10 Year Target
Jul 4 · 3 min read

At the end of each month, I get a push notification from my bank. They then tell me that my debit card account is almost empty. Still, I probably have more money than most of my friends. That is because I choose to stay broke.

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The Difference Between Afford Something and Have Money to Spend on it

I always use to say that it is a fundamental difference between not having enough money to spend on a thing than to not afford it. At the end of the month, I could easily afford going out in town with friends. But that does not mean I have money to spend. Actually, I can afford to buy a new car. But if my current car fell apart I am not sure I would have any money to spend on a new one.

Do you understand the difference?

It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for. — Robert Kiyosaki


Why Stay Broke?

Now some of you are thinking that being broke means you have to cut back on everything and live like a homeless person. That is not what I mean. What I mean is that you calculate your expenses, add a little extra that you are allowed to spend on some fun or clothes or whatever. You then invest whatever is left. So by the end of the month, you are broke. This you repeat every month. And whenever you receive a little extra, you put the money to work and you stay broke,

So, what is the purpose of staying broke? Staying broke does not mean that you throw away all your money or stop working so you don’t have an income. No, staying broke means that as fast as you get your hands on some money they are put to work and out of reach. This means that the money you have at your disposal is what you have for your monthly expenses. And after your monthly expenses, you are broke. The opposite would be to save whatever is left at the end of the month.

My philosophy is that if I have any money I invest it in new ventures and not have it sitting around. — Richard Branson

Everyone dreaming of financial freedom knows that in order to achieve that you have to put your money to work. So by staying broke, you have more money to invest than you would have if you always had an extra $500 laying around. Temptations are also easier to avoid when you do not have any more money on your account. It is easier to say no when you can say yes.

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Life As a “Broke” Person

After a while, you get used to this type of living. If you receive a bonus at work or having income from a side-hustle, the money is immediately put to work. By doing this over time you will develop a certain way of thinking. Frugality will be a natural habit for you and you will start to think as the rich do. Every dollar will be worth more than a dollar, and a dollar spent is yield loss.

For a person focused on a future of financial independence having the quote “stay broke” in the back of your mind can really be helpful.

Are you broke? What do you think of this approach?


This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions

Making of a Millionaire

Stories about money, personal finance and the path to financial indepndence.

10 Year Target

Written by

Investor in my early 30’s determined to generate enough assets in the next 10 years so my return-on-investments matches my expenses. https://10YearTarget.com

Making of a Millionaire

Stories about money, personal finance and the path to financial indepndence.

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