Do you have no spend days throughout the month?