Are you broke financially? No, you might not! Read this!!!

"There is a big difference between being broke and being responsible"

I was scrolling through my phone when a notification popped up and when I clicked, it took me to X (Twitter) to read a tweet, here is what it says:

If you earn money from a job or business, and you use it to look after yourself and your family and pay your bills, then invest and have little or nothing left at the end of the day, you are not broke. You are responsible. Big difference. A broke person is a person who does not earn money, regularly spends money without a budget on impulse, and has nothing to show for the money at the end of the day except for different consumer items that have little or no resale value. Stop confessing negatively. You are not broke. You have temporary cashflow challenges.
Source

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After reading and digesting that statement, I knew instantly that I was never broke, I have just been experiencing what is called "Temporary cashflow challenges" just like what the user said. The term refers to a short-term period where an individual finds it difficult to manage their finances which occurs when there is a delayed payment, either from their customer or unexpected expenses show up, or there are seasonal fluctuations in their income. The challenge is resolved when all of these are addressed effectively.

I am someone who loves to keep track of my spending through a budgeting app and it allows me to understand where my money is going without being confused about how money varnishes. The app has been helping me for over 3 years now due to my consistency in making sure to record where the money goes. Even before I started serving which has been fetching me some monthly allowances, Hive was/is my source of income where, when I have withdrawn a certain amount of money, I make sure to remove my tithes, settle my family, pay my bills, save part of it and in the end, there wouldn't be much left in my hand, I'd thought I was all the time broke. Eventually, I have come to realize I am being responsible as I choose to spend my money wisely.

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What does being broke mean?

I watched a clip some time ago, as funny as it was to me, it was one reality that has always occurred with certain individuals where they are trapped in what I call "Impulsive spending". These kinds of people fall into the category of not understanding what financial education is and how to start creating wealth for themselves. You know, there are still some individuals who do not understand what financial independence means and the factors surrounding it. In the clip, there is this lady who had money but chose to squander it on material stuff with no value without sparing some for other important things. Most individuals want to satisfy their wants rather than needs and later, they start to regret their actions. She spent all the money and after a few days, she was brought back to level zero where she started knocking and asking for money because she was broke.

They say money is a spirit, yet it is the wise that will immediately put it to good use and not spend all on unnecessary things. It is only when you work, earn and manage your money by doing what is most important first that you are seen as a responsible being even if you don't have anything left on you, for the fact that you have settled your needs, put into savings and invest some, makes you wise in putting your money into good use. It is important to understand financial education and learn what savings, budgeting and investing means. Creating a budget list is something important to be able to track your expenses and know when to save and invest, especially for the future.

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Something I love to do is to calculate how my money would be spent even before it arrives and when it does, I will immediately channel it across different places of which I do not forget to take care of myself as it is most important. Saving with interest plus investing has become part of me and this is because I take my financial goals seriously and also to build wealth for my future.

Being broke is when you don't work to earn anything, yet any money that appears would be spent impulsively without thinking to make good use of it and you wouldn't be able to explain how it was spent. Some spend lavishly on material stuff that doesn't add value to them and instead of learning about financial education, they prefer to satisfy their wants and gratification first, then when they have exhausted the money in their hand, their eyes are opened and they start to look for various means to make money.

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In conclusion, when you work, earn and utilise your money into good use by spreading it across various places including yourself, your family, paying bills, settling debt, saving and investing, even if you do not have anything left, you are responsible because you choose to prioritise the important needs rather than focusing on unnecessary wants that doesn't add value. You aren't broke when you are out of money haven done all those things above, and just like the tweet above, you are only experiencing temporary cashflow challenges which doesn't last.

Now, the question to ask is: "After reading this article, am I broke or responsible?"

_{First image generated from Picsart app.
Second image source and designed on Canva}