Hi, I’m Charles, I am a financial writer at lovejunktion and I write about personal finance that actually fits into your real life. No complicated jargon, just clear advice you can use.
In this article, you’ll learn about the 12 things that broke people always seem to have money for. Ready? Let’s begin.
Let’s be honest, broke people aren’t broke because everything’s so expensive.
They’re broke because they constantly spend their money on things that don’t improve their situation.
And we see it all around us. You hear somebody complain that they’re broke while they’re scrolling on their new iPhone, eating takeout, and shopping for a new pair of Jordans.
So, it’s time to address this. Here are the 12 things that broke people always seem to have money for, and why these bad habits keep them stuck. Let’s get straight into it.
12 Things Broke People Always Have Money For
Thing 1–Takeout and Door Dash
The very same people that complain that groceries are so expensive are having Chick-fil-A for lunch and Door Dash for evening dinner.
Now, they talk a good talk, but a lack of a plan and hunger will overcome any good intention they may have.
Eventually, getting takeout and eating out, once a treat becomes a daily habit. Now, back in my day, in the 90s, it really was a treat.
You were lucky if you got it once a month. And these days, it’s so much more expensive. You could easily blow 20 to $40 on a simple lunch and a takeout dinner.
Now, that $20 to $40 can go a long way on paying down some consumer debt. That’s $100 a week or $400 a month or $5,000 a year.
Now, if you’re carrying a credit card balance month-to-month, $5,000 can go a long way. It all adds up.
Thing 2–Subscription overload
Broke people love to catch up with their favorite shows on TV. So when they go to work the next day, they can have a good discussion with their friends.
The problem is the world has moved to subscription mode where everything is tied to an app and the TV services have carved up all the favorite TV shows.
These days it seems like you have to have four to eight streaming services just to get all the shows you want to watch.
You know what? I would stretch out a limb and say that’s done by design. Hulu, Disney Plus, Netflix, Prime, Spotify, Paramount Plus, and the list goes on.
Take it from me, you don’t need eight streaming services when your bank account is buffering hard.
And for me, even worse is all this productivity and valuable time that people spend wasting watching TV.
Broke people are literally stuck to the TV, wasting their life away. It’s a double cost.
Thing 3–New phones and earbuds
Now, these are the vanity products number one and number two for broke people. The latest model iPhone and $300 earbuds to match.
Now, if they were purchased as a reward for some major financial moves, then I say well done. You deserve it.
But if people are buying fancy and expensive tech while they’re behind on the rent, then this is a very bad financial move.
And worse still, given the historic highs of credit card balances carried forward every month, there’s all likelihood that purchases like these are put on 24-month interest payment plans.
Instead of buy now, pay later, it’s flex now, pay double later. This is doubling down on a broke mindset and a broke lifestyle. Avoid at all costs.
Thing 4–Designer shoes and clothes
Now, when you see broke people wearing every single dollar they have with the latest name brands, it really sticks out.
They may look the part as a flashy millionaire, but they usually turn out to be just a millionaire with nothing in the bank apart from bad consumer debt.
Broke people love to look rich, even when their wallet is on life support. If you’re broke, but you’re rocking $300 Jordans and a nice pair of Gucci jeans, that’s not flexing.
They’re existing in a financial void, trapped in a consumer pit of debt and anxiety. Please wear understated clothes and put your money to work.
Once you have some income-producing assets and those Jordans are still begging to be bought, then get them as a reward and they will feel twice as sweet.
Thing 5–Cigarettes and vape pens
Now, these are a daily vice that will go against every bit of healthy advice you can find.
And bottom line, they provide you with nothing apart from feed and maintain an addiction that’s designed to shorten your life.
Based on that alone, the habit should be kicked to the curb. Is it hard to quit? Absolutely. I did it 5 years ago and it was one of the hardest things I did.
But I quit and so can you. But apart from the health risks and the unknowns, the cost is a daily tax that doesn’t need to be paid.
Just a $10 a day habit will cost you $3500 a year. That’s a vacation or emergency fund every single year.
Now, broke people will say it’s their one luxury or they need it for stress. I can only agree that it’s often a broke mindset that will defend the habit. For the sake of your health and your wallet, avoid this broke habit.
Thing 6–Alcohol and clubbing
As a child of the 90s, I was lucky enough to witness the birth of rave music and I lived it up in the 2000s.
In London, there was no shortage of venues, alcohol, and taxis to get us around. I lived it up every weekend.
And looking back, I wasted a fortune. And you know what? I can’t remember half the time. I overindulged. I saved nothing. And I spent every penny I earned.
Looking back, if I just saved 10% of my s like my parents asked me to, I’d be in a much better financial position. And you know what? I would have had no less fun.
These days, it seems even more expensive going out, between the drinks and the Ubers.
Now, going out and having fun is great for your mental health, and you need to find that balance between work and play.
But doing it at the expense of your financial health is short-sighted. It can be a problem. So, find a strategy for you that can lower the cost and put those savings aside.
Thing 7–Lottery tickets and scratch cards
Now, for broke people, this is how you get rich. Venture out of your comfort zone just enough to get some lottery tickets and some scratch cards. Trying their luck can have a bit of a gamble before going back to the comfort zone.
What broke people don’t realize is that playing the lottery is just a tax. It’s a tax on people that suck at math.
Because once people realize you’re more likely to get struck by lightning twice than win the lottery, you’re probably not going to play it again.
Playing the lottery and gambling in general is worse than not doing anything at all because you’re grasping at straws and hoping for the best.
Thing 8–Payday loans
Have you noticed how many of those little yellow stores there are in certain areas? They offer small loans at extremely high rates and business is booming.
For me, it’s an indication of the population of just how many broke people there are using these stores.
Broke people will always find money to borrow and spend rather than to use and grow. It’s instant gratification on high sugar. And it maintains that cycle of borrow and pay back.
It’s just renting lifestyle and consumer habits with a high interest rate. And if you don’t break that cycle with steps in the right direction, it’s going to keep you trapped for a long time. A great step forward is have a no buy month and build from there.
Thing 9–Trendy side hustles and courses
Just like playing the lottery, broke people are always looking for the next big get-rich quick scheme.
And it has to be quick before their attention span moves on to more interesting things. A $1,000 online course on how to do drop shipping will attract broke people in their droves.
Now, most of these courses that promise the earth are just hype, of course, but broke people will fall for shiny shortcuts instead of a solid and real strategy.
They’re just looking for the easiest route to make the most money with the least amount of commitment as possible.
Thing 10–Jewelry
Now, along with expensive and brand-name clothing, one of the biggest accessories for broke people are nice watches and nice jewelry.
Broke people love their gold and diamond rings, their sparkly earrings, their expensive watches, and their multiple gold chains.
These are vanity goods, loud and flexing all over the place. And just like their expensive designer clothes and shoes, broke people love wearing their jewelry and they wear every dollar they have.
Don’t follow this broke route. It’s going nowhere. Invest your money in stocks and shares in a business or even an investment property.
And gold itself is a great asset to invest into, particularly now with all-time highs, but leave the gold in a bank, not on your fingers.
Thing 11–Expensive dates
Now, we all love a nice day out or a night out to get away from it all and have a nice break. But broke people will tend to go all out.
They will go into debt, borrow money for the date. They believe expensive and costly, the flex, is far better and more important than just spending time together.
Being fancy is not always better. Being thoughtful and considerate is far better than going into debt.
Borrowing money to go on a date just doesn’t make any sense. It’s lazy thinking. Go to a nice beach or to a park or take a drive to a national monument.
Overspending and going into debt is the easy route. Put some thought into it. If you have a solid relationship and you enjoy time together, don’t go out and flex when you can’t afford to. A nice quiet walk in the park and an ice cream will go a long way.
Thing 12–Impulse purchases
Broke people are the absolute champions at impulse purchasing. And as impulse purchases add up fast.
In 2024, Americans spend $2,000 a year just on impulse purchases. Now, it sounds like a lot, but it’s only about $6 a day. And I know people that spend far more than $6 a day on impulse purchasing.
It’s the candy at the store or that nice mirror or cushions you see at HomeSense or those shoes you walk past at 20% off.
Now, broke people will see them as insignificant purchases, but as we’ve discussed, we know they add up.
And spending this money is just robbing yourself and your future prosperity all for an impulse purchase. And why do that? Buying stuff you’re just walking past.
Conclusion
So, here’s the thing. None of these habits are bad in isolation. The problem is these are the regular habits for broke people.
And with a financial life in a mess, these are the worst. It’s like pouring gasoline on a raging fire.
Broke people will spend like there’s no plan, there’s no discipline, and there’s no tomorrow.
Now, if any of these resonated with you, then that’s great. It means you can recognize them and you can put some positive action moving forward.
And no, I’m not talking about sweeping life-altering changes. I’m talking about small steps.
Small steps like track your spending, cut out a few money wasters, and instill some good habits.