Can you avoid being broke? 

It is no surprise that today’s economy is not in its best shape, and many Americans have financial difficulties, often without understanding where their monthly income is going. Today you’re being paid at work, then in less than two weeks, voila, your wallet is empty. What do I have to do to prevent this from happening? Is there any secret recipe to success? Well, unfortunately, we can’t be rich overnight, at least not all of us, but there are some things that you can do to avoid being broke before the next paycheck.

The truth is that over time, small or even seemingly insignificant purchases can mount up and cause a huge financial strain. These habits range from impulse purchases you may do monthly to neglected subscriptions that you barely use anymore but keep paying.

The first step to taking charge of your finances is realizing where you’re wasting money, and for that, we’re here to help you. In today’s article on Brainy Savings, we’ll explore some common habits that can lead to wasting money and being less financially responsible. And remember, we’re not here to judge! Our goal is to help you become more savvy with your savings.

Buying only brand-name products

Do you find yourself buying Nestle cereals for your breakfast instead of the generic version available at, let’s say, Walmart? This is the first mistake folks make when it comes to wasting money. I know it seems that a brand-name product is more trustworthy, but in reality, both brand-name products and generic ones contain the (almost) same ingredients, but they cost more just because you’re paying for the brand itself.

TIP: I suggest you also check the generic products’ labels because you will be surprised that they can also be healthier than the others. 

To avoid being broke and save more money this year, try and switch to generics when you can, especially at huge supermarket chains like Walmart, Lidl, and Costco. Avoid sacrificing your savings because of brand loyalty.

High utility bills

Blasting the heat during the winter and forgetting to turn it off when you leave home, leaving lights on in all rooms even if nobody is there, or running the AC every day and every night during summer adds up to huge utility bills.

Simple methods like switching off lights, modifying the thermostat, and purchasing energy-saving equipment can have a major effect. You can use the money you save on utility bills to pay for other essentials.

Another way to help yourself with this is to place Post-it notes next to appliances to remind yourself to switch them off before leaving the room.

Always buying new-generation gadgets

Having a new phone or a new laptop, or if you’re a fan, a new gear to play your favorite games, is always nice and kind of rewarding, but before rushing to buy the new iPhone model, ask yourself if you really need it.

I don’t want it to sound like I am telling you what you should do with your money, but as long as the gadgets you currently own are still working, receiving updates for another year or two is better to save that money and avoid buying the latest generation tech if you don’t need it.

Shopping at convenience stores

In almost every neighborhood there is a tempting convenience store that lures us to enter and buy all sorts of stuff that we don’t need, but since it’s in the way…you know. It might seem like a good idea, but it’s not. Why?

All of the convenience stores sell expensive products, so even if you go in thinking you’ll just buy a bottle of juice and leave, you’ll still pay more than you should. Save money and go to one of the supermarkets to do your weekly grocery shopping instead of going there. Just remember to create a list beforehand. You will save money and time by doing this.

TIP: Smaller purchases may seem more convenient, but they are frequently far more costly. If you know there are some products you and your family are using frequently, consider buying in bulk. It will help you save money in the long run! 

Regularly eating out

…Mmm, comfort food! It may be good for the soul, but your wallet will definitely suffer if you decide to “comfort” yourself every day for lunch or dinner. This may indeed seem like an affordable and quick option, especially if you’re a busy person with a hectic daily schedule and you’re not at home that much.

In reality, the affordable option is just a myth. Inflation took great care of most takeout restaurants, and their prices are now quite high, especially for a regular-sized meal. If you want to save money, avoid being broke, and also make sure your meals are healthy and nutritious, it’s better to prepare them at home.

The meal prep method is great for everyone who doesn’t have the time to cook that much. Take Sunday to prepare all the meals for five days so you won’t be tempted to splurge during the week, and you will avoid asking yourself every day, “What do I eat?”

Would you like to see how much you can save in three months? This Spend Save Give Money Saving Box is what you need. With its three distinct containers, this adorable box makes it simple and enjoyable to manage your finances. It can be mounted on the wall or just placed on your countertop. Amazon is selling the product for $19.99. What do you think? 

Car leasing

With lower monthly payments, leasing a car might seem like a good idea, but it’s frequently a bad financial decision. In essence, you are renting the car when you lease it; you do not become the owner at the end of the period. An excellent long-term investment that lets you accumulate equity is purchasing a quality used car.

Buying a car outright (even if you might need to save a lot in the first place to buy it) will save you more money over time than continuously renting new ones. And if you take good care of it, you will have it intact for a long while.

Unnecessary insurance

Although insurance is crucial, a lot of people squander money on pointless extras that offer minimal value. Although they might seem like good ideas, extended warranties, rental car insurance, and other forms of coverage are frequently unnecessary.

Over time, you can save a significant amount of money by carefully examining your policies and eliminating extras. Pay for only the coverage you truly require, not what salespeople try to sell you.

Bottom line:

The first step to break free from this “being broke chain” is to write down all your monthly expenses. Be aware of how much you’re spending and what you can reduce or avoid at all costs. What you think is a small change can lead to huge financial improvements over time.

Most people believe that giving up certain things will sacrifice their lifestyle, but in reality,y you will end up making smarter choices with your money. You can save a significant amount of money in a single month by ditching pointless subscriptions and food orders. You know that vacation you said you can’t afford? By doing this you will be able to. It’s all about penny-pinching!

If you are curious about how to save more money and avoid being broke in 2025, then you might want to know which household costs are about to be more expensive this year.