Will I Ever Stop Feeling Broke?

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Quote

"Money didn't make me. Those broke days did." - Fetty Wap

Broke On The Brain

Today we're going to address the feeling of always feeling broke.

This is important because one has to be able to enjoy their life without worrying about every dollar.

Unfortunately, many go to one extreme. They either pay zero attention to how they are spending their money, or they track every nickel to where they feel guilty for adding the gum pack to their groceries at checkout (you know who you are).

When you think about it, understanding your finances can come back to bite you since you are ultra-aware of when you break your own rules.

At the end of this post, you'll feel less like Sam Bankman-Fried (who lost $15 billion in a week) and more like a snazzy Warren Buffett.

What Is Broke?

Coming from one who is less than six months into their full-time role I've realized one thing. Life can be damn expensive. Even as someone that claims to be responsible and saves/invests 50% of their income, I still find myself frustrated.

This feeling leads one to ask the question...

"Will I ever stop feeling broke?"

To understand this better we need to define broke. This answer will vary from person to person. The kid who grew up in a household that didn't know if the lights would be on next week has a different definition of broke than someone who grew up in a middle-class suburb.

Though no matter the definition, the solutions are the same.

1. Reduce your costs

2. Make more money

Let's talk about reducing costs first. It's obvious, spending less is the quickest way to free up extra cash. While this is covered by every "finance guru" on Twitter they leave out an important detail.

When one begins to cut down on costs they naturally fall into a "scarcity mindset." This isn't a bad thing, as a sacrifice is required, but it can be taken overboard to where you end up missing out on experiences and enjoyment. It's a limbo.

Second off, making more money also has its faults. Think of weightlifting. You spend hours a week crafting your routine, counting calories, and prepping meals to continue getting stronger. At what point though does the extra 5lbs on bench matter? Whether you bench 300lbs or 305lbs it's still impressive (coming from someone who doesn't bench 300).

The same is true for making more money. Once you reach a certain income is it worth putting the time in to earn the next dollar?

This points back to knowing your why.

Find Your Why

On the finance side of things your "why" might be to retire early, have $1,000 a month in dividends, pay off those student loans, or fund your kid's college. For each of these, you likely have a plan. This could involve maxing out your Roth IRA, contributing to your child's savings, paying $100 extra on your loans this month, and the list goes on.

The lesson here is this...

Whatever your plan is, don't brush off hitting the small goals. At the end of the day, you're one step closer to accomplishing your why.

Cheers To The Process

In short, applaud yourself when you max out your Roth IRA, have that dividend come in, or hit your saving goal for the month. Especially for the twenty and thirty somethings out there.

Bo Hanson from The Money Guy Podcast said it best.

As long as you are on the path to satisfy your "why" you already have your foot on the gas.

It just might not become obvious till you cross the finish line years from now.

Conclusion

Getting the "broke" monkey off your back can be challenging.

Realize you are being responsible, and crack a cold one in celebration next time that automatic contribution hits the portfolio. Maybe you do have this figured out...

Cheers, Cade. 🍻

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Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you soon!