How To Stop Being Broke: 25 Practical Tips
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If you’ve been Googling how to stop being broke, you’re not alone. We’ve all been there, constantly refreshing our banking apps, hoping the numbers will magically say something better than last time we looked.
Being broke doesn’t always mean you’re bad with money. Sometimes it just means your income hasn’t kept up with the cost of living. Bills have gone up, and wages haven’t kept pace. It sucks, but it’s the truth.
Whether you’re stressed or struggling because of rising costs, debt, or years of bad habits, there are a few practical things you can start doing today.
Most people don’t stay broke because of one bad decision. They stay stuck in a cycle. The aim isn’t to be perfect overnight—it’s to gradually replace one cycle with another.
Break the cycle
In today’s world it’s become almost normal to be broke without looking broke.
Don’t have enough money to buy a car? No problem, get one on finance.
Want some new clothes but don’t have the cash? Just use buy now, pay later. There are so many ‘quick fixes’ available that make it feel painless in the moment.
All this makes it easy to carry on being ‘bank account broke’ while living like you’re not. But those costs don’t disappear, they’re just pushed further down the line: when the washing machine breaks and there’s no money to fall back on, or when Klarna comes calling because of missed payments on those ‘must-have’ dresses.
Figuring out finances isn’t always fun or easy, but it’s always worth it to avoid being broke in the long term.
Here are 25 practical ways to stop being broke. Don’t feel like you have to do them all. Pick one or two that feel achievable and build from there.
Quick wins: do these first
Set financial goals
Where do you want to be? It’s easy to focus on everything that’s going wrong, but try looking ahead instead. What would feeling financially secure actually look like for you? It doesn’t have to be sipping champagne on a yacht in Monaco. Maybe it’s simply reaching payday without worrying, building an emergency fund, or having money left over at the end of the month.
Specifically though, what’s holding you back right now? Maybe it’s not being able to cover the essentials, or running out of money before payday. Or perhaps you can manage to cover the bills but don’t have anything left just for you.
Make a plan
‘A goal without a plan is just a wish.’
Once you have some goals in mind, you can start making a plan to reach them. From there, it becomes easier to save money, tighten up your finances, and find small ways to boost your income.
Plug your money leaks
Chances are, there are a few places you’re spending money you don’t need to, and plugging those spending leaks is a good way to start addressing what’s keeping you broke. A money leak is simply where you don’t quite realise where your money has gone.
Have you ever taken out money and then at the end of the week it’s all gone but you can’t quite remember what you spent it all on? There’s a spending leak.
If your goal is to stop being broke, knowing where your money actually goes is the first step.
This is one of the fastest ways to start feeling less broke.
Track spending
Keeping a spending diary is a great way to not only keep track of where your money goes, but also to help evaluate spending and address money leaks. When it’s all written down you can see where you might be overspending and be more conscious to cut back in those areas, which can help you save money and stop being broke.
Even tracking your spending for a week is enough to spot obvious leaks – it doesn’t have to be forever.
💡Tools I use
✔ Monzo – budgeting pots
✔ TopCashback – earn cashback before shopping
✔ Coupert – automatically finds discount codes
✔ AttaPoll – earn a little extra in your spare time
Income or spending issues?
Once you’ve tracked your spending for a week or two, you’ll usually spot a pattern. You’ll get a clearer sense of whether money feels tight mainly because your income isn’t stretching far enough, because spending has crept up, or a bit of both.
If most of your money is going on essentials like bills and groceries, cutting back can only go so far; in that case, finding ways to bring in extra income may make the biggest difference. If there’s more flexibility in your spending, some planning and budgeting can often help you feel less broke month to month.
Create a budget
Creating a budget might sound like a boring chore, but it’s often the quickest way to feel more in control of your money. Knowing what you have coming in and where it’s going makes it much easier to make decisions and spot small changes that can help you feel less broke.
Separate money across accounts/pots
A great way to easily keep track of money and keep to a budget is to separate money across different accounts, or pots. A lot of banks will now let you split your account into various spending or saving pots, making it easy to see how much money you have available for each category.
I use Monzo for this, because its Pots make budgeting much easier. You can create separate pots for bills, groceries, holidays and more, making it much easier to see exactly where your money is going. If you sign up through my referral link, we both get a cash bonus.
Examples of pots you might have include:
- Bills
- Groceries
- Subscriptions
- Eating Out
- Holidays
Be frugal
Being frugal doesn’t mean being cheap or never enjoying yourself. It’s about being more intentional with your spending and cutting back in areas that don’t really add much value to your life. Small changes here can make a noticeable difference over time.
One of the easiest places to start is at checkout.
Use coupons & cashback
Why spend more where you could spend less?
Firstly, before you buy anything online, check whether you can earn cashback through TopCashback (currently offering a £21 sign up bonus) or Quidco (£10 bonus). It only takes a minute and can save hundreds over a year. I’ve personally earned well over £1,000 in cashback over the last few years, just by clicking through before I shop online.
Secondly, always search for discount codes or coupons: you might as well save money where possible. If you’re shopping online, Coupert is a handy tool that automatically searches the web and applies available discounts at checkout, so you don’t have to hunt for codes yourself.
Here are some other simple frugal tips to save money:
Meal plan
Meal planning is a really simple way to save money on groceries. It leads to a lower grocery bill as well as meaning you’re more likely to avoid food waste.
- Make a plan of meals for the week.
- Check your cupboards to see which ingredients you already have so you can use them up first and don’t buy any extra.
- Make your shopping list according to your meal plan.
- Stick to the list when shopping.
Shop second hand
Choosing to buy nearly new and used can save tons of money. People often sell on things in great condition that have barely been used, so you can pick up some great bargains and save money. Some examples of things you can usually find second hand are furniture, clothes (particularly baby clothes), toys and electronics.
There are so many places to shop second hand, such as Facebook marketplace, gumtree, eBay, buy/sell apps such as Depop and Schpock, Preloved, and even in the classifieds of your local paper. Charity shops are a great place to browse too.
Don’t impulse buy
If you’re grocery shopping, take a list and stick to it. For bigger purchases, try the sleep on it rule. This gives you chance to work out if you really need or want something.
Save for large purchases
Try to save up for things rather than put them on credit. This is a great money habit to have, and means you’re in more control of your finances, and you don’t spend what you can’t afford. It’s delayed gratification sure, but you’ll feel good for it, and your wallet will thank you in the long run!
Do sweat the small stuff
It’s the small purchases that add up to put the biggest strain on finances. If you’re struggling with money you’re probably not going to suddenly buy something for £2000. But a weekly £25 takeaway, a daily £3 coffee, those small things that don’t seem enough to make a difference can really build up. Consciously deciding to cut down the small spending can have a big impact.
Even freeing up £15–£30 a month can make a noticeable difference over a year.
Try the cash envelope system
If you find it all too easy to just swipe your card without thinking about the costs adding up, it might be worth trying the cash envelope system for spending. This is where you take your allotted budget for spending and put that amount in an envelope, which you use for every purchase in that area. When your money is gone, it’s gone. This means it’s easy to see how much you have left and makes it harder to overspend.
You don’t need to do all of these to stop being broke. One or two changes done consistently matter more than ticking every box.
Once you’ve tightened up everyday spending, it’s often easier to start tackling the bigger, heavier stuff – like debt.
Make a debt plan
Once in debt it’s easy to stay in debt. The more you borrow the harder it is to pay back. However, paying down debt is a vital step towards not being broke. Even if you can only afford small repayments, every step towards getting out of debt is a step closer to reaching your financial goals.
If you have debts, take a good look at them and see how you can best tackle getting them paid off. It might mean attacking the debt with the highest interest first to cut down the overall amount you have to pay back, or you might want to look at trying to shift some onto interest free credit cards to avoid those high charges.
Improve credit rating
If your credit rating is bad, it can make it hard to qualify for better credit cards, or to be able to get any kind of finance at all. Taking steps to improve your credit rating can improve your financial prospects.
Steps to improve your credit score:
- Make sure you’re on the electoral roll
- Always pay bills on time
- Check your financial links
- Minimise credit applications
- Check your credit file
- Don’t withdraw cash from credit cards
Don’t take on expensive debt
When you’re really struggling, taking out a loan or another credit card can seem like the answer, but taking on expensive debt can be a quick road to more financial difficulty later on. High interest rates can become crippling and lead to more and more debt that’s harder to recover from.
Try to avoid high interest rates, don’t take out credit you can’t afford repayments on, and always, always stay away from payday lenders with extortionate rates.
Pay bills on time
Try to make sure to pay bills on time, as late payments can lead to extra charges and services being stopped. Most bills can be set as direct debits, and if not, setting reminders of when they’re due can help.
Neither a borrower nor a lender be
Both borrowing and lending money can put you at the mercy of someone else. Where possible, limiting both can make managing your money easier.
Ask for help
If you’re really struggling, ask for help! Talking about money seems like such a taboo subject, but it’s something that affects us all, and struggling with money is really common. There’s no shame in asking for help, and there are loads of organisations who can help, such as Citizens Advice or debt charities like StepChange (who offer free, confidential support).
Save money
If you’re already broke, it might sound ridiculous to try and save money, but building up savings, especially an emergency fund is a key part of breaking the cycle of being broke.
It doesn’t have to be a lot – even small, irregular amounts can help build a buffer over time.
Lower bills – switch and save
There are so many companies offering different deals that it’s usually possible to find a cheaper deal. This is true for energy providers, broadband suppliers, TV subscriptions, insurance providers and so on.
Comparison sites make it easy to find the best deal and switch, automatic energy switching can do it all for you, or alternatively if you’d rather not switch, phoning up and saying you’ve found a better deal will often lead to you being offered a reduction in price to try and get you to stay.
Create extra income
If you’re already stretched thin, this isn’t about hustling harder – it’s about small, realistic boosts that fit around your life. Sometimes, even a little extra income can take the pressure off and give you more breathing room month to month.
There are lots of ways to earn a bit extra, from starting a small side business to picking up occasional work like dog walking, babysitting, or virtual admin. The key is choosing something that fits your time, energy, and circumstances.
If you’re looking for something flexible, survey apps like AttaPoll (sign up here) can be an easy way to earn a little extra while watching TV or waiting for an appointment.
Don’t compare with others
‘Comparison is the thief of joy’
Don’t compare your situation to others, as it can lead to feeling down and depressed. It can also lead to trying to ‘keep up with the Jones’ (we’re all about the cliches today) which can mean spending money you don’t have just to try and meet others expectations.
Your situation is unique to you, and focusing on your own plans is much more productive than comparing with other people’s apparent successes or failures.
Appreciate what you do have and try not to dwell on negative thinking.
Live below your means
In the end, how to stop being broke basically boils down to trying not to live beyond your means. Unfortunately it’s not always that simple and if you’re living on a low income it can be difficult to fund everything you need with the finances you have.
You don’t need to overhaul your entire life to stop being broke.
Pick one thing that makes next month slightly easier. Then another when you’re ready. That’s how money stress slowly loosens its grip, through small, doable changes that actually stick.
And if things still feel tight even when you’re trying your best, that’s not a personal failure. Sometimes it’s just a tough season.
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