8 Lessons
Some of the most questionable financial advice I have ever received came from people who were struggling financially themselves. Not bad people. Not unintelligent people. Just people whose money habits clearly were not working.
Here are a few real examples of advice and comments I have heard over the years:
- Buy a new car.
- Buy a house; you’re wasting money renting.
- Travel more and stay at the best places.
- Take out personal loans to fund your lifestyle.
- Take out a PPP or business loan while you still can.
- Treat yourself.
- Get the latest phone; you have to stay up to date.
- You only live once, buy it.
- Go out more.
- Why do you work so much?
- Here’s what I would do if I were you.
- You should spend more and live a little.
- Why do you always wear the same clothes?
None of this advice was malicious. Most of it was well-intentioned. But good intentions do not produce good financial outcomes.
You should not take advice from broke people unless you want to emulate their financial results. If your goal is to end up where they are financially, then by all means, follow their guidance. But if your goal is stability, growth, and long-term freedom, you need to be more selective.
That said, you can still learn from people who are struggling financially. Just not in the way they think.
What I Mean by “Broke”
A broke person is not defined by income alone. It is someone who is financially struggling and or operating with a limited financial mindset. Plenty of people make decent money and still live broke lives because of their habits and priorities.
People who struggle with money unintentionally offer a valuable lesson. They show you what not to do. If you pay attention, their patterns become clear.
Here are eight lessons I have learned.
Lesson 1
Most people are broke because of their choices, not because they are doomed. They can change their financial situation at any point, but many never do because they believe they are powerless. They blame employers, the economy, their upbringing, or bad luck, which keeps them stuck.
Lesson 2
Broke people tend to live above their means and are always waiting for the next paycheck. Their focus is short term. They rarely think about the future version of themselves who will need savings, investments, and options.
Lesson 3
Saving and investing are rarely consistent priorities. If they do save or invest, the money is often pulled out quickly for something unnecessary. There is no patience, no long term commitment.
Lesson 4
Broke people focus on liabilities instead of assets. They buy things that cost money rather than things that make money. Over time, this quietly drains their net worth and limits their flexibility.
Lesson 5
Financial education is not prioritized. Many people stop learning once school ends. They do not seek out new information, strategies, or perspectives, which is why their situation stagnates or worsens.
Lesson 6
There is often a lot of hoping and dreaming, but very little action. Many want a better life without changing daily behavior. They look for shortcuts or handouts instead of building something sustainable.
Lesson 7
A good life is often defined by the ability to buy more things. Appearances matter more than balances. Shiny objects get prioritized over security, which is why the money never seems to stick.
Lesson 8
Spending feels better than saving or investing in the moment. Decisions are driven by immediate comfort instead of future peace. The result is a cycle that is hard to break.
Why This Matters
Broke people are not bad people. But their advice is filtered through habits that are not producing results. Taking financial guidance from someone who has not built financial stability is like taking fitness advice from someone who never trains.
Listen to patterns, not opinions. Watch what people do with their money, not what they say.
If you want a different financial life, your inputs have to change. That includes who you listen to, what you normalize, and what you are willing to delay.
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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 significant financial decisions.