Reasons Why broke by end of month & Solutions to resolve this situation

So this is an common problem faced my millennials and genz  youth despite of good earning poor management of fund to this sate of "bro I'm so broke" by the end of month. So lets dig into issues and solutions to over come this state.

Issue 1 : Impulsive shopping

This is the major reason for not being able to save more. You are buying something just because you like it while you look at. It's makes you sometimes go overboard your budget and you regret this later

So solution to this is, add to cart and wait for 72 hours at least. It just took 5 minutes for you to like something and to decided to buy. So let it there be in your cart and see after 72 hours if you still are inclined to buy. If yes, then buy and say bye to your hard earned money over that cute product.

Point is to create guilt of buying unnecessary stuff before buying rather than after buying stuff.

Issue 2: Gosh! That's on Sale.

So buying something coz its just on sale really not cool.  The offers are generally clubbed with buying other products or more discount on more purchase or getting vouchers to buy later or another gift product which you completely don't need. The word free, discount or cashback are triggers to attract you. Don't be Monisha Sarabhai and buy stuff to get discounts and free gifts.

Solution to this is evaluate the *T&C thoroughly and make sure deal is not fooling you my given a petty associated offer. Check whether the tag along product will be useful. Check where discount over shopping a minimum amount is actually worth your cart reaching that minimum amount. Be wise. Shop smart.

Issue 3 : To Keep up with TRENDS

Just to keep up with ever changing trends people tend to buy unwanted stuff. These trends change so fast that even before the product is consumed properly the it way's out of trend and results into waste of money spent on it. These faster than light changing trends are threat to environment also. As it creates a lot of waste that does a lot of damage and its disposable is also an issue

So at least for the sake of environment stop trending to trends. Something that was out of trend in 90's is now back in trend. So instead of keeping up with trends be trend setters and be comfortable in what you already have. Shopping to keep us with trends is a Big No. Don't even add those products to your cart if it just for the sake of trend. 

Issue 4 : Social Media influence 

Social media is an awesome place to be informed and inspired. A lot of products are introduced medium of soical media. Where you get influenced by some one to buy a product just on the basis that some particular person is promoting. You may not even need that product but you still go ahead and buy. Another example of social media influence is that to showcase their materialistic happiness on soical media. The idea that someone else has something you dont neet but you want because they have is quite depressing

Please stay away from such influence and idea of happiness. Try to fing your ikigai in better things. This won't make you broke in the end of month but help you save. 

Issue 5 : Not having that "Oh No" fund

One thing we all learnt in this pandemic is importance of having emergency funds. A "oh no, fund" is something created for that one rainy day and helps you from being way too broke. But keeping a fund long term needs or unforeseen future is the key. This is not "I so wanna buy that jacket fund". Keeping a part of your earnings aside partially liquid partially freeze is what a emergency fund is made up of. 

Making a contingency fund can help you escape tough situations as smooth as a moon walk.

It's like being prepared for worst scenario. To that is as simple as making a RD or scheduling an ECS every month to another bank account of yours or keeping aside a stack of cash. Anything of this kind works. Just make that fund so you don't go "Oh! no" in though places.

Issue 6 : Not putting your money to work

We discussed above to keep aside a Oh! No fund a part of this money should help you earn more money. Put your ideal money at work. Your cash under the matters, in between clothes and books won't double on it own you need to invest it in a scheme that is not very risky and gives you good returns at the same time. Keep these investment utmost safe. Don't invest these funds in highly volatile modes of investments like crypto currencies, high risk mutual funds, commodities with high risk, betting etc. Invest in safe and secure but return applied option like SIP in moderate funds, LIC schemes, investments in gold bonds, etc.

Issue 7 : Budgeting 

Agar yeh kiya hota toh "Why so broke yaar" yeh nai bolna padta. List out all those expense in an excel or any sheet and list all incomes check for gaps between incomes and expenses. Include your saving fund also as an expense you pay towards your own future. Calculate each aspect of cash in and cash out. Become a data scientist of your expenses and track where you went out of line.  Having a budget will help you keep in mind how much can you actually spend and avoid overspending. Subconsciously you'll be aware of your out of line spending's. If there are expenses over your income try to raise your income by asking that promotion you work so hard for or by adopting new means to generate income

Keep all these factors alongside each month so you don't go broke each month