How to manage money when you’re broke? 

july 21, 2025

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The book How to Manage Your Money When You Don’t Have Any by Erik Wecks teaches you how to budget and save when you’re struggling financially.

When you’re low on funds, focus on necessities (like groceries) before anything else. Cut out unnecessary expenses and learn how to differentiate needs from wants. 

Needs over wants

Make budgets based on what you have and not on what you wish you did. Calculate your actual income and expenses, and plan realistic budgets to prevent problems later. 

Live in reality

Don’t use debt as a tool or a solution, but only as a last resort due to unavoidable circumstances. Learn to live below your means and avoid debt till the end. 

Debt is a threat

This isn’t optional. Contribute to your emergency fund consistently, no matter how small. Plan for emergencies to avoid financial stress in unexpected situations.

Emergency fund

Don’t only focus on numbers, but on behaviour. Make savings intentional and build healthy habits. Practise self-control and take everyday decisions with your financial goal in mind. 

Choices, not math

Find creative ways to live frugally without depriving yourself of anything essential. Things like bartering, or using coupons, can go a long way in saving more over time. 

Creativity

Appreciate what you have and build gratitude. Create a healthy relationship with money by avoiding impulsive spending and believing in having less is more. 

Contentment

Make sure you’re including irregular expenses like birthdays, car repairs or annual fees in your monthly budget to avoid chaos and panic. 

Irregular expenses

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