Ever wonder, “Why am I so broke all the time?” In this post, I share what I discovered when I seriously asked myself this question and what I did to stop being so broke.
After asking myself, “Why am I so broke?” every month for months in a row, I finally decided to set aside time to sit down and get to the bottom of what was happening. I framed it as a game, and I acted like a detective trying to find those sneaky expenses robbing my money.
Once I got to the bottom of where my money was going, I then created a budget and got intentional about how I spent my money. After doing that, I saved over $500,000 in just a few short years (click here to learn exactly how I did it).
However, before I created a budget, here’s what I discovered about why I was so broke:
Why Am I Broke in January?
Here’s why I was broke in January and why you may be too.
Christmas
In January, I was paying back the money that I spent on Christmas gifts and travel. Luckily, I wasn’t going into debt because I could pay the cards off in full, but it kept me from saving in the new year.
Learn more:
Post-Christmas Sales
I would also get excited about all the post-Christmas sales, and I would buy more stuff for myself in January (you know, I would buy all the things I wanted for Christmas but didn’t get).
New Year’s Resolutions
New Year’s resolutions would always have me spending more. From new training programs to gym memberships to new diet plans, or even courses to start a new business… My dreams of a better year would always have me pulling out my wallet.
Why am I Broke in February?
Here’s why I was broke in February and why you may be too.
Valentine’s Day!
I love red candy. So, even though candy isn’t that expensive, I would always buy Valentine’s Day-themed candy in February. I also would buy gifts for my husband and my girlfriends (Galentine’s Day).
Seasonal Shopping
Also, this is usually around the time that Target puts their bikinis. I’m usually so looking forward to summer by this time that I’ll try on and buy a bikini to have something to look forward to.
Why am I Broke in March?
Here’s why I was broke in March and why you may be too.
For me, this is the one month that nothing major comes up. Am I missing something? Let me know in the comments below.
Ok, Katie from Agape Investing mentioned St. Patricks Day and March Madness are two “holidays” that come up this month. So, if you find yourself buying extra green stuff or frequenting bars more this month you may want to start planning for these expenses before they pop up on you in March.
Why am I Broke in April?
Here’s why I was broke in April and why you may be too.
Taxes
While some people get tax refunds, I haven’t been one of them for many years. If I owe, I always wait until April before I pay, but this always left me feeling a little more broke in April.
Even if you get a refund, you may find yourself still feeling broke. Why? Perhaps you are spending more than your refund on things you want? Oh, and don’t forget about the fees you pay to have someone do your taxes for you…
Why am I Broke in May?
Here’s why I was broke in May and why you may be too.
Wedding Season
Did you know 78% of all weddings take place between May and October? Because May is the beginning of the wedding season, I always found myself feeling a little more strapped for cash at the end of the month after buying wedding gifts. Oh, and don’t forget about new outfits to attend these weddings as well as the occasional need to get a hotel near the wedding venue if drinking will be involved.
Memorial Day
Oh and Memorial Day weekend can also hurt the budget! An extra day off is an excuse for a mini getaway right?
Mother’s Day
Also, don’t forget about Mother’s Day! Don’t want mama to feel unloved.
Graduations
Oh, and sometimes graduations happen this month as well.
Why am I Broke in June?
Here’s why I was broke in June and why you may be too.
Father’s Day
Even when I’m trying to catch up from everything I spend in May, along comes Father’s Day. Gotta spend the same amount I spent on my mom, right? Oh, and now that I have a kiddo I also have to get my husband something to make him feel special too.
Why am I Broke in July?
Here’s why I was broke in July and why you may be too.
Higher Utility Costs
I live in Southern California so by July it’s usually hot and time to run the air conditioner. The heat also means we gotta water the lawn more so it doesn’t die!
Vacations
This is also a prime time to take summer vacations. Because everyone is doing it, it’s usually more expensive and more crowded as well… #ugh
Why am I broke in August?
Here’s why I was broke in August and why you may be too.
Entertainment
The weather is nice so it’s prime time for theme parks, zoos, and water parks. Now that I have two kiddos the nice weather makes me want to get out more and keep them entertained, so they don’t have meltdowns.
Back To School Supplies
I don’t have to deal with this yet, but I know it’s coming. Also, I can’t help but want to buy all the back-to-school supplies even when I don’t need them.
Why am I Broke in September?
Here’s why I was broke in September and why you may be too.
Entertainment
For me, this is the month that the fair is in town. That means it’s prime time for rides and games and expensive food and maybe some impulse buys on things we don’t need.
Why am I Broke in October?
Here’s why I was broke in October and why you may be too.
Halloween
Gotta get that Halloween costume for the whole family and me! Oh, and the candy! And decorations! Gotta stock up so we don’t run out this year!
Christmas Shopping
When I’m really efficient, I start to Christmas shop in October. From gifts to decorations, it’s all so tempting to get a head start.
Why am I Broke in November?
Here’s why I was broke in November and why you may be too.
Thanksgiving!
My family does a potluck-style Thanksgiving, but you still have to make enough for a lot of people, and my aunt lives pretty far, so the traveling cost adds up… This year Thanksgiving will be extra expensive because we’re flying to visit my husband’s family out of state…
Black Friday & Cyber Monday
I usually buy some gifts for other people on Black Friday, but I mostly shop for myself… #oops I love a good deal, but I have to ask myself, “Is it really a good deal if you don’t need it?”
Why am I Broke in December?
Here’s why I was broke in December and why you may be too.
Christmas
Does anyone ever really finish shopping before December? I feel like there’s always someone unexpected that gets me a gift, and I feel obligated to reciprocate. Also, secret Santas always pop up on me at the last minute. That and stocking stuffers…
Travel
Because my husband’s family lives out of state, December is always expensive for us because we have to get flights to travel to them. Between the actual flights, getting a rental car, and eating out when we can’t cook, it all adds up.
New Year’s Parties
When I’ve planned to do something bigger on New Year’s, it always means more money being spent. Sometimes the party has a cover charge; otherwise, I feel compelled to buy a New Year’s party outfit.
Other Reasons Why I’m Broke
If the seasonal “unexpected” expenses weren’t enough, there are always other things that pop up on all of us they just vary depending on the people and major events in our lives… Here are some examples:
- Birthdays
- Anniversaries
- Baby showers
- Car insurance (if paid semi-annually)
- Life insurance (if paid annually)
- Car Repairs
- Home maintenance
How to Stop Being Broke
All these expenses are a little overwhelming when you see them all laid out like this, right? Don’t worry, I’m not going to tell you to stop going to weddings or to stop having fun. Many of these expenses are vital components of our culture and help us maintain and keep deep and lasting relationships with the people closest to us. For the record, I am for keeping good relationships with people.
So What Can You Do?
Here are my top tips to stop getting caught by random expenses throughout the year.
Plan for these expenses
They happen every year so it shouldn’t surprise you. If you sit down and put a price to them now, you can save for them every month. If you realize you don’t have enough every month to save for them, then you probably can’t afford to do them all the way you’ve been doing them (if you’re in debt, this may be why). So…
Create a budget for what you can afford
Maybe you’ve been spending $50 on everyone’s birthday gifts, but you can’t afford that. Maybe instead, you can spend $20 per gift and or reduce the number of people you buy gifts for. It’s ok, you can have an adult conversation and give them permission to not buy you a gift as well. A true friend will understand and want your financial success just as much as you do.
Get creative and think differently
Christmas is a crazy time for some people. As families grow, so does the number of gifts people have to buy. But does it have to be that way? Absolutely not! You can do a gift exchange, so everyone buys one other person a gift rather than buying everyone a gift.
For weddings, especially now that I have a child, I use the rule of “It’s either a hell yes or a no”. So when friends from college that I haven’t seen in years are getting married, and I wouldn’t know anyone else there, I say no. Because for me, the idea of sitting around people I don’t know and making small talk about how they know the couple coupled with the cost of paying for a sitter and getting a new outfit and buying a gift for someone I haven’t seen or talked to in 5 years just isn’t worth it to me. #savage
Taking It One Step Further
Ok, now that we’ve talked about planning for things that keep you broke every year, let’s talk about things that kill your budget every ten to twenty years (like needing to upgrade a car or major alliances).
Haha! I’m just kidding, I’m sure you’ve had enough of me already…. but it’s something to think about… ?
Learn more:
Ok, so let me know in the comments below what things you do from the list above. Also, let me know what I forgot to add, or how you’re going to plan for these things and think differently about them.
