Why am I always broke? How to break the cycle and save money

Wondering why you’re always broke? Discover spending habits, money traps, and budgeting tips that help Australians stop living pay to pay. Even if your financial beginnings weren’t perfect, it’s never too late to change your money story.

Were you ever taught how to manage money?

So many Australians are stuck living pay to pay, wondering, “Why am I broke all the time?” or “Why don’t I ever have money left over?” It’s especially tough when the cost of living keeps rising, groceries seem to eat half your pay, and your bank account ghosts you a week before payday.

According to Anglicare Australia’s 2024 Living Costs Index, a person on minimum wage is left with just $33 a week after paying for rent, food, and transport expenses.

But I’m here to tell you, being stuck in a financial rut doesn’t mean you’re bad with money. It means no one taught you how to manage it properly. Most of us were thrown into adulthood with a debit card, a phone plan, and zero financial literacy. No wonder so many people are feeling the pressure.

In my case, I was actually taught to budget, my dad handed me a graph book, a pencil and a ruler as a tween and showed me how to track every dollar and categorise my spending. But there’s a big gap between knowing how to budget and having the maturity to stick to one.

When I moved out young, those lessons went out the window. I was juggling independence, rent, and a fair bit of ‘YOLO’. My first brush with debt? A $500 Target store credit card. I didn’t read the fine print (who does at 18?), and with 19% interest, late fees, and minimum repayments, that tiny limit ballooned to over $1,500.

There were no real-life lessons on credit, debt or bills, just trial and error. Mostly error. That experience (and a few others, sorry Dad!) shaped how I manage money now. These days, mindfulness around my spending, saving, and credit is intentional, not accidental. And that’s the message: even if your financial beginnings weren’t perfect, it’s never too late to change your money story.

This guide will help you understand the reasons you feel broke, even when you’re earning good money, and give you practical ways to shift from financial stress to financial security.

So, what exactly is getting in the way of your financial goals? Let’s break down the everyday financial habits and money traps that might be keeping your budget stuck in the red.

Common reasons you might feel broke (and how to fix them)

1. Subscription creep and invisible spending

Your budget called: it’s time to get on top of subscription creep. Those small, recurring monthly expenses, streaming services, forgotten fitness apps, or random cloud storage upgrades, add up fast. Before you know it, you’re stuck living pay to pay and wondering where your money went.

The fix: pull up your bank statements and highlight every recurring expense. Do you really need five streaming platforms and a meditation app you haven’t opened in six months? Cancel, downgrade or switch to free options where you can. It’s like a money detox.

2. The Buy Now, Pay Later (BNPL) trap

It feels like magic: get it now, pay for it later. But these services often lead to impulse buying, poor money habits, and a queue of upcoming payments you forgot you even made. Suddenly your budget is on life support.

The fix: pause before purchasing. Ask: “Would I still want this if I had to pay full price right now?” If not, skip it. Instead, start saving money in advance for big-ticket items to avoid relying on BNPL.

3. Credit card reliance and high-interest debt

Using a credit card to cover groceries, petrol or even your mobile plan? If you’re only making the minimum repayments, you’re likely paying a fortune in interest. This is one of the fastest ways to stay broke, no matter how much you earn.

The fix: review your credit utilisation ratio (how much of your credit limit you’ve used) and try to keep it under 30%. Focus on repaying your credit card debt using either the debt snowball or debt avalanche method. Better yet, get support from a debt relief organisation like MyBudget.

Download our free 10 Steps to Get Out of Debt eBook, it’s packed with practical strategies to help you take back financial control.

4. No savings goals or plan

“Saving for a rainy day” is a nice idea… until it rains every week. Without clear goals, your savings never really build momentum.

The fix: get specific. Do you want to build an emergency fund? Go on a holiday? Start saving for a house? Set financial goals that are realistic and motivating. This gives your budget purpose and keeps you focused.

Need help setting a savings goal? Try our free Goal Setting Template, paired with our Savings Calculator to see what’s possible!

5. Not tracking where your money goes

You tap your card a few times a day, and suddenly your account balance is screaming for help. Invisible spending is real. Without tracking, it’s easy to underestimate how much you spend on Uber eats, impulse buys, or that third coffee you didn’t plan for, because your brain insisted it was essential to survive to 5pm.

The fix: track every dollar for two weeks. Use a budgeting app, notes app, spreadsheet, or the MyBudget client app. Awareness is half the battle when trying to fix your budget.

Bonus: Emotional spending

Feeling stressed, bored, or “I deserve this” after a rough week? Emotional spending can sabotage even the best budgeting intentions. It’s often a coping strategy that leads to financial self-sabotage.

The fix: build mindfulness into your money habits. Before a purchase, ask yourself if it aligns with your long-term goals or is just a momentary fix. Practise gratitude for what you already have and create a cash allowance for guilt-free fun money, just don’t let it hijack your entire budget.

What’s the best way to stop feeling broke?

The secret? A tailored personal budget plan that actually works for you, and your unique financial situation.

A proper budget isn’t about saying “no” to everything. It’s about saying “yes” to the things that matter. With the right plan, you’ll know exactly how much is coming in, what’s going out, and how to make sure you’re building savings along the way.

A MyBudget plan can help you:

• identify and cut unnecessary or recurring expenses
• get out of debt with a plan that shows when you could be debt free
• set long-term financial goals like buying a house or saving for a holiday
• build an emergency fund to avoid future money stress.

Let MyBudget help you sort out your budget and stop living pay to pay

You’re not alone. MyBudget has helped over 130,000 Australians stop living pay to pay, get out of debt, and start saving with a personalised budget plan.

Get expert support and a clear roadmap for your money, without the overwhelm.

Request a free Personal Budgeting Consultation or call 1300 300 922 to start turning things around today.

Want more tips? Explore our dedicated collection of saving tips and strategies on the MyBudget blog.