No one likes being broke, and it’s stressful, uncomfortable, and counterproductive to achieving your financial goals. While there may be some things about your finances that are outside of your control, like whether your boss is willing to give you a raise, you can control some other things that can help you repair your financial state. Here are some things you shouldn’t do when you’re broke:
Take out a loan for a new car, or for any other reason: If you’re broke, you can’t afford another monthly payment and that’s exactly what you’re adding to your plate when you take out a loan.
Go on an expensive vacation: You’re broke, you can’t afford a vacation. If you have money saved up for a vacation, there’s probably something more pressing you could spend that money on—like past due bills or car repairs, for example.
Loan money to someone else, or cosign for them: Having no money for yourself means you also don’t have money for anyone else. Cosigning is included here because cosigning a loan is essentially accepting the responsibility for the monthly payment if the other signer can’t make it.
Spend money on non-necessities: One of the hardest things to do, when you’re broke especially, is to rein in your spending and keep it only to the things you need. It’s important, however, to keep your spending to a minimum until you can afford to spend more.
Eat at restaurants: Buy groceries and prepare your meals at home. Take your lunch to work, even if it means having leftovers.
Have cable television: Many networks let you watch the shows online for free a day or two after the show airs. That’s a good way to stay up to date with your favorite shows without the extra cost.