Hello Grasshoppa,
Ever wondered why, no matter how much money you make, you always feel broke? You work hard, get paid, & before you know it—POOF! Your bank account looks empty again. The truth is, being broke isn’t always about how much you earn. It’s about how you manage what you earn. Today, let’s break down the real reasons why people stay broke & more importantly, how to fix them.
1. You Spend First, Save Later (Big Mistake!)
Most people get their salary and immediately start spending—paying bills, buying that “must-have” gadget, or treating themselves to something fancy. Then, at the end of the month, they try to save whatever is left. Some people even plan what they can spend after they get their salary. Instead, you should flip the script. Pay yourself first. The moment your salary hits, set aside at least 20% into savings or investments before spending a single ringgit.
Example:
If you make RM5,000 a month, automatically transfer RM1,000 into a separate savings or investment account. Live off the remaining RM4,000. If you wait until the end of the month, there will be nothing left to save.
2. You Buy to Impress (But No One Cares)
Let’s be real, how many times have you bought something just to “flex”? The expensive phone, the expensive bag & the overpriced coffee all because you wanted to look successful instead of becoming successful? You should stop trying to impress people who don’t pay your bills. The richest people don’t waste money proving they’re rich. Instead of buying luxury to show off, invest in things that make you money.
Example:
Instead of buying the latest RM6,000 iPhone just to “fit in,” invest that money into stocks, a side business, or a skill that increases your income.
3. You Have No Budget (Your Money Has No Plan)
If you don’t track your money, your money will disappear. Many people don’t even know where their salary goes. They just “spend until it’s gone.” That’s a guaranteed way to stay broke. Track your spending using an app or go on a budgeting method. One of the simplest ones is the 50/30/20 rule:
- 50% Needs (rent, food, bills)
- 30% Wants (entertainment, shopping, dining out)
- 20% Savings/Investments
Example: If you earn RM4,000:
- RM2,000 goes to necessities
- RM1,200 goes to things you enjoy
- RM800 is saved or invested
If your expenses are too high, cut down on the “wants”, subscriptions & redirect more into savings.
4. You Rely Only on One Income Stream
If your only source of money is your job, you’re walking on thin ice. What happens if you lose your job or your salary isn’t enough? You stay stuck. One of the lessons that I have learned was during the pandemic where I realised the importance of savings. You need to start building multiple streams of income. You don’t need to quit your job but just find ways to make extra money.
Example:
- Start a side hustle (freelancing, tutoring, online business)
- Invest in dividend stocks or REITs for passive income
- Sell stuff you don’t use anymore (second-hand market is booming)
Even an extra RM500-RM1,000 per month can make a huge difference.
5. You Don’t Invest (Your Money Just Sits There)
Many people save money, but they never grow their money. Keeping cash in a bank with low interest is like leaving food in the fridge where it loses value over time. Instead, you should make your money work for you. Even small investments compound over time.
Example:
If you invest RM500 a month into an ETF (stock index fund) that gives an average 8% return per year, in 10 years, you’ll have around RM91,000! Just by letting your money grow.
Start small, but start now.
6. You Ignore Financial Education (Knowledge = Wealth)
Most people never take time to learn about money. They don’t understand taxes, investments, or even basic savings. No wonder they stay broke! Treat financial knowledge like a gym for your wallet. Read books, follow financial blogs, and surround yourself with money-smart people.
Example:
Instead of spending hours on TikTok watching nonsense, spend 30 minutes a day reading about personal finance. Over a year, that’s 182+ hours of knowledge—enough to change your entire financial future.
Final Thought: Being Broke is a Choice
The truth is, staying broke isn’t about how much you earn but it’s about how you manage what you earn. The richest people didn’t get rich by luck. They got there by making smart money moves every single day.
- Save before you spend
- Stop buying to impress
- Track every ringgit you earn & spend
- Build extra income streams
- Invest to grow your money
- Keep learning about money
Start today. Because the longer you wait, the harder it gets.
OSS!
