Being broke is okay. Being broke without a plan to break the cycle is not. Here are the 5 ways to know that ‘dude’ you are broke.

Living Paycheck-Paycheck: If you are spending every ‘dinero’ you take home as salary or wage, then sweetheart you are, by definition, broke. In other to avoid this obvious financial crisis waiting to happen, just do a budget analysis twice a year. Determine what you need and the unnecessary spendings to cut back on.

No Savings: I know, I know: you’ll start saving “tomorrow.” Isn’t that what you said yesterday? But of course, you know that tomorrow never comes, because tomorrow will be today tomorrow, and tomorrow’s tomorrow will never be today. Start today. Get a piggy bank and start saving because your life literally depends on it. To understand how to start saving, just watch this video I made on the simple steps to saving money.

Paying For Credit With Credit: Borrowing to spend is a common path to financial crisis. There I said it. Instead of borrowing from Paul to pay for a wedding you cannot afford and then borrowing from Peter to Paul, why don’t you start living below your means. Life is not a competition. Plan your spending and stick to it.

Credit Card Debt: Read my lips: There’s no such thing as “good” debt. It’s one thing to owe your dad money, but owing the bank or credit card company is never a good idea because now that involves interest on that debt and you can say what you want but the debtor will always be a slave to the lender. Click on this link to learn how to clear your credit card debt.

Never Discussing Money: Avoiding financial discuss is unhealthy in the long run. To avoid this, read books on getting your finances together, then talk about it with friends and family or through the comments below. Stop singing “Mo’ money, mo’ problems” to comfort your financially uneducated self. Just stop!

Relax, we’ve all been broke at some point in our lives. The most important thing is to have a solid exit plan, stick to it and you will be fine.

Although, if you have seriously thought about selling your kids…then you might be poor, not broke. Anyway, go ahead and share this article, and subscribe to our YouTube channel so you don’t miss out on the next video.