7 reasons why you're still broke

Published in Cleo, August 2012

1. You don't direct deposit your earnings

Even if you have good intentions, having all your 5alary deposited into one bank account is like slapping a .spend Me!' sticker on it. 

"Ask your employer to pay 5-10 per cent of your salary into another tank account to remove temptation, advises Nicole Cannon, financial expert and director of Pink Finance (pinkfinance.com.au). 

You won't notice its gone, and you'll soon have a plump pile of savings.

2. You like to blame your friends for making you broke

Trying to keep up with your friends' champagne lifestyle when you're on a goon-bag budget will only cripple your finances. Compromise by suggesting budget-friendly outings instead of exxy ones. “Choose to catch up with friends over lunch or coffee at your local cafe. or have a night in together,” Cannon says.

3. You can't seem to stop at buying just one thing

It’s easy to think "What's one more purchase?" when you're riding high on the wave of buying up big, but small amounts can easily add up, leaving you with zero coin until pay day. 

"To prevent a spending binge, have a set amount in your account the next time you go shopping and transfer the rest into an online account so you can't access it if you get carried away," suggests Cannon

4. You're not smart at paying bills

It can be difficult juggling debt, bills and repayments while trying to stay afloat financially. 

Janine Coy, financial expert for Wealth Within (wealthwithin.com.au), suggests setting up a billing system so you don't get overwhelmed. 

"Keep your bills together and order them according to due date. Review them every week and see if you can extend the date without penalty," Cox says.

5. You spend on 'average' rather than 'awesome'

You're a sucker for cheap, seasonal buys - and they're not nearly as rewarding as saving up for a special statement piece or relaxing holiday. 

"Think of quality clothing and holidays as investment," explains Cannon. 'Holidays give you memories to last a lifetime and good clothes sell you.'

6. Your 're easily sucked in

With department stores and online outlets offering special deals 241/7, it can be hard to sort the bargains from the blowouts-in-disguise. 

You can avoid getting sucked in by researching whether you are actually saving in the long run. 

`Some women tend to seek out bargains, knowing they don't really need what they're buying. Ask yourself – Do I want this or do I need it? 

Think about what else you could be doing with the money, and what you might have to miss out on if you buy it: Cox explains.

7. You're selling yourself short

If you believe your salary doesn't reflect your abilities, arrange a time to speak to your boss about a pay rise. 

"Research and prepare reasons to justify the cost to your employer. 

Call some associations related to your field to know whether the rise you're asking for is realistic," advises Cox. If you don’t ask, you won’t get!

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