The difference between being broke and being disciplined can be explained as follows: Being broke arises when people don’t make enough money, which leads to discomfort and short or long term pains.
Even the most frugal people face hardship. Discipline, on the other hand, involves making decisions about spending and saving, sticking to a budget so as to strengthen financial planning.
Being Broke
Someone once said that being broke is inevitable as it is a relative term. Even some billionaires were once penniless. Nobody is impervious to bad luck in the face of macroeconomic headwinds.
There are so many reasons why your bank account does not grow. It could be due to your spending habits. Or it could be that you are not saving. We live in an unpredictable world.
Therefore, you need a financial safety net which involves opening a savings or investment account so that you secure your financial future.
Being “MC Hammer Broke” may be because you are not earning enough. This is common in Nigeria where inflation has stolen the wages of workers. Consider taking a high skill demanding job that will take care of your bills leaving enough to be saved.
A person without a budget is like someone on a boat without a life jacket amid the turbulent waters. Such a person exposes himself or herself to poverty. Start tracking your income and expenses.
Accumulating debts that build into a mountain inhibits financial freedom. Ignore them at your own peril. Sometimes, a dead man pays debts that have been collateralised.
Take a cursory look at what you owe. More importantly, restructure those loans for easy service.
One of the best ways to build wealth from what you have saved is investment.
Investing your money wisely is a way of generating passive income and building wealth over time. If you don’t know how to go about it, seek the counsel of someone who specilises in personal finance and investment.
Discipline
Discipline is a mindset and skill involving purposeful financial management. It entails making sacrifices, delaying gratification, budgeting, saving, investing, and controlling impulses related to spending.
Discipline helps individuals take control of their finances, build savings, and avoid the recurring cycle of being broke .
Discipline is often described as harder to maintain than the discomfort of being broke, but the payoff is financial freedom and stability. It requires consistent effort in managing money, setting goals, and avoiding behaviors that lead to financial instability .
Being Poor is the result of a lack of resources; opportunities, money, and wealth are scarce in your community and it will not change without serious intervention.
Being Poor means that you have a long term problem with money i.e. you never have enough.
You are probably on low wage or unemployed and cant afford to live comfortably. Broke means that at this moment in time you are cashless, this may get better in the future (or not) but right now your pockets are empty.
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