11 Reasons You’ll Be A Broke Millennial Forever

Although people have differing views of what it means to be broke, I can tell you one thing for sure: It sucks. For the most part, being broke signifies that you have a lack of money in one or more areas of your life where you should have been able to be secure. You see, there’s a difference between being poor and being broke. Being poor has much to do with your income versus your expenses, whereas being broke has everything to do with your choices and your mindset.

While both leave you without the money you need, one is highly preventable. If you have found yourself in a situation where you feel like you’re officially broke, check out these 11 reasons you might have gotten there in the first place and make a change so you won’t be a broke millennial forever.

1. You live way outside your means

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If you’ve noticed that you’re always living paycheck to paycheck or that you have no money stored away in an emergency or retirement fund, it’s very possible that you’re living way outside your means. Financial professional Stanley Poorman says 50% of your gross pay should be spent on essentials like bills and regular expenses (groceries, rent, or mortgage) and 30% should be allocated for spending on dining/ordering out and entertainment. The other 20%? That money should be saved or invested to ensure you’re living well within your means.

2. You don’t understand your biggest line item expense

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This is a tough one that seems to get people year after year. I’ve said it before and I’ll say it again: If you don’t understand your biggest line item expense when it comes to taxes, you will never be able to fully appreciate the wealth that is possible for you. Having someone to help you file your taxes is one thing, but completely and fully understanding how taxes can work for you rather than against you is a whole different matter. If you don’t want to be broke, I suggest the second.

3. You don’t spend time researching how to invest in a diverse portfolio

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According to Time Magazine, “When you diversify your portfolio, you incorporate a variety of different asset types into your portfolio. Diversification can help reduce your portfolio's risk so that one asset or asset class's performance doesn't affect your entire portfolio.” Diversifying your portfolio provides stability and room for growth. It's non-negotiable when it comes to long term wealth.

4. You don’t think you deserve wealth

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Dude, come on. Are we really still doing this? You deserve wealth just as much as the guy who already has it, as long as you’re willing to work for it and take the right steps to get there. Wealth is created and earned, not found. If you still don’t think you deserve it, I encourage you to look inward and figure out what has led you to that belief. When you figure it out, get rid of it and begin to take steps in the right direction toward your future.

5. You have no strategy or goal

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Having no strategy or overarching goal for your wealth management is like asking someone to visit the middle of the Grand Canyon without giving them a single line of directions. The fact of the matter is, if you don’t have a strategy of how you plan on increasing your wealth, you’ll likely never get there.

6. You’re self sabotaging

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Similar to above, are we really still doing this? No one will be able to convince you that you’re worthy of wealth other than yourself, and until you decide to stop self sabotaging and accept what’s coming your way, you’ll never make it out of the chasing wealth cycle. It’s time to stop punishing yourself for your past and start stepping into your future.

7. You secretly think you’ll hit the lottery

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I’m not saying you won’t, but what I am saying is that it’s a hell of a lot more likely you’ll be able to work your way to the top than to be able to scratch off a lottery ticket and strike it rich. If you’re still waiting around for the right job, the right slot machine, or the right side hustle to come along, you’ll be waiting forever.

8. You think you have time to get rich later

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While more money will come, it’s never too early to begin saving and investing as much as you can. Of course, you have time to continue to make money in the future, but if it’s not today, then when will you decide that enough is enough? If you’re always waiting on tomorrow to come to “strike it rich” you’ll be a broke millennial forever.

9. You aren’t stewarding your money and giving back

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Part of becoming rich is remembering that at one time you weren’t. If you’re not putting money back into the community and helping out people who are in less fortunate positions than you are, you’ll never really make it out of the “broke” cycle. You might be rich, but you won’t be wealthy.

10. You lack urgency

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The dollar you earned today will never be worth as much as it is right now. Let me put it to you this way. ​​Person 1 saves $10,000 a year for 10 years, then nothing for 30 years, while person 2 saves $2,500 a year for 40 years. Both people saved the same $100,000, but the person who saved more early on wound up with $1,388,623 while the person who saved later wound up with $612,116. Take my advice and invest early. It’ll be worth it everytime.

11. You’re just plain gullible

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This one’s pretty self explanatory, but I’ll say it just in case: If you think you are any different than anyone else on this planet when it comes to making money and creating wealth, you’re just plain gullible. Stop falling for “get rich quick scams” and learn how to work your way to the top. That is where the real wealth can be found.

Take it from me when I say that being broke sucks. Aside from the fact that you can’t physically purchase and pay for the things that you want and need, you also make it extremely difficult on yourself to break the cycle of trying to figure out how to make it to the top. If you want to be wealthy, check yourself early on and make sure you’re not falling into any of the 11 categories listed above. It’s time to say goodbye to being a broke millennial once and for all.