Living in poverty has a negative influence on our lives. It can cause us to make bad choices, miss out on many wonderful opportunities, and even prevent us from earning above minimum wage.
But the good news is that impoverished circumstances can be overcome. The first step is understanding your situation and identifying what you need to change. That will help you break out of the cycle and get an opportunity for a better life ahead.
Let’s assume that you realize that you’re broke for two reasons: you’re not earning enough and you’re not managing your money well.
Here are some suggestions on how to deal with these two problems.
You’re Not Earning Enough
There are a lot of things that can be done to increase your income. If you’re not earning enough because you’re unemployed or underemployed, then you need to address these issues.
If you’re out of work, it’s important to look for a job as soon as possible. It might be difficult to find a job in today’s economy, but with the right mindset and some hard work, it can be done.
The first step is to figure out what caused your unemployment. Perhaps you lost your job last year because you were in a retail job that was affected by the outbreak of the pandemic. Since then, you keep applying to retail jobs but can’t find one in your city.
The solution to your financial crisis is to not rely on your resume and current skill sets to determine where you should work. Instead, try another industry and learn new skills.
Perhaps you might consider the food delivery business. Many people still prefer to order their food online rather than going back to grocery shopping. That is one industry that flourished because of the pandemic because of the lockdown.
For instance, consider joining a food delivery service like DoorDash – just don’t skip out on getting DoorDash insurance. Commercial insurance provides its drivers with basic liability car insurance. The delivery company is typically protected from lawsuits if its employees cause accidents because the insurance covers the costs of general repairs to another driver’s car.
It’s also possible that you have a job, but you hate your job. Your job is contributing to your slipping behind financially. Not only does it pay poorly, but the working conditions and the dysfunctional management is breaking your spirit of initiative. Changing jobs, finding a better-paying one with a good company, is one way to fix your problems quickly. Certainly, there have been challenges in the job market, but that is not a reason to give up hope. Believe in the possibility of finding a better paying job where the company takes good care of its employees.
If you’re unemployed or underemployed, it’s important to stay motivated in finding a good job.
You’re Not Managing Your Money Properly
Two ways of managing your money better are to create a budget and save for emergencies.
1. Create a Budget and Stick to It
Start by setting a realistic monthly budget. Once you calculate how much money you have coming in, subtract your expenses such as housing, transportation, food, and utilities. You are left with the amount of money that you can spend on other things like entertainment or clothing each month.
2. Save for Emergencies
If something unexpected comes up like an expensive car repair or dental visit, cash flow is important so that you don’t end up dipping into your savings account or going into debt because of one expense that was unexpected.
Make Healing Your Financial Health a Priority
Many people who are broke most of the time feel that there is little they can do about it. This is a psychological condition called “learned helplessness.” People have failed so many times to change their circumstances in vain that they have now given up trying. If you’re in this situation, speak with a financial counselor offering pro bono consultations. They can help you improve your job-finding skills and give you tools to make it easier to manage your money.