It is normal to be broke occasionally. And this is mostly because of the gap between the time you need money and the time you receive money. This gap depends on a variety of factors. For those who depend solely on salary income, how soon your employer pays your salary determines this gap.

And for those who earn income by providing services or goods, this gap is determined by when your customers pay you.

However, it is abnormal for you to always be broke, not having money to meet your basic needs and obligations. It is a symptom of money habits.

The following are prescriptions that will help you overcome being broke all the time. They are practical and you most likely know about them or do them occasionally. But to avoid being broke all the time you must practise them religiously.

List the things you need money for on a regular basis and determine the cost. These include food, transport, airtime, utility bills, children school fees, house rent.

Make a detailed list of the quantity of these things you need every day, week and month. Estimate the cost of each item and add the costs together. This gives you a rough idea or estimate of how much money you need daily, weekly or monthly to enjoy these things.

Then compare your present income to the cost of your needs. This helps you know whether you are making enough money to cover your basic needs or not.

If your present income level covers the cost of the needs on your list, then allocate your income to each need.

Some people do this but when the income comes, they spend impulsively on things not on their list and before they know it, they lack money for their needs and they are broke, go begging or borrowing.

So how do you avoid this? One way is to pay ahead where it is possible. You can pay your electricity, water bills, and children’s school fees ahead.

I know someone who pays his children’s school fees in advance. He divides the school fees into months, and when his income comes, he transfers the monthly portion of the fees into the school’s account and keeps the transfer receipt.

You can also buy food and essential commodities in bulk. You can buy the quantity of garri, rice etc you need for the month immediately your income lands in your account.

These are one of the practical ways smart people avoid being broke. Since you are smart and you want to avoid being broke, you can also practise these small habits.