3 Dangers of Thinking “Everyone Is Broke”
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How an “everyone is broke” mentality holds you back?
It’s no secret that life is more expensive than it was just a few years ago. As a result, many people have seen their disposable income drastically reduced or even wiped out altogether.
Acknowledging this reality is okay. However, when you constantly hear those around you—family, friends, coworkers, etc.—declaring that everyone is broke or everyone is struggling, this can influence your mindset in ways you might not realize—even when you know it’s obviously not true.
Here’s a look at three dangers of thinking that everyone is broke.
1. You ignore money advice (believing it won’t help you)
Despite there being a solution to 99% of financial problems, hearing repeated claims that “everyone is broke” might lead people to dismiss advice that could actually help them. They might believe such advice isn’t relevant because everyone seems to be facing the same difficulties.
I’ve experienced this firsthand when sharing simple, easy-to-implement money-saving tips. Despite their universality and effectiveness, I occasionally get responses like, “I’m tired of hearing this because everyone is broke,” or “This won’t work because everyone is struggling.”
To illustrate this point in action, I once responded to one of these claims and said, “I’m sorry the suggestions didn’t work for you,” and this person legit said, “I didn’t try them.” 😳
2. An “everyone is broke” mindset justifies bad money practices
I’ve seen this a lot when it comes to credit card debt and savings accounts. Some people believe that any time a person goes on vacation, goes shopping, or does anything costly, they are automatically using a credit card and getting into debt, as if savings accounts don’t exist.
Now, I’m not saying this isn’t sometimes the case because, yes, there are people who use a credit card for things they cannot afford and carry that balance for years.
However, this isn’t true for everyone. Some people can use credit without getting into long-term debt. They might use their card to complete the transaction, and then pay off their balances in full every month.
These aren’t rich people either—these are everyday, average people with average incomes who often have a few things in common. They might delay gratification, stick to a budget, have a dual income, live well below their means, or have side hustles.
I recently saw a video of this person claiming that nobody has a three-month emergency fund in this economy, and I’m proud to say that the comment section didn’t disappoint. Most people were like, “No, that’s not true.”
The bottom line: When you convince yourself that everyone is broke or that nobody has cash to save, you might start to see high credit card debt as normal or think that it’s pointless to save up for things.
3. Thinking “everyone is broke” promotes complacency
Another danger is that it can keep some people complacent, where they develop an attitude of “it is what it is, and there’s nothing I can do about it.” As a result, they spend years complaining with no action.
They’re convinced that everyone is in the same boat and believe that better opportunities are either not available or aren’t for people like them.
What’s especially dangerous about that particular mindset is that some people will often pass it on to others, whether it’s to their children, their spouse, or their friends. They start feeding off each other, and the cycle continues. (Related: Get Your GUIDED MONEY MINDSET REFLECTION JOURNAL and Develop Healthier Money Habits in Just 60 Days)
What can you do? Everyone ISN’T broke
First of all, be honest and consider how this thinking has possibly kept you stuck over the years. For example, has it stopped you from budgeting, setting goals, or even looking for ways to grow your income because you felt it would be pointless in the end?
Again, it’s okay to be frustrated and acknowledge the reality of where you are financially, but I think it’s even more important to realize that it doesn’t have to always be this way. For some people, not being broke can be the difference of earning an extra $500 or $1,000 a month, which—if you break it down over 30 days—is attainable. (Related: Download my “insider tips” to becoming a freelance writer and learn how to leverage your existing knowledge to earn money in your spare time from home)
Also, don’t get sucked into conversations about everyone being broke.
Here’s why: Let’s say you have two different friend groups and both groups are currently broke. On one side, you have people saying, “We’re broke and struggling. This has been going on for years, but there’s nothing we can do – it’ll always be like this.”
Meanwhile, on the other side, you have people saying, “This brokenness has gone on for long enough and we’re tired. Let’s get to work so we can be in a different place this time next year.”
Which group would you rather belong to?