Hi, I’m Renée, a finance and business journalist, writer and content strategist. The Budgette is about single finances and is published twice a month to more than 2,000 subscribers. I prefer to write when I have something to say versus writing because I have to. It gives me time to speak to financial, legal and other experts. When I’m not here, I write and do strategy for other publications and brands. If you want to pay me for my work, that’s great. If you want to work together, message me or you can find me on LinkedIn.
I’ve been feeling a bit broke recently. Not poor, let’s be clear about that. I wondered why I was feeling this way considering I hadn’t spent a lot of money recently. The first place I went was the internet because that’s where you find accurate and correct information, right?
So according to the internet, AI, and randos, there are several reasons why I might be feeling broke.
Financial stress: The most obvious reason for feeling broke is financial stress. If you're struggling to make ends meet, pay bills, or save money, it can lead to feelings of financial insecurity.
Me: no, not really. I can pay my bills and I’m making ends meet. This isn’t the reason. Score: 0/5.
High expenses: If you have recently had a significant increase in expenses, such as medical bills, unexpected repairs, or other financial obligations, this can leave you feeling like you have less money than you'd like.
Me: Hmm. I do need to call a plumber because my bathtub is draining slowly. The plumber I like costs $270/hour. (I should have gone into the trades, damn.) I also have to make an eye appointment and if I need a new prescription, new glasses will be expensive. I do have an emergency fund and I budgeted for the glasses. The problem is, I just got my emergency fund to a place where I’m happy with it and I don’t really want to touch it, so this irritates me even though I know this is what it’s for. Let’s mark this down as a maybe. Score: 3/5
Income issues: A decrease in income or job loss can lead to feelings of being broke. Job instability or underemployment can also contribute to these feelings.
Me: I do work a lot of contracts and freelance. I’m very fortunate that I’m pretty secure right now so this may be a small factor. Let’s score this with 1/5.
Lifestyle inflation: As people's income increases, they sometimes adjust their lifestyle accordingly, spending more on non-essential items. When this happens, it can create the perception of being broke because your expenses have outpaced your income.
Me: Yes, for sure. I loooove fall clothes and the holiday season has started so I’ll be spending more in the next two months. Plus I did just go back to the gym and physio because I have no core strength. (Was I taking breaks and scrolling through Moda Operandi’s curated flats collection for S/S24? Yes. Did I remind myself how ballet flats effed up my feet the first time around? Also yes). Score: 3/5
Debt burden: High levels of debt can make you feel financially constrained. If you have a significant amount of debt to manage, it can limit your disposable income.
Me: No. Not this one. I just paid off my credit cards after I paid for the Canadian Securities Course, which was $1681.35, with a 10% discount. Maybe it was because I had this on my card? Score: 1/5.
Comparison: Comparing your financial situation to others who appear to be doing better can also make you feel broke. Keep in mind that social media often showcases the highlight reel of people's lives, not their financial struggles.
Me: No. I try not to compare myself to others, especially random strangers on the internet. Score: 0/5.
Lack of financial planning: Not having a clear financial plan, budget, or savings strategy can make it seem like you have less money than you should. A lack of financial organization can contribute to feelings of being broke.
Me: I met with my advisor a few months ago to check in on some financial decisions. I feel fairly confident with my plan. Score: 0/5.
Emotional factors: Emotions can play a big role in how you perceive your financial situation. Stress, anxiety, and fear can all make you feel financially insecure.
Me: Apart from wondering if I have enough to pay income tax and HST, nothing too worrying here, except the plumber. I am playing with tax calculators a lot though. Score: 2/5.
Inaccurate perception: Sometimes, people feel broke even when their financial situation is stable. This can be due to a skewed perception of their finances, influenced by personal beliefs, insecurities, or societal pressures.
Me: This feels like it but not quite. I’m not feeling societal pressures or insecurity but there’s something there. Score: 1/5 because there’s something to unpack.
Future concerns: Worries about your financial future, such as retirement planning or saving for major expenses, can lead to feelings of inadequacy in your current financial situation.
Me: Yes. Yes, this. I’m at the point in my life where I wonder if I’ll have enough to retire on. Plus I’m saving for a trip next year and I’m going hard on it. That means I’ve got less disposable income because I’m trying to save all the money before I leave for the trip so I won’t have credit card debt when I return. It’s also tough as everything else has gone up so I’m feeling stretched and deprived.
I’ve given each dollar a new job as Jackie Porter, CFP, mentioned in my Rich Aunties story, and I think I’m feeling a bit constrained with my spending. Score: 5/5 and an acknowledgment that I’m a privileged person.
So how does someone stop feeling inadequate about your financial future? Elke Rubach, president of Rubach Wealth says you need to have clarity about your finances.
“You need to understand your earning capacity, your spending needs versus wants and see what works for you,” she says. She points out that so many people are keeping up their neighbours and influencers that they miss the details that are important to them.
“So until you figure out what's important to you, what you can and can't do, and have a bit of realism about your life. You're never going to be at peace.”
Ruback says to ignore what your neighbours and influencers are doing and figure out what's important to you. It’s scary, she acknowledges because the message we get from social is that you're successful based on how much you earn.
So for me, for example, what’s important to me is having a longer break after working non-stop for 3.5 years and putting money towards a possible retirement (lol). I need to stop looking at it as short-term pain. Instead, I need to refocus my thinking to, ‘I’m building towards a medium- and long-term goal that ideally will give me more choice.’
We’ll see how that goes. I’m a worrier when it comes to my future. I can’t help it but I can at least try to mitigate it.
Fyi:
I plan on writing about my trip for my paid subscribers. Not a travel diary but what we paid, what we spent and the rationale behind decisions. That will launch in 2024.
This week’s readings:
I did a project for the Forbes Content Studio for J.P. Morgan on payments. Payments as profits. (Forbes)
I did journalism around insurance: Great inheritance equalizer for business-owning families: life insurance (Canadian Family Offices)
If this isn’t a reason to have a will. I do love family drama when rich people fight. A Tale of Family Intrigue and Inheritance (The New York Times)
Please, please, get a will. The Inside Job (Toronto Life)
Which money language are you? The Nine Money Languages (From Forbes)
Alarm bells are ringing: What markets are trying to warn us about the economy (CBC)
