Have you ever wondered why you’re always broke?
You just checked your account balance and paused—“Wait, where did all my money go?” So you open your transaction history, scrolling through debit alerts, trying to do the math like an accountant. Still, the numbers aren’t mathing.
But you just got paid, so how come you are ALMOST broke?
If this happens to you more often than you’d like to admit, you’re not alone. Let’s break down the real reasons why you’re always broke—and how to fix it.
So, what exactly is sucking our accounts dry?
9 real reasons why you’re always broke
No judgement, we’ve all been there. They’ve paid salary, and you are just a baller for one week.
1. Impulse spending
Big money just touched your hand, and next thing, you’re on Instagram sending “how much?” DMs. You left the house to buy bread and came back with two bags of junk food. Also, you’re taking rides home anyhow. You know the worst part? You can’t even explain where the money went.
2. Lack of budgeting
When money has no plan, it will disappear fast. Salary drops, and we start settling bills without a real budget. Before you know it, you’re broke by mid-month. Or a week after, and your account is showing four digits already.
3. High-interest debt
You see those loans you’ve taken out throughout the month? Yes, it came in handy when you needed them the most, but now that the salary has entered, you have to repay nearly double with panic in your chest.
4. Not saving early
Some of us are waiting to “blow” before saving. But when exactly will that happen? If you don’t build saving habits now, even when you have millions, you’ll still be broke, just on a larger scale. Wouldn’t that be worse?
5. Saving too much (Yes, really)
Sounds wild, but it’s true. Some people save so aggressively that they leave nothing for day-to-day life. You locked all your money till month-end, and now you’re borrowing airtime. Even your network provider is tired of you. Balance is everything.
6. Lifestyle inflation
Finally, your boss has increased your salary, even with an inflationary increase. Congratulations oh! But why are you now booking a ride every day and going to all the hangout/weekend concerts? Upgrade slowly, not recklessly.
7. Poor investment choices
They said, “Bring ₦2k and get ₦100k.” You brought your ₦2k. Now the project has disappeared, and your money went with it. Investing without knowledge is like throwing money into the Third Mainland Bridge. You can never find it.
8. Lack of financial education
If you weren’t taught how money works, you’ll keep learning the hard (and expensive) way. It’s not about how much you earn, it’s what you do with it, why you’re always broke, and how to make that financial change.
9. Emergency expenses
One unplanned hospital visit or “urgent family need” can reset your whole month. That’s why you need a solid emergency fund. Let’s talk about how to build one.
How to actually start saving without stressing yourself
Let’s be honest, saving sounds hard when the price of everything is going up. But it’s not about how much you save, it’s about how consistent and intentional you are. First, understand this:
- Needs are the things you truly can’t do without.
- Wants are the “it would be nice to have” stuff.
Then, pick a savings structure that works for your income and lifestyle:
- 50/30/20, i.e., 50% needs, 30% wants, 20% savings.
- 30/30/30/10, i.e., Equal split for needs, wants, and savings; 10% for generosity.
- 80/20, i.e., Save 20% straight up. Spend the rest guilt-free.
- 60/20/20 Rule: A more moderate approach to accommodate goals.
Just stick to what works for your lifestyle.
Emergency fund 101: Buy yourself peace of mind
Building an emergency fund isn’t for the rich; it’s for the wise. Here’s how to start yours and how Paga can help make it easier.
Step 1: Know where you stand
Before anything, look at your income vs expenses. Let’s be honest. Like, be real with yourself. Are you spending more than your income?
Step 2: Set a realistic goal
Start small. Even ₦5,000/month is a win if you’re consistent. The goal is to build at least 3 months’ worth of expenses eventually.
Step 3: Create a budget
This is where the Paga Prepaid Card can help. It acts like a separate wallet—you fund only WHAT you plan to spend. That way, your actual budget stays safe while you handle everyday spending without overstepping. That is one way NOT to spend impulsively.
Read more: How your Paga prepaid card can save you from ATM fraud
Step 4: Automate everything
Out of sight, means out of temptation. You can always use Paga’s recurring feature to automatically make your monthly bill payments. That way, it is out of the way and you don’t think of it.
Step 5: Cut out the extra
Ask yourself: Do I really need to buy that cloth I most likely wouldn’t wear? Eliminating small leaks in your spending adds up faster than you think. This might be one of the reasons why you’re always broke.
Step 6: Use windfalls wisely
You got a bonus, birthday money or just funds you were not expecting? Instead of balling for the next 48 hours, stash some of it in your emergency fund. Future-you will be grateful.
Step 7: Monitor your transactions
Stay on top of your spending. The Paga app’s transaction history shows exactly where your money goes, so you can spot leaks and make changes quickly.
Read more: How to keep your transaction history up-to-date
To be honest,
Out of all these points, there are definitely a few that speak to why you’re always broke. You don’t have to be rich to be financially free; you just need a plan and the right tools. Start small. Start today.
Give your money a purpose. Watch yourself thrive and let Paga be your guide.
