So much traditional money advice is targeted toward people who have enough but are just making bad choices or refuse to track their spending — not for those who are actually poor.
It's true that when you're barely living paycheck to paycheck, it's hard to get ahead financially. Here's money advice that's actually useful when you're poor.
Now Available: The Definitive Guide to Retirement Income
Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.
That is exactly what The Definitive Guide to Retirement Income helps answer.1 <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here ›
Enjoy a little luxury to get you through the week
Finance gurus like to tell you how your weekly latte is why you're broke. However, you know that's not the case.
When you're in the depths of working one or more jobs to keep a roof over your head, little luxuries can give you the strength to keep going.
You're not ignorantly spending money; you're consciously choosing to provide yourself with a little mental relief, even if you have to find ways to stretch your eating-out budget.
Find a better-paying job
You can only reduce your expenses to a certain point. The next step is increasing your income. Don't quit your current job until you have a new one, though.
You may need to take a sick day to look for a better-paying job or go to interviews. Make sure your friends and family know you're on the hunt for a new job.
A whopping 70% of people got a job at a place where they already had a connection. Use your network to your advantage.
Be honest about your situation
Let your friends and family know about what's going on in your life. Ignore any prideful urge to resist offers of help and accept graciously if extended.
People can get weird about money, but help isn't limited to offers of cash gifts or loans from loved ones. Dinner invitations, free child care, and hand-me-down clothes are all ways you can accept help without cash exchanging hands.
Released: The Definitive Guide to Retirement Income (Sponsor)
Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan.
That is exactly what The Definitive Guide to Retirement Income helps answer.1 <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn More Here ›
Take advantage of community resources
Communities are often full of resources to help those in need. Food pantries, clothing drives, and medical schools are all places you can receive free or discounted assistance.
If you aren't sure what programs are available in your area, you can start by dialing 2-1-1. That will put you in touch with The United Way. Through that network, you can find assistance with food, utilities, housing, and medical expenses.
Get good at saying no
Being able to say no is a vital skill when you're broke. No isn't just for drinks to celebrate a co-worker's birthday; it's also something you've got to get good at saying to yourself.
It's not about saying no to everything but evaluating when it's the right time to say yes.
Buy quality when it counts
Buy it nice, or buy it twice is how the saying goes. While price isn't always an indicator of quality, there are times when spending more pays off.
Buying a high-quality item that will last you for years is often a better choice. If you spend $80-$100 on a pair of shoes that will last you five years, it's better than a cheap pair you need to replace every few months.
Combine resources
If you have friends, family, or neighbors in a similar situation, you may be able to pool your resources and help each other out.
This could look like swapping babysitting to reduce child care costs. Maybe you share appliances like lawnmowers or washing machines, so you don't need to buy your own.
Get a hobby that benefits you
Hobbies can reduce stress and add fun to your life. Choose a hobby that offers a beneficial byproduct; that way, you're helping yourself. Hobbies like cooking, running, gardening, and reading are all fairly inexpensive and have added benefits.
If you get good enough at your hobby, you may be able to use it as a side gig to earn extra money.
Bottom line
Research suggests if you grow up poor, you're more likely to remain there. Traditional financial advice isn't applicable for those struggling to make ends meet.
Even if it's hard to see past your current reality, the good news is you can take control of your finances.
Up To 5% Cash Back
on Issuer's secure website Intro Offer
UNLIMITED CASHBACK MATCH: Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. Click Apply Now to view important rates and disclosures. Plus, receive a $200 statement credit when you spend $500 on purchases in your first 3 months of account opening
Annual Fee $0 Why we like it
The Discover it® Cash Back is ideal for anyone who loves flexible rewards options.
Cardholders can redeem their cash back for any amount.
Earn 5% cash back on rotating bonus categories up to the quarterly maximum when you activate, along with 1% cash back on all purchases.
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment.
Our partners do not influence how we rate products.
Subscribe Today
Learn how to make an extra $200
Get vetted side hustles and proven ways to earn extra cash sent to your inbox.
Add Us On Google