Everyone has their own definition of wealth. For some, it might be a 7-figure net worth, while for others having a roof over their heads is all they need. However, there are others that never have money or no matter how much money they have, they consider themselves broke.

‘Broke’ mentality is a mindset developed through years of conditioning that leads people to believe they never have enough money, and thus they end up making poor financial decisions driven by fear or need for instant gratification when they do have it.

Some rich people can also have a broke mindset. They could have financial wealth according to social standards, but it might still not be enough for them if they compare themselves with others who are wealthier. They might also squander all their money and end up broke if they make poor financial decisions. It all comes down to your attitude towards money and how you handle it. 

So, is being broke or rich a state of mind? Let’s see.

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How to know you have broke mentality and how to break it

There are several ways to identify if you have a broke person mindset. Some of these include;

  1. Always thinking broke

Being broke is a state of mind. How you think about money can affect how you create and spend it. We actualize what we think and say. So, if you are always thinking about how broke you are or saying things like, ‘I am always broke’, ‘I can’t be rich,’ or ’I never know how to manage money,’ you will start to believe that is how it is. You will not make any effort or be motivated to change your situation because you already accepted it.

Being broke starts with the thoughts you allow into your head. Change your way of thinking, and you will attract abundance. To overcome broke mentality, practice positive self-talk or rephrase by saying something like, ‘I’m temporarily broke’ or ‘I will find a way around/through this.’

  1. You don’t think outside the box

Most people with broke mentality have been claiming they are broke for months or years even. Perhaps you have been working at a low-paying job, or your business isn’t bringing in enough money. If you always make excuses and never think of alternative ways you could change the situation, you can become stuck.

However, if you had a rich person mindset, you would not allow yourself to remain in the same position for that long. You would find ways to get the resources you need to change your circumstances and get ahead.

For instance, you could change careers, gain more skills to increase your opportunities, start a side hustle, change how your business operates or the product you sell, or spend your money more wisely.

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  1. You spend more than you earn

Do you know that the people who spend like they are rich are probably the poorest? People with broke mentality usually spend most of their money as soon as they get it. If you find yourself spending too much or borrowing money to maintain status or seem rich, you might end up draining all your savings and get into credit card debt for no good reason.

Spending beyond your means can not only lead to poverty but will also be accompanied by stress over the debt you got yourself into. You will not have the freedom or time to enjoy whatever you bought because you will be busy trying to repay it.

You can’t build wealth if you are always in debt or if you spend all your money. Start spending only on things you can afford without impoverishing yourself and buy only meaningful things. Having social status will not bring food to the table.

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  1. You never save or make investments

People with a broke mindset are the same ones who say they earn too little to save. However, even with a small income, you can still set aside a portion, even a small percentage, to go into your savings account or investments. Savings are the first step toward attaining financial freedom.

Without savings, you will have no money to fall back on when unpredictable circumstances happen, such as emergencies and the loss of a job. This is why you might find yourself in the same situation you are in 5-10 years from now because you live paycheck to paycheck.

If you truly earn a small income and only have enough for groceries and other utilities right now, it might be time to consider alternative ways to increase your income, such as side hustles, more shifts, a second job, or look for a better-paying main job. There are many other ways to become rich even if you are from a poor background or don’t earn much. Staying poor is a choice!

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  1. You value quantity over quality

People with broke mentality often prefer to buy cheap things over expensive quality items because they believe they are wasting money. Since most cheap things are of low quality, they are not durable, and you might have to keep buying replacements or making repairs later.

Unfortunately, cheap is expensive. You could end up spending more on these than you would have if you had just bought quality items with a longer lifespan in the beginning.

  1. You prioritize wants over needs

Spending your money on a luxury cruise vacation is not a need while using it on education or bills is. If you have broke mentality, you do not know to prioritize needs over wants. You might have to make late payments on basic needs like house rent and water because you squandered your last paycheck on unnecessary things.

If you have this poor spending habit, consider creating a budget to plan and monitor your spending and allocate money to various categories.

Setting financial goals and coming up with a plan can help save money for the luxurious vacation, if you do want to go, without becoming poor or neglecting your responsibilities in the process.

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  1. You have a scarcity mindset

 If you look at what you have in life, you’ll always have more. If you look at what you don’t have in life, you’ll never have enough.

Oprah Winfrey

The scarcity mentality views money as a finite resource you have to hoard to keep someone else from getting it. You think that you will never have enough, and there is nothing you can do about it. You also focus on what you don’t have, instead of what you have, thus, resulting in dissatisfaction with your life.

For example, someone with a networth of $20 million could still feel like they are broke when they compare themselves with someone else with a bigger one than theirs, say $50 million.

To overcome the scarcity mindset, be grateful and content with what you have. If you are actually broke, stop comparing yourself with others and focus on growth. Find ways to earn more money if that will make you feel better.

Using affirmations to remind yourself you have/are enough can also help shift from the scarcity mindset to the abundance mindset.

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So, is being broke a mentality?

Being broke is a state of mind’ is a statement that many people like to believe is only said by the rich because they are already successful. But, it is true. Being broke is a mindset. The way you think about money can influence your spending habits and your attitude towards creating wealth. To break broke mentality, you have to change your way of thinking and attitude towards money, become wiser with your spending habits, and continue learning new ways to make the most out of every cent. Like any other habit, switching from broke mindset to abundance mindset will not be easy, but it will be worth it.

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24 thoughts on “Broke Mentality: Being Broke is a State of Mind

  1. You’re right about having a “broke mentality.” Thinking that you’re a broke person discourages you from trying to change that. When you believe your situation can change, you’re more likely to take action to fix it.

    Liked by 1 person

  2. Well said… Being rich or broke relates more to the state of mind..if one has done his or her financial planning well than there is no difference between anyone….equitable savings and investment…avoiding wasteful expenditure are the only actions required…for everyone has got nearly same number of years to live and also similar needs to be fulfilled and that doesn’t require too much money…I agree with you people got to learn to differentiate between needs..wants and desires.

    Stay blessed.
    Stay safe
    🙏🌹🙏

    Liked by 1 person

  3. A realistically positive mindset helps so much. Fundamentally, we manifest what we believe and unfortunately, as humans, we’re hardwired to notice threat, hence notice the negative while forgetting to see the positives and abundance around us. So we see that our television is not big enough and we forget how brilliant it is to have a fridge and that fridge has food. To have a positive mindset, it takes conscious choice and effort. Others may agree/disagree with this.

    Liked by 1 person

    1. I completely agree with you. If we focus on the what we don’t have, we can’t appreciate the good things in our lives and will always feel dissatisfied and keep wanting more. Thank you so much for giving more insight into the topic.

      Liked by 1 person

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