When you’ve experienced the gut-wrenching reality of being truly broke—counting pennies to afford groceries, dodging calls from creditors, or lying awake at night wondering how you’ll make it to payday—it leaves a mark.
I’ve been there. It’s a chapter of my life I wouldn’t wish on anyone, but it taught me lessons I carry to this day.
Being broke isn’t just a financial state; it’s an emotional one. It changes the way you think about money, what you value, and how you approach your future.
Some habits born from that struggle stick with you, shaping the way you save, spend, and even view success.
If you’ve been through it too, you’ll recognize these nine financial behaviors. And if you haven’t, this might give you a glimpse into the mindset of someone who’s fought their way out of financial rock bottom.
1) They prioritize needs over wants
When you’ve lived through the stress of not knowing where your next meal is coming from, or how you’re going to pay your bills, you develop a real understanding of what’s truly necessary.
Those who’ve been truly broke tend to have a clear distinction between needs and wants. They understand that some things simply aren’t essential, no matter how much they might want them.
Luxuries are often the first thing to go when money is tight. This financial behavior is a survival mechanism that helps ensure that the most important bills get paid first.
Sure, it might be nice to splurge on a new outfit or the latest tech gadget, but when you’re counting every penny, those purchases can quickly become regrettable decisions.
In essence, people who know what it’s like to be truly broke understand the value of money in a way that others might not. They know how to stretch a dollar and make the most of what they have.
2) They are masters of the budget
Budgeting is a critical financial behavior, especially for those who’ve been truly broke.
But budgeting is not just about tracking income and expenses. It’s about understanding where every penny goes, and making informed decisions based on that knowledge.
I remember a time when I had to stretch $50 over two weeks. It was a period of my life where every cent counted, and I quickly realized the importance of budgeting.
I began by listing out my essential expenses – rent, utilities, food. Then, I allocated a small amount for emergencies. Whatever was left over was carefully divided among other necessary but less urgent expenses like transportation and personal care items.
This wasn’t easy – there were days when I had to skip meals or walk instead of taking the bus just to save a few dollars. But this meticulous budgeting helped me survive that difficult period.
It’s a practice I’ve carried with me even now when I’m not in such a dire situation. The discipline of following a budget has allowed me to manage my finances better and build some savings.
3) They embrace frugality
Being broke often means becoming intimately familiar with the concept of frugality.
Being frugal is when you make conscious decisions to save money wherever possible. This could mean:
- Choosing to buy items second-hand
- Opting for the generic brand at the supermarket instead of the more expensive name-brand product
- Cutting out non-essential expenses entirely, like cable TV or monthly subscriptions
The Great Recession that began in 2008 saw a significant increase in thrift stores and consignment shops as people sought to save money. This trend has continued even as the economy has improved, suggesting that once people adopt frugal habits, they often stick with them.
Living through financial hardship teaches you to appreciate the value of a dollar and pushes you to make the most of what you’ve got.
4) They avoid debt like the plague
Having been truly broke, these individuals have likely experienced the crushing weight of debt. Be it from credit cards, loans, or unpaid bills, debt can feel like a dark cloud hanging over your head.
Those who have been in this position often develop a strong aversion to any form of debt. They understand that borrowing money is not a sustainable solution and can lead to a vicious cycle of living beyond one’s means.
Instead, they focus on living within their means, even if it means making sacrifices. They understand that it’s better to save up for something than to buy it on credit and pay interest.
This aversion to debt is not just about avoiding interest payments. It’s about maintaining freedom and control over their finances. The less debt they have, the more of their income they can use for things that truly matter to them.
In essence, people who’ve been truly broke tend to view debt as a last resort, not a convenient tool for instant gratification.
5) They save, no matter how small the amount
When you’ve been truly broke, you learn to appreciate the importance of having a safety net. And that means saving money, even if it’s just a few dollars at a time.
It’s not always easy, especially when money is tight. But those who’ve experienced financial hardship often understand that every penny saved can make a difference in an emergency.
They might start by putting away small amounts, like spare change or a percentage of their paycheck. Over time, these small amounts can add up and create a buffer against unexpected expenses.
This habit of saving is more than just a financial behavior. It’s a mindset, one that prioritizes long-term security over short-term wants.
People who know what it’s like to be truly broke understand that saving isn’t just about building wealth. It’s about building resilience against future financial hardships.
6) They value experiences over material possessions
When financial resources are scarce, you quickly learn that the most valuable things in life aren’t things at all.
People who’ve been truly broke often develop a deep appreciation for experiences over material possessions.
They understand that the joy of an experience – a walk in the park, a home-cooked meal with loved ones, a good book from the library – can bring far more happiness than the temporary thrill of a new purchase.
This shift in perspective isn’t just about saving money. It’s about discovering a more meaningful way to live. It’s about finding joy and satisfaction in simple pleasures that don’t come with a hefty price tag.
There’s a certain richness that comes from this kind of lifestyle – one that values relationships, experiences, and personal growth over the accumulation of stuff.
Research backs it up to, suggesting that experiences bring us more long-term happiness than material possessions.
7) They’re not ashamed to ask for help
When you’re struggling to make ends meet, pride can sometimes take a back seat.
I recall a time when I was down to my last few dollars, unsure of how I was going to feed myself for the rest of the week. It was one of the most humbling experiences of my life, but it taught me the importance of asking for help.
I swallowed my pride and reached out to a local food bank. The kindness and understanding I encountered there was a stark reminder that it’s OK to ask for help when you need it.
People who’ve been truly broke often understand that everyone needs a helping hand sometimes. It’s not about taking advantage, but rather about accepting the support that’s offered and using it as a stepping stone to get back on your feet.
Asking for help isn’t a sign of weakness, but a demonstration of strength and resilience. It shows an understanding that we are all interconnected and that it’s OK to lean on others in times of need.
8) They’re resourceful and creative
When money is tight, being resourceful becomes a necessity. Those who’ve been truly broke often become masters of improvisation, finding creative ways to stretch their resources and make the most of what they have.
This could be:
- Repurposing items instead of throwing them away
- Learning DIY skills to avoid paying for repairs or services
- Bartering goods or services with others to save money
These individuals understand that sometimes, you have to think outside the box to make ends meet. Instead of seeing limitations, they see opportunities for creativity and innovation.
To them, being resourceful is not just about surviving. It’s about thriving despite financial limitations.
9) They never lose hope
Perhaps the most important financial behavior of those who’ve been truly broke is their relentless optimism. Despite the hardships they’ve faced, they never lose hope in a better future.
They understand that their current financial situation is temporary, not a life sentence. They hold onto the belief that things can and will get better.
This optimism fuels their determination to improve their circumstances. It drives them to work hard, make smart financial decisions, and never give up no matter how tough things get.
Their hope and resilience is their most valuable asset. It’s the one thing that can’t be taken away from them, and it’s what keeps them moving forward even in the face of adversity.
Final thoughts
Being truly broke changes you in ways you don’t always realize until you’re on the other side. The financial behaviors you develop become part of who you are.
These 9 habits aren’t just survival mechanisms; they’re powerful tools. They remind you of where you’ve been and help ensure you never go back.
If you see yourself in these behaviors, take pride in them. They’re proof of your resilience, resourcefulness, and ability to adapt in the face of adversity.
You didn’t just survive being broke—you came out stronger, wiser, and more prepared for whatever life throws your way. And that’s a strength worth celebrating.
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