The Number One Tip to NOT be Broke

Do you want to keep your finances in check? Do you hate making budgets? If you want either of these, then I suggest you take very detailed notes. Let’s go.

Remember that time when you needed to buy something important and traveled all the way to go get it just to find out it was too expensive for your budget? I’ll use my brother as an example. Let’s call him Conrad.

Conrad and myself have recently started investing in the stock market on our own. We use robinhood, for the brave souls that are interested. We had a competition to see who could make the biggest gains within a year.

Shortly after starting, Conrad bought a motorcycle. This completely wiped out his funds to invest. He bought a liability rather than an asset. This prevented him from pressing more funds into his stock portfolio.

I however, have moved nearly every cent of my extra cash flow into my portfolio. This had opened the doors to buy higher value stocks. I spent my cash flow on an asset rather than a liability.

Due to this, I have seen much higher gains than my little brother. If I remember correctly, he lost about 5% of his portfolio’s worth. My portfolio has risen 35%. That’s a 40% difference!

There are a lot more factors that have gone into my success and his failure, but the one I’d like to point out was his spending of funds. This held him back in the beginning, limiting the amount of money he stood to gain.

So, my number one tip to not be broke, is to not spend your money!

I was just kidding about the notes earlier. You really don’t need them for this simple tip.

All you need is mental discipline. However, it is easier said than done.

Most individuals generally gravitate toward instant gratification. Spending your money on things for a more immediate and lesser satisfaction, rather than delaying the gratification and allowing the reward to build up.

There is a famous developmental experiment commonly called “the marshmallow experiment” showing benefits of delayed gratification.


 In summary:

  • Child placed in a room with a single marshmallow.
  • Experimenter gives child two options before leaving a child in a room alone.
    • Eat the present marshmallow and forfeit an extra reward.
    • Wait the full 15 minutes for the experimenter to return, and receive an extra reward.

In follow up studies, the children that delayed their gratification tended to be more successful later in life.

Here’s a Ted Talk explaining it in more detail. MarshMallow

If you can master the art of delaying your gratification, you will reap many great rewards.

One way to start practicing, is to stop spending your money on instantaneous gratification items. Put it somewhere that it will grow. There are plenty of options for this, such as a Roth IRA.

As an added bonus, you get to throw those budget forms away. No need to budget money that you’re not spending!

Today’s Lesson: Don’t spend that extra hard-earned money. There are better options for it that will sky rocket you towards a life where “broke” won’t be in your vocabulary.


Stay Golden.


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