Whether you’re a broke college student or you’ve hit a rough patch late in life, it’s not unusual to go through a period of financial struggle.
In fact, it’s probably good for you in a lot of ways.
It forces you to develop good money habits — unless you want to be broke forever, that is.
Being broke also makes you become a better problem-solver.
Solving problems with money is easy. Aside from some fatal health conditions, it’s amazing how quickly money can solve most problems in life.
Although there are benefits to being poor for a period of time, it’s certainly not something to strive for.
A lot of personal development websites will tell you to be positive, focus on gratitude, practice meditation, and a bunch of other things that will help you in the long-run — but that doesn’t help you right now when you’re bank account is empty, and your bills are due soon.
Before you can thrive, you have to survive.
That’s what I’m going to show you how to do with a simple, but practical approach.
Step 1. Calculate Your Daily Cost of Living
Take a look at all of your monthly expenses and add them up.
Then divide that number by 30 to get your average daily cost of survival.
Since you’re broke, I assume you don’t have a lot of frivolous expenses in there.
Now for the sake of keeping things simple, let’s say you have an average daily survival cost of $50.
That means it costs you $1,500 per month for food, rent, bills, etc.
That number might be low, depending on your living situation and what not, but I’m just using an easy number for simplicity.
Now that you know how much it costs you to be alive each day, you have a better perspective on the money you earn and spend.
This is why financial advice that tells you to focus on saving as much as possible is terrible advice. There’s a limit to how much you can save because staying alive (food, water, shelter) requires money. Instead, you want to focus on earning more than you spend while using sensible spending habits.
Let’s say you have $150 in your account. That means you have a 3-day deadline to make more money.
That’s how you want to think of it. Can that $150 last you longer than 3 days? Probably.
But as you know, expenses tend to come all at once and since you’ve calculated your total monthly expenses you know that each day costs you $50, whether or not you actually spend $50 each day.
Read this section again until you’ve shifted your mindset.
Step 2. Find Income Sources
Now you know you need to make $50 per day bare minimum to break even.
That’s why we’re going to shoot for $100 per day because things come up and you want to average out at least around $75 per day so you can get ahead, instead of simply breaking even.
I’m going to assume you don’t already have a high-paying job or immediate access to a high-paying job or you (hopefully) wouldn’t be broke.
However, your best bet to solve the problem immediately is getting the highest-paying job you can.
Don’t let the gloom and doom of the news scare you — there are always money-making opportunities for a hustler. And no, I don’t mean selling drugs. (Not judging either way, though.)
5 Income Sources You Can Get Immediately:
- Service jobs — Servers and bartenders are always in demand, and you can earn decent money if you hustle. Most don’t, and that’s why most don’t earn much from those jobs.
- Uber/Lyft — If you have a car, you have an income source. All of the drivers I’ve talked to seem to enjoy their job. For what it’s worth, I’ve heard Lyft is better for drivers than Uber is, and I personally think Lyft is better as the passenger as well.
- Garage Sale Flipping — You would be shocked at how many people earn a great side income on the weekends by purchasing collectibles and other valuable items from garage sales and flipping them on Ebay and Amazon.
- Upwork and Fiverr — Freelance websites are great sources of income that require little skill or knowledge to get started. Do some Googling and find a service you could potentially offer and get after it.
- Odd Jobs — Craigslist is full of random odd jobs, temporary gigs, and manual labor work. It’s not glamorous, but it’s better than being broke.
Step 3. Work Your Ass Off
You know how much money you need to make each day.
You know of several places to earn that money.
Now it’s time to make progress or make excuses.
$100 a day. Whatever it takes. No excuses.
There’s nothing more for me to say.
Life is tough when you’re broke and you can’t pursue bigger things until you give yourself some breathing room financially.
Step 4. Change Your Habits
Once you’ve got your head above water, you want to ensure you never end up in that situation again.
You can’t predict the negative circumstances of life, but you can control your actions along the way.
Ultimately, your life is a result of your habits. That means both being broke and being rich are direct outcomes of your daily actions.
Now imagine a person who’s rich, in great shape, full of energy, and performing at the top of their game.
You know they must be working extremely hard, or they just know some kind of secret you don’t know.
The truth is they are probably working hard, and they probably know a few more tricks, but the real advantage is the discipline they have and their ability to accomplish so much every day.
When you think about all of the various success stories in all industries — from athletes to actors to entrepreneurs. They all seem to have amazing control of their habits.
99 Habits For Those Who Want it All
This FREE guide includes 99 action steps to get in shape, feel excited to start the day, and accomplish more in less time!
What do you think? Do you agree, disagree or have any thoughts to add? Let me know in the comments below.
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