How to Overcome Being Broke and Get your Money Right (My Experience)

So, once in a while, almost everyone goes broke in business. Today, you're enjoying a massive cash inflow, and tomorrow, nothing seems to be working.

I've experienced a lot of “broke” periods myself, and I've been able to overcome them and bounce back.

In a recent post, I detailed how I lost a huge chunk of my capital while trading cryptocurrency, and that was the moment I realized I was going broke again and had to do something about it.

It's always a tough process though, and if I had a wish, I wouldn't want to be broke ever again.

So, in this post, I'll share a few ideas I've used to stop the streak of being broke, and how you can use them to get back on track.

Let's get right to it.

Set your Bills in Order

The first step to take whenever you go broke is to set your bills in order.

Bills do not have emotions and don't care if you're broke. So, make sure to have your basic bills settled at least for the next 3 months.

This could include electricity, water, food, etc. Any bill at all that is required for you to keep surviving should be settled.

Downgrade your Lifestyle

Whenever I go broke, the first thing on my mind is to downgrade my lifestyle. That means no more unnecessary subscriptions, no more partying, no more eating out, no more expensive dates, etc.

I cut my lifestyle expenses to the bare bones, as this helps me to survive longer on my current funds until I bounce back.

The worst thing you can do is to keep making the same expenditures you were making when you were more bouyant.

That lifestyle inflation must be cut off if you want to survive.

Find a Job ASAP

If the business you are engaged in has stopped paying you or the changes you implemented don’t seem to be working, then it makes sense to find a job to replace the lost cash flow.

This could be a temporary measure to raise funds to cover your bills or to pivot your business.

But you have to keep the cash flowing in still.

When I lost a huge chunk of my capital in crypto trading, I had to look for a job that could help me raise my lost capital within 6 months.

So, after 6 months, I was able to get to the point I was before the crypto loss.

Learn a High-paying Skill

This down period could be an opportunity for you to learn a high-paying skill that you could integrate into your business or leverage to pivot to another business.

You could find a job that helps you learn a new high-paying skill or strengthen your skill and experience in a high-paying career.

This could come in handy when you decide to launch a new business or set up any money-making venture later on.

Go Back to What Worked

So, the thing is, you went broke because something stopped working or a new idea or venture didn't pull off.

Now, you are broke because of that event. So, what do you do?

You can simply go back to whatever was working for you before that event.

In my case, it was freelancing. I had to take a break from freelance business writing to venture into crypto trading, and it failed.

So, what did I do next?

I simply went back to freelancing and started making money immediately.

So, you could go back to what worked for you or you could undo whatever changes you made that caused you to go broke.

Take a Loan if possible

This is a quick fix, and it could work out for you if you really know what you are doing.

If you're broke because you've run out of cash to continue a promising project, then a loan could help.

You could also use a loan to settle bills, pending when your new venture would start generating an income.

I had to take out a loan to set up a new studio to resume my freelance writing job, and it helped me start comfortably and make money.

Build a Niche Network

This is the period where you have to start reaching out to people in your niche.

You could ask for help on how to solve problems, raise cash, find jobs, or other support. You never know who might be of help.

A good way to build a niche network is to attend local niche events and try to network with other attendees and introduce your business.

In my case, I reached out to other freelancers in my niche and asked for jobs or referrals. And some of them were kind enough to oblige.

Find a Business Partner

An alternative to finding a job is to find a business partner who needs assistance for some tasks you're competent in.

This way, you could negotiate merging your business components or referring clients to each other.

When I went back to freelancing, I didn't start getting clients right off the bat. I had to partner with other freelancers who gave me a few jobs they couldn't do, and they were happy to leave positive feedback which helped me land new clients.

So, a business partnership could be the leverage you need to kickstart your plan to get out of being broke in no time.

Stay Grinding

If there was anything I could have told myself earlier, it would have been to just stay grinding.

In this period when you're broke, you would have so much idle time that a lot of distractions start coming your way.

One way to overcome this is to focus on grinding and making money. Time is not on your side and you have bills to pay.

So, why waste it all away when you can grind and make money? Well, it's all up to you.

Be patient

While you might get anxious about bills and other expenses, you have to be patient if you want to see any result.

I know the feeling of being broke, and I do not want to experience it any time soon. Nevertheless, when you are broke and working your way out of the situation, you have to stay patient while trying to make some money.

Remember, it took me 6 months of grinding every single day to be able to raise enough cash to climb out of being broke.

So, you have to set a reasonable work timeline to enable you to work and start seeing the financial results you desire.

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