Reading the last entry to the hive learners prompt made me realize that so many of us often go broke at some point even though we have a source of income, the same goes for some of my offline friends, it is now a common thing to hear people cry of "sapa" which is a slang word in my country meaning " a state of being broke or in a financial low moment". I thought this used to be a student thing since they mostly depend on their parents for their needs in school, but not anymore, it is now a general thing, both young, and old, salary earners, businessmen, and women etc all complain of being broke. No doubt the current inflation hitting us hard in my country Nigeria currently is what everyone put the blame on since our income remains the same, even becomes lesser for some. How then can we avoid going broke, the feeling of being broke is something no one likes to feel, always worrying about what you can or cannot afford, and living paycheck to paycheck stresses us out.

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It will interest you to know that we can actually work towards preventing ourselves from going broke, and I will be listing a few tips. Stay tuned as I take you through them, some of which we can apply to our day-to-day financial lives.

1 Being Frugal

Being frugal means not spending extravagantly, more like living below your means, this means that you should prioritize needs over wants, and be mindful of where your money is going. Look for cheaper alternatives and plan out your purchases to make sure you are getting the best value for your money. When we are frugal in the way we spend, we would realize that we still have something left to save rather than spending it all.

2 Budgeting

The importance of budgeting cannot be overemphasized as it helps us monitor our income and spending, this way we can place tabs on the expenses that are not necessary and also eat deep into our income, then take them out in the forthcoming month's budget, this can only be possible when we monitor our finances through budgeting, we can efficiently manage our money and ensure our expenses are in line with our income. We can also plan for upcoming expenses and have an idea of how much money we will have available for our needs and also have something left got savings. Ultimately, budgeting helps us make smart financial decisions and stops us from getting broke.

3 Get a skill/improve your skill

We live in a time where depending on salary jobs doesn't sustain anymore, imagine someone earning $100 before which wasn't enough to sustain his family, just managing, let's say he spends 50% on expenses, and now the double increase in transportation and prices of food items, that means there is nothing left of his salary, how then will he not get broke, it's best to diversify our source of income by getting a skill, you could even turn your hobby to something that can fetch you money. And if you already have a skill, why not improve on it? Doing all these will fetch us more income to curb the expenses and also make sure we don't get broke often.

4 Investment

What is the essence of making money only for the purpose of spending it immediately after it comes, the will only lead to being broke all the time, but when we set a goal and plan ahead of that goal, this will enable us, to spend, save and invest which is the right way money should follow rather than just spending alone. When we invest, we expect something in return, also some types of saving like the HBD savings on hive block hain with its 20% APR interest serve as a form of investment.
Investing helps us live a comfortable life in the future, as we can use the returns to get what we need. In addition, investing also helps us to create more wealth and make our money work for us. Planning and investing in the right areas can help us to create long-term financial security.

5 Avoid debts

Do you know some salary earners have already exhausted their salaries on debt before their payday, and start on another roll of debt the next month, this habit will forever make them broke, This is a dangerous cycle that can lead to financial ruin. It is important to create and stick to a budget and manage debt responsibly to avoid this situation. Additionally, it is important to build an emergency savings fund for unexpected expenses. Setting aside a portion of your salary each month to save can help prevent financial hardship in the future. Finally, it is important to seek help in the form of financial advice if you are feeling overwhelmed by debt, also staying committed and disciplined in the way you spend should help break this cycle. Saving money should also be a priority to ensure financial stability.

CONCLUSION

By following these tips, looking for new opportunities to increase our income. Investing in side gigs and freelancing projects are great ways to utilize our skills and earn extra money. By taking these steps, we can ensure financial stability and security and put an end to being broke.

Thank you for reading.❤❤