Being financially broke is a position no one would like to be in, atleast that’s what you think. But what if I tell you that being broke in your 20s is actually one of the best things that can happen with you.
Now don’t get me wrong, I hope and pray that you don’t get in a financially grim situation but what if you somehow get into such a situation or infact are currently experiencing a financial turmoil?
The aim of this post is to tell you what you could gain from being financially broke particularly in your 20s because that’s just the beginning of your life and you would still have time to fix things.
What does being financially broke mean?
To be broke may mean that you have no money, but it’s a temporary situation. You’re just one good paycheck away from financial stability. It essentially is a situation when you are all dried and have almost nothing.
This could happen due to a lot of reasons. One possibility is when your expenses exceed your income by great margins. Now I would like to clear at this point that the kind of broke I am talking about does not arises from spending excessively. This is not a good practice at any point in your life and is neither advisable.
Here, I am talking about being financially broke while trying something new. This new could be a new business, profession, new skill or any other thing that would eventually add up to your experience and skill set. So, I believe by now, it must be absolutely clear that losing your money in a casino doesn’t count for a valid and justifiable reason for getting broke.
Additionally, what is the difference between poor and broke? Contrary to popular belief, “poor” and “broke” do not mean exactly the same thing. Both involve a lack of money. However, being poor is a mindset. Being broke is only a temporary condition.
Why Being Financially Broke in Your 20s is actually good?
Let’s come to the point now. How can anyone justify being broke? Well, there some pretty solid reasons that has forced me to say this. Let’s discuss them in detail.
You Learn What Others Learn at 30s or 40s
Well, the best thing about being financially broke in your 20s is that you learn a lot about how money works and how you should handle it, much of which people get to know in their 30s or 40s.
Most people are of two types. They either lose their money at nonsensical things when they are in their 20s or they save it all, by cutting their expenses, and sometimes even needs. I don’t mean to ridicule this habit of saving from early in your life in any way.
However, if go broke in your 20s by exploring new and meaningful things then are actually equipped with greater experience and intellect required to avoid this situation later in life.
I bet, a lot of your knowns and friends will eventually face this situation, when they would feel the dearth of money later in life but at that time most would be unknown to the ways of handling such a thing just because they didn’t experience it earlier when they had nothing to loose. It becomes hard to tackle such a situation because at the age of 30-35, you have a lot of other responsibilities as well. So, if you have faced this financial bankruptcy earlier, you are well versed with the ways required to live a good life ahead.
You virtually have nothing to loose
In your 20s you essentially have nothing to loose. So you can try out various things without the worry of being broke. At a time when your career starts, even if you go broke you still will have time to recover everything you lost and even add much more wealth to your portfolio.
Most people don’t explore opportunities in their 20s just because of loosing at a time when they actually don’t have much to loose, which I believe is a grave mistake.
Broke folks master money-tracking
I again and again reiterate the importance of tracking where your money goes becasue this helps you to get a real hold of your money. When money is in short supply due to pay inequalities, inaccessible healthcare, and the rising costs of living that pay rates have yet to keep up with, financial awareness becomes more of a survival tactic than a money habit.
Broke people are less likely to make many of the financial mistakes that wealthier people do-and are more adept at arriving at accurate conclusions as they relate to determining value and perceived expense.
Suppose I go broke tomorrow when I am still young, and If I only had enough money for three bills, yet had five to pay? Then I become an expert at prioritizing-via analyzing every payment term, knowing when late fees would be applied, and understanding how long I would have before services got cut off or accounts would be transferred to a collection agency.
This is what I believe helps people broke in their 20s to go and achieve much greater financial success later in their life, just because they are aware of where and why is their money going and how should they control and direct it to achieve their goals.
Every expense is a mindful decision
What many financial experts fail to realize is that poorly thought-out purchases on a whim are a privilege that broke people just don’t have. A broke person is routinely required to analyze every purchase-because one small slip-up could result in severe consequences.
He learns to differentiate between “wants” and “needs”-a concept that people who do have money admit to struggling with. Broke people are less likely to make many of the financial mistakes that wealthier people do-and are more adept at arriving at accurate conclusions as they relate to determining value and perceived expense.
This is because they are much more conscious of their spending. Many financial experts believe that broke people are broke because they make bad choices. But when you’re broke, the problem isn’t that you’re making bad choices. The problem is that you don’t have enough choices-so you make the best choice from the options given.
You Learn to Hustle in Life
Being broke puts you in a situation where you find it difficult even to bear your necessary and essential expenses. But rather than complaining about the little you have – you start finding ways to improve your life. After all, one of the best things being broke teaches you is how to hustle.
You sacrifice all your free time (with a job that’s not even in your field) so that you can pay the bills and build an emergency fund. You do everything possible to make a living. You try your hands at different ventures, experience new things and improve with a much rapid pace as compared to your peers.
All this things eventually make you a better individual both financially and mentally. You understand the importance of money and value you things.