How would you describe your finances? Are they in shambles, are you Aimlessly Broke, consistently working on them, or are you a financial rockstar? No matter where you currently sit, your financial picture is continually evolving. When it came to my finances, I fell into two categories.
I was either Aimlessly Broke™ or Broke on Purpose.
Aimlessly Broke means that you don’t have any direction with your finances, and you’re just living life day to day going with the flow. Sure, you may try to save some money here or there or attempt to pay down your debt, but without a solid plan, you’re just walking without an endpoint in sight. With over $212K of debt that didn’t include our mortgage, it was safe to say that we were Aimlessly Broke. Sure we had desires to change our finances, but those desires never seemed to be followed by action.
To shift our mindset from living Aimlessly Broke to being Broke on Purpose, there were four things that we had to do.
First, you get real with yourself. Is the life you’re currently living beyond what you can realistically afford? Are you robbing from peter to pay paul? Are you always having to borrow money from friends or family?
Second, you prioritize.
It’s one thing to say you’re going to stop being Aimlessly Broke, but what is the plan? Are you going to focus on budgeting consistently, saving money, paying off debt, or curbing your spending? What bad financial habits are causing you to be Aimlessly Broke, and which one is at the top of your list to address? Consider the pros and cons of making the changes or keeping things the way they are.
Third, you pivot
One way to financially pivot is by rethinking your income allocation. Does the flow of your income align with what you said was a priority? To pay off more debt, do you need to pull back some of your income from savings.
Read: The Financial Pivot and Switch
Lastly, you learn how to be content with the things you don’t have while you work towards securing the things that you desire. You may have to give up creature comforts like cable or going on vacation for a limited time, or you may find that picking up a part-time job will help you meet your goals faster. Whatever it is, remember that it’s a means to an end. Where you are now isn’t where you’ll be forever.
By making a change to live Broke on Purpose®, we’ve been able to live a life that provides us with a plethora of options. We’ve paid off over $100K of our debt, have six months’ worth of living expenses saved, have been able to travel, invest, and give.
Interested in making a change with your finances and learning more on how to live Broke on Purpose, check out my financial empowerment coaching offers and sign up for a discovery call so we can chat about which option is right for you.
