October 4, 2023 | Sammy Tran

10 Signs You're Broke


10 Signs You're Broke

cash and broke woman split image

In today's fast-paced world, where social media can often give us a skewed perception of others' financial success, it can be challenging to gauge our own financial health. Sometimes, the signs that we're in financial distress are subtle, but acknowledging them is crucial for making a positive change.

Here are 10 indicators that may suggest you're broke or on the verge of it.

Living Paycheck to Paycheck

Young man wearing black shirt is holding money.Tima Miroshnichenko, Pexels

The most common sign is living from one paycheck to the next without any substantial savings in between. If you find yourself waiting anxiously for the next payday to cover your bills, it indicates that you lack a financial cushion, which can be precarious in emergencies.

Avoiding Bills and Bank Statements

Divorce Horror Stories factsShutterstock

Continuously avoiding opening your bills or checking your bank statement because you're afraid of what you might see is a glaring sign. Ignorance might be bliss, but it won't change your financial situation.

Declined Card Transactions

Woman is paying at store with credit card.Andrea Piacquadio, Pexels

If your credit or debit card gets declined frequently due to insufficient funds, it's an evident sign of financial instability. It's essential to be aware of your balance and manage your expenses accordingly.

Reliance on Credit Cards for Essentials

Man with golden watch is giving a credit card to a woman wearing pink nail polish.energepic.com , Pexels

Using credit cards for everyday essentials like groceries or gas because your bank account is running low suggests you're borrowing money you don't have. Relying on credit for daily expenses can lead to hefty interest payments in the long run.

Not Having a Savings Account

People in an office having a meetingRDNE Stock project, Pexels

If you don’t have a savings account or have one but rarely contribute to it, it's a sign you're not setting money aside for future needs, investments, or unforeseen emergencies.

Cutting out Basic Necessities

A sad woman grocery shoppingDrazen, Adobe Stock

When you start cutting out basic needs such as groceries or medical needs because you can't afford them, it's a definite sign that you're broke or heading there.

Not Being Able to Cover Emergencies

Romantic BetrayalsShutterstock

If a sudden $500 expense would send you into a spiral, it indicates a lack of emergency savings. Ideally, everyone should have an emergency fund to cover at least three to six months of expenses.

Hesitation to Make Long-term Commitments

Worried man is seating in the back of the car full with boxes.Karolina Grabowska ,Pexels

If you're avoiding long-term commitments like contracts or monthly memberships because you're uncertain you can manage the ongoing costs, it's a sign of financial insecurity.

Constantly Borrowing Money

Senior man wearing pink shirt and white hat is giving a money to other man.RDNE Stock project, Pexels

While it's okay to ask for help occasionally, if you're constantly borrowing money from friends or family to make ends meet, it’s a clear indicator of a deeper financial problem.

Lack of Financial Goals or Plans

Young woman is holding money and smiling.Mikhail Nilov ,Pexels

A telling sign that you’re financially adrift is the lack of any financial goals or plans. If you’re not looking ahead, budgeting, or planning for your future, it means you’re likely stuck in a cycle of short-term financial fixes.

Recognizing these signs is the first step toward making positive changes. By understanding your current situation and being honest with yourself about your finances, you can start building a more secure financial future.


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