17 Simple And Practical Habits Of People Who Are Never Broke– A Must Read

17 Simple And Practical Habits Of People Who Are Never Broke– A Must Read

By Kyshi Team  •  October 02, 2022  •  mins

A financially broke person is someone who lives from paycheck to paycheck, with debts staring from every angle. Most often than not, this person can purchase a £35,000 house because they can pay in installments but cannot handle a £1,200 emergency. In simple terms, a financially broke person is one who is in debt and cannot afford essential things.

What causes people to be broke? It could be because;

  1. They do not plan for emergencies

  2. They do not have proper investments

  3. They do not have adequate savings

  4. They spend excessively 

  5. They are financially indisciplined

Now that we know the factors that cause people to go broke, let us look into the habits of people who are never broke. We believe these habits can curb the above mentioned factors.

Habits of People Who Are Never Broke

1. They Do Not Spend When They Can’t Pay

Couple complains because thet spent more than they could pay

You know that wise saying, “Never spend money before you have it?” Spending money you do not have will do you no good but incur debts and ruin your savings. It hampers your financial freedom. People who are never broke always avoid the urge to make excessive expenses and are conscious of their monthly budgets. 

2. They Make Friends With People Who Have Good Money Habits

Remember the saying, "Show me your friends and I will tell you who you are”? You can hardly have an undisciplined life when you have financially disciplined friends. So, stick with one or some financially disciplined friends and see yourself never going broke again.

3. They Stick To Their Budget

A woman ensuring to stick to her budget

Sticking to budgets is an essential habit because every financial plan begins with a budget. People with good money management skills create a monthly budget that covers their living expenses like rent, groceries, utility bills, lifestyle, and savings. After they have set up their budget, they ensure to stick to the budget. This way, their finances do not suffer, and they are never broke.

4. They Use Their Credit Cards On Rare Occasions

People who don’t go broke only use their credit cards on rare occasions. Some people even believe that their credit card is primarily designed for emergencies. An emergency fund which takes care of your emergencies should be set aside and separate from your credit card. However, even if you have to use your credit card, do not let it own you (i.e., you should control your spending).

5. They Do Not Shop By Impulse

Shopping with patience

Sometimes, marketing can be very compelling and you end up making unplanned expenses. However, most people with good money habits do not purchase items based on emotions. They rather think logically before shopping. Many of them spend quality time reflecting on a product or service's usefulness before spending their money. Most times, they give a 24-hour window to decide their choices.

6. They Have Strong Resilience ( A Can-Do Mindset)

A life that is worth living is worth living well. People who are never broke always have self-motivation. They have a can-do mindset and never relent on their short and long-term money goals.

7. They Look For Opportunities To Invest

A person looking for investment opportunities

Sometimes, you have to spend money to get money. This is why people with financial goals always look for means to invest their money. They are never always focused on just spending alone as there is no free money anywhere. They are intentional about investing in as many businesses as possible and expanding their portfolios. However, while looking for investment opportunities, they scrutinise the risks and consider their financial goals.

8. They Always Study About Finances

According to Frank Clark, the more you learn, the more you earn. This is why financial literacy is rated among the vital habits of people who are never broke. They are constantly studying different investment types, tax-saving strategies, money-saving hacks, and other self-improvement-related things. Also, they follow instructions from financial tutors and mentors.

9. They Monitor Their Daily Expenditures

A list of monthly expenditures

People who are never broke always monitor their expenses. Yeah, it can be challenging to monitor all your expenses, but it is pretty easy. How? Many people with healthy money habits usually work with applications that track every spending and help them with money management. These applications note every money they spend by cash, from their virtual wallets, bank cards, etc.

10. They Think And Act Like They Are Financially Free

Robert Coiler, a great American Author of the 20th century, quoted that riches and wealth originate from the mind. Your lifestyle reveals your mindset; therefore, behaving like you are financially free is not a fake life. Rather, it is a road to wealth and comfortable life.

11. They Always Set Goals

Man takes steps to achieve his goals

It is important to note that goal setting gives one an edge over financial difficulties. It doesn't matter if you want to purchase a house or a cheap household item; you need to set a goal toward it. The act of setting goals gives you a sense of financial responsibility. It helps you choose wisely and save for things that matter to you.

12. They Always Have Emergency Funds

You should never joke with an emergency fund if you are someone who never wants to go broke. An emergency fund keeps you away from debt and gets you prepared for unplanned expenses. While it keeps you from having your credit card as your only option in an emergency, it reduces your chance of taking back-breaking loans with high interest rates.

13. They Always Save Money

A lady holding up her jar of savings

Saving is one of the die-hard habits of people who are never broke. Jack Benny said, "Try to save money off the little you earn because it will be difficult to save money when you earn more." Little savings go a long way to building your finances and keeping you from debt. This is why you should save every little money you get in a savings account.

14. They Always Check Their Financial Status

People who take their finances seriously always analyse different aspects of their finances like their mutual funds, income, savings, investments, expenses, etc. So they do this to improve their strategies for their life goals. No one likes to be caught off-guard, right?

15. They Create Multiple Income Streams

A man happy with how much he made from passive income

Who does not want a steady cash flow? This is why you need more than one income stream. Kyshi has a passive income/ referral program where we reward you with up to £140 when you refer others to use Kyshi. All you need to do is to share your referral code with your family and friends, and it's all cash for you! Click here to understand how this referral program works and start sharing your code immediately.

Create as many passive income sources as possible, except if you want to go broke.

16. They Spend Little On Branded Products

It is exciting to wear and use branded products; however, it can suck your money faster than you realise. You can go for other products (food, clothes, etc.) that are as valuable as their branded counterparts but at lower costs.

17. They Define Their Needs And Wants

A man considering what he needs and wants

People with good money habits always differentiate their needs from their wants. Every spending they make depends on the situation they find themselves in. They always ensure to solve basic needs first before handling secondary issues. These people can hardly spend money unnecessarily when they have bills to pay.


Now that you have learned about the habits of people who are never broke, what's your next line of action? Practice what you've learned, right? While you practice these tips, you can read books and watch videos that teach personal finance and self-development. They will help you a great deal.

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