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A recent survey found that 63% of Americans live paycheck to paycheck.  If you’re sick and tired of being broke, it’s time to look at why you’re always strapped for cash and what you can do about it.  Although making more money may seem like the obvious solution, it won’t do much good if you have the same bad money habits.  Here are some common reasons why you’re always broke.

You’re living beyond your means

What happens when you spend more money than you bring home?  That’s right ladies and gentlemen, you end up in the red.  Don’t let the fear of missing out put you in a hole that you can’t dig yourself out of.  Despite what you see on social media, the average Joe cannot afford to eat out every single day or travel at the drop of a dime.  Either that person planned ahead and saved their coins or they’re going broke trying to fit in.

You don’t have any savings

Twenty-five percent of Americans have no emergency savings.  This is far less than the minimum three months’ worth of expenses that many experts recommend.  Saving now will minimize the amount you have to borrow when something unexpected pops up like a flat tire or broken heater.  The best thing to do is automate your savings.  Simply schedule recurring transfers from your checking to savings account for a specific amount.  You can have money transferred weekly, biweekly or monthly depending on how often you get paid.

You need to earn more

If you’ve trimmed your budget down to the bones and still can’t make it work, chances are you just don’t earn enough money.  So, look for ways to increase your income.  You can get a second job or pick up a side hustle such as tutoring, doing makeup for special events, party planning or mowing lawns.  There are numerous side hustle ideas floating around the internet, find something that fits your passion and turn it into a small business.

You ignore your credit card debt

According to Bankrate, the average American credit card debt is $5,221.  Waving a magic wand isn’t going to make your debt disappear and neither is ignoring it.  Your debt is just going to continue accumulating late fees and interest until you do something about it.  So, take charge today.  You can get out of debt by paying more than the minimum, committing windfalls to your debt or following a debt repayment plan like the snowball method.

You buy things impulsively

A Slickdeals poll found that Americans spend $314 per month on impulse buys.  That’s $3,768 you’re spending annually on things you probably don’t need.  The next time you’re tempted to buy something that wasn’t originally on your shopping list, take a picture of the item then put it back on the shelf.  Give yourself 24 hours and if the item is still on your mind, you can go back and get it.  Chances are you won’t be heading back to the store though.

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