7 Powerful Lessons About Being Broke and How You Can Use Them to Your Advantage

Being broke sucks. We know.

You’ve probably experienced it and I did too.

But let’s first define what being broke really is, so we’re on the same page here:

The state of having no, or very little money.

It is a really frustrating time for everyone but especially for many young adults  - be it a student or someone trying to make a living on their own for the first time, being broke can be a very valuable lesson.

I grew up in a household where we never lacked anything. I was well taken care of by my parents and lived off of their cost.

That was always taken for granted...

But leaving your family house and starting to make a living on your own is a game changer. Even though you might get some support, your parents hopefully don't want to spoil you too much.

If you’re lucky and your parents have the capabilities to support you during your studies, you will probably get enough money to cover the basics.

Helping you out in tough times, definitely takes away a lot of headaches, because, in some way, you have a backup, but that doesn't mean you can't be broke and face strong adversities.

Adversities you've never faced before.

All of a sudden, when it comes to planning trips, going out to eat and other adventures, the budget is getting real tight and you have to properly plan how to manage your last pennies to not go fully broke in the middle of the month.

The Struggles

Being short on money will surely be a never-ending pain, and at some point, it will affect other areas of your life.

• Less fun activities (that include money)
• Less variety when it comes to nutrition
• Always trying to find the cheapest option, which might result in neglecting your health
• Embarrassment

I say embarrassment, because you don’t want everyone to know how broke you really are. This is even tough when you start working at your new job because, in the first month, you won't get any money.

Your colleagues are grabbing food and you’re the only one that doesn’t join because you brought your own food (rice, broccoli, and dry lentils…)

Or, you buy a few drinks with your friends and your card declines at $5.

Been there done that.

But hey, as I mentioned before, it’s all about perspective.

Maybe you need to be in that position, so you can have this particularly uncomfortable experience, that is absolutely necessary to have at some point.

And I rather have it sooner than later.

So What Are the 7 Lessons?

1.Delayed Gratification

You only have a very limited amount of money to give away. What do you use it for?

After a while, you will recognize that spending your money on food at your local restaurant will not be in your favor. You’ll lack money for paying your bills or buying groceries.

Delayed gratification is the keyword here.

You’ll have to make some sacrifices because spending 15$ on a pizza will get you Rice, Pasta, Milk, and more. That can give you "rich" variety in your food preparation and your supplies will last longer.

You only cover the essentials. And yes, you will find out what your essentials eventually look like.

2.More Discipline

That might not come as easy if you’re struggling with addiction or severe struggles, but if your goal is to not be broke, you find a way to adjust your lifestyle.

As I said, you only cover the basics and implement delayed gratification. Choosing not to go out with your colleagues because you’re on a budget, and saying no to yourself when feeling the desire to “treat yourself” is developing self-control.

Those are the moments when you become more disciplined because you’re working toward something.

You learn how to say no, to others and yourself, because you start to understand what’s best for you.

3.Becoming Aware of Bad Spending Habits

When you lack money, you realize how different it was back then when you weren't as financially screwed. Then you take a look at your bank account and check where the money went. What did you spend it on?

So much unnecessary stuff. So many things only served short-term satisfaction and in the end, that's the behavior that got you into this battle in the first place.

Looking back, I realized that with the right knowledge, I could have put my future self in a better situation when times get tough. But I didn't.

But I didn't just become aware of my habits. I started to pay closer attention to other people's spending habits. Jesus...

Most people, including me, spend a tragic amount on food, clothes, and other things that only serve them in the short term.

5$ for a coffee here, 8$ for a sandwich there, all that adds up. Especially daily.

Your awareness shifts. And that's good.

4.Cancelling Unnecessary Subscriptions

Netflix, Hulu, and all those other random platforms that continually deduct $5-$12 from your wallet are a killer.

They will especially hurt you when your account says $100, you carefully plan out your next grocery shopping and meals, and all of a sudden that amount drops down to $68.

Subscriptions are quiet, that's what makes them so dangerous.

That's a perfect incentive to start sorting out the redundant and unnecessary stuff that will get you nowhere.

5.Great Source of Motivation

Being broke is a feeling you don’t want to live with. The constant worries and your happiness being so dependent on your paycheck.

Your life is too limited, and that’s what sucks so bad. It makes you think about your current situation very deeply and concluding that you do not want to live like that, is a big motivation to start looking for a way out.

You will focus on ways to generate money and that’s one of the most powerful lessons because it can set everything in motion.

By having clear intentions, you will be on the lookout for opportunities. Suddenly, there are so many of them, because now you are searching purposefully.

6.Understanding That Money Will Mean Freedom

Reminiscing about the times when you had money, makes you appreciate the freedom you had back then.

This is a big one because money will buy you freedom.

Imagine a world where you could just go out there and not worry about buying the $3 Ketchup instead of the $1 discounter.

A feeling that you're craving so badly (not just talking about ketchup here).

7.Becoming Minimalistic

Being on a budget teaches you how to only live with the essentials. You come home and there is your bed, a chair with a table, and your fridge that looks sad af.

And guess what, even there you will find beauty.

The few ingredients that you're able to afford can all of a sudden be combined in all sorts of ways.

Not only will you become minimalist and appreciate the little things, but your creativity will be enhanced.

Conclusion

To wrap it up, there is one more benefit there, besides building discipline and awareness.

You become more resilient.

Being broke will put your mental state through hard times but if you can see it as part of your life that’s necessary for growth, you can turn it around and take it as a lesson.

A moment that has some powerful learnings in it.

Learnings build character, because you learn how to suffer, say no, and put your basic needs first.

Your standard might be lowered but even that will reveal what you need to be happy.

Don’t put yourself in the victim position because there won't be anything of value.

See it as a temporary state that can be a huge stepping stone.

But you have to be willing to see it as a lesson and step your game up.