There is a good article at Kiplinger.com by Erin Burt, about the lessons she learned from being broke. Times are tough for a lot of people right now, so hopefully everyone can learn these lessons and improve their financial situation.

The lessons she mentions in the article are:

    • Know your priorities. Learning early on how to prioritize and to sort our needs from our wants.
    • Debt is a vampire. Learning quickly how debt can steal your money. Making the minimum payments but never making much headway.
    • Have a cushion to fall back on. Life is full of unexpected expenses. If something comes up when you’re living paycheck to paycheck, even a small expense can mess up your finances in a hurry.
    • Set goals and tune out peer pressure. See your situation clearly and don’t compare yourself to others.
    • Small sacrifices add up to big rewards. Whether it’s saving to buy something, or putting away a little money at a time to invest, small changes can add up to big savings.
    • The size of my bank account doesn’t matter. 

      Too many people have the wrong mindset about money. It’s not about how much money you make, but rather what you do with it that will decide your financial future. That’s why I think these are lessons everybody should learn.