I know the title of this blog post and talking about the reasons for why a person would have no money is pretty straightforward, but sometimes that approach is needed if you are going to face your financial situation more realistically.
After all, one of the top reasons for why a person lands on this exact blog post is because they are searching Google for “I can't save money” or “Why can't I save money?”
I believe the first thing a person needs to do when it comes to improving their financial situation, such as getting out of debt, is to realize why they are stuck.
If you don’t know what your problem is, then it will be hard to make a positive change.
Once you confront the reasons for why you are stuck and have no money, you'll then be able to make a better plan to get out of your financial rut.
I understand that some things in life cost money, but I believe that learning how to save money and improving your financial situation can help most people reach their dreams.
Related posts on why you have no money:
- 30+ Ways To Save Money Each Month
- 8 Things To Sell To Make Money
- How To Ditch The Revolving Debt Cycle
The 15 reasons you're broke and have no money.
You believe you have lots of time to pay off your debt.
When I was in the middle of paying off my $40,000 worth of student loan debt, I remember being asked why I wanted to get rid of my student loan debt at my age (I was 24 when I paid off my debt).
I still remember the person saying something about how I’m young and should enjoy my money more now and that I can worry about my student loans later.
Why not just pay off more of your debt now? Would you really rather have that 100th pair of jeans instead of putting more towards your debt?
I know for a fact that I am extremely happy to have paid off my student loan debt.
I still enjoyed my life while I was paying off my debt, and I definitely do not think I was suffering at all.
Plus, there are many other reasons to pay off debt now rather than later, and one of the biggest is that you just never know what may happen in the future. If you wait to pay off your debt and instead spend your money on things that you don’t need, you may fall into a bad situation. What would happen if you lost your job, came across high cost medical bills, or something else?
Wouldn’t you have wanted your debt to be gone?
By waiting to pay off your debt because you think you will have time later to do so, you could be negatively impacting your financial situation. If you have the means to pay off your debt now or, at least, work towards paying it off, then you should make the effort as soon as you can!
You're paying for cable when you can't afford it.
According to NPD Group (a market research company), the average monthly cable bill is around $120. By the year 2020, the average cable bill is expected to be around $200 a month.
If you can't afford cable, then you shouldn't be paying for it. It's really that simple!
By paying for cable when you can't afford it, you are preventing yourself from saving more money. This all leads to you having no money.
You treat your credit card as income.
Your credit card is not a new income source. If you treat your credit card this way, then you should cancel your credit card as you are going into unnecessary debt.
If you are using a credit card, then you should be working to completely pay off your balance each month so that you are not racking up interest charges and late fees.
So-and-so has debt, so it’s fine if you do too.
Many people compare their amount of debt to what others have so that they will feel their debt is “normal.”
An example would be if you are 30 and the average 30-year-old has $10,000 worth of credit card debt (I completely just made that number up). You then use this number as a “guide” so that you can feel more comfortable about your debt.
However, WHO CARES how much debt another person has? How exactly does knowing what the average amount of debt a random 30-year-old has affect you?
Is that person you?
So, why would another person’s amount of debt even matter to you? That makes no sense!
Just because someone else has $10,000 worth of credit card debt from buying too many clothes does not mean that you should too. You never know, this amount may be breaking them on the inside even if they aren’t showing it.
You believe you deserve the items you buy.
Yes, you may be awesome and think you deserve something, but should you really be buying it? Just because someone else bought a 100 inch 3D TV (or a mansion, nice car, gadgets, paid for a crazy-expensive wedding, etc.) that doesn’t mean you should as well.
You might think “oh, well they have a comparable job to mine, so, if they can afford it, then I can too.”
However, you have no idea how this person is paying for it. Maybe they saved for years, or maybe they are just putting everything on their credit card.
By thinking that you deserve everything, you are making yourself have no money. Instead, you should be realistic with your financial situation and only buy what you can truly afford.
You pay too much for your cell phone.
Most people overpay for their cell phone plan.
If you can't afford to pay your bills, pay down your debt, and so on, then you should look at either getting rid of your cell phone (yes, this is possible and some people do go without cell phones) or finding a more affordable cell phone option.
If you are looking for an affordable cell phone service, check out Republic Wireless. They have monthly cell phone plans as low as $15 per month. Read Saving Over $2,000 A Year With Republic Wireless Review for more information. Both my sister-in-law and mother-in-law use Republic Wireless and save a good deal of money by doing so.
You don’t have a budget, so you have no money.
If you don’t have a budget or if your budget is not a good one, then this can be a big reason for why you have no money.
A good and realistic budget can help a person and/or a family manage their money better. Yes, a simple piece of paper where you jot down your budget can actually do this.
A budget can help you realize where you might be going wrong with your finances and how to fix a financial issue that you may be having.
Many people are afraid to create a budget because it means that they will have to actually face their spending. If this is why you don’t have a budget, then please, just face your fears and start creating one today.
You make excuses for why you have no money.
Everyone is guilty of making excuses, and I know that people will continue to make them until they realize that excuses are just that- excuses.
Just think about the last time you said “That won’t work for me because (insert your excuse here).”
As a personal finance expert, I hear a lot of reasons for why a person can’t save money, pay off debt, live the life they want, reach retirement, and so on.
There are plenty of legitimate reasons for why some people have financial setbacks, but there are still many people making excuses for why they can’t achieve their goals or why their life is bad.
The problem with making excuses is that this bad money habit can hold you back, which means that you may never reach your financial or life goals.
To put it simply, excuses prevent you from living the life you want. You’re giving up before you’ve even begun.
Read further at Are Your Excuses Making You Broke And Unsuccessful?
Your car is too expensive.
According to Edmunds.com, the average person in the U.S. spends $483 on a new car payment and $361 on a used car payment.
Yes, I was just as shocked when I read that statistic!
This is sad especially when considering that many take out high-interest rate loans in order to make their car payments. Back when my husband worked in new car sales, he often told me about new car buyers with car loans at interest rates of 20% and above.
While $479 a month may be affordable to some, I’m going to assume that it’s a lot of money for most people. Plus, once you add in gas, maintenance, insurance, taxes, registration costs, and more, the number is going to be much larger.
If you're spending too much money on your car expenses, then this can lead to you having no money.
I think everyone should buy a car that they can actually afford. I am a big believer that your total car expenses should be less than 10-15% of your monthly income in order for it to be affordable.
You confuse “wants” with “needs.”
Some items are needs, but a lot of the things people buy are most likely wants. You may have no money because you confuse your wants with needs.
Remember, the only things you actually need include a place to live, a certain amount of clothing, and food and water.
Some think cell phones, massive homes, gym memberships, cable, going to restaurants, and so on are all necessary, but they really are not. If you cannot afford things, then you need to start cutting these items out of your budget and your life.
You think you will have time to save later.
So many people think that they don’t have to save now because they can save when they are a little bit older.
Well, what are you going to do if something happens to you or if there is an emergency?
Starting now will help you form good financial habits and you'll be better prepared for the future than if you waited.
Learn more at The 6 Steps To Take To Invest Your First Dollar.
You don't have goals, so you can't save money.
You may have no money because you don't have any goals.
People who set goals are 10 times more likely to reach their goals than people who do not. This is why I believe that setting goals and making a plan to reach them is so important.
If you're not setting goals, then you may not be working towards anything and/or you may not be motivated to improve your future.
You don’t think little amounts add up.
You may have no money because you don't think that saving smaller amounts of money will help you.
I once overheard someone saying that they don’t/can't save money because they don’t think it matters. So, even if they have an extra $100 in their budget each month, they will just find a way to spend it because they don’t see the point of saving $100.
Seriously, put that extra $100 in the bank and save it. After one year you will have $1,200.
$1,200 is much better than ZERO DOLLARS.
You don't have an emergency fund.
By not having an emergency fund, you may be causing yourself to have no money.
An emergency fund is something everyone should have. However, according to a report by Bankrate.com, 26% of Americans have no emergency fund whatsoever. This can impact a person negatively and leave them with no money for the times when they truly need it.
According to this same report, only 40% of families have enough in savings to cover three months of expenses, with an even lower percentage having the usually recommended six months worth of savings.
This is frightening to me, as having an emergency fund can greatly help a person get through tough parts in life.
Emergency funds are helpful in situations such as:
- An emergency fund can help you if you lose your job. No matter how stable you think your job is, there is always a chance that something could happen when you will need money fast. What would you do if you lost your job and didn’t have an emergency fund?
- An emergency fund is a good idea if you have a car. You just never know when it will need a repair.
- An emergency fund is necessary if you own a home. One of the lucky things that homeowners often get to deal with is an unexpected home repair. Having an emergency fund can help you if your basement floods, if a hole in your roof forms, and more.
- An emergency fund can protect you in many other areas as well. This includes medical costs for you or your pet, needing to take time off of work, wanting to visit a sick loved one or friend, and so on. The list of reasons for why you might need an emergency fund can be long.
Learn more about this at Everything You Need To Know About Emergency Funds.
You don’t make enough money, so you have no money.
The final reason for why you have no money is because you don’t earn enough of it.
No, there is not one number that fits all.
However, if your expenses are higher than your income, then you are simply not making enough money.
It’s as simple as that.
You either need to make more money or cut back on your expenses. You will never save money if your expenses are higher than your income. I know that this is easier said than done, but something will have to change if you want to improve your financial situation.
Time is money, if you use all your working hours on your day job, your income will not increase over time. You need to earn a passive income that will increase in the future and work for you.
There are many opportunities to earn passive money, for example with automated trading platforms that even keep trading for you while you're asleep!
Plus, the average person watches over 30 hours of TV a week and spends over 10 hours on social media each week. By cutting out time wasters such as these, you may be able to find time to make extra money so that you can start saving more money.
You can learn about how to make more money at:
- 75+ Ways To Make Extra Money
- 9 Work From Home and Travel Careers
- 40+ Side Hustle Ideas and Tips From The Experts
- How I Earned $655 From Random Craigslist Jobs In One Month
- How Working 4 Jobs At Once Has Changed My Life
- How To Find Time To Make More Money
Do you know why you have no money? What are you doing so that you can change that?
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