10 Signs Someone Is Secretly Broke, According To Frugal Living YouTuber Austin Williams
Written by
Chris Adam
Edited by
Amen Oyiboke
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Millions of Americans think they’re hurting financially. In fact, according to a recent MarketWatch survey, nearly half (48.6%) consider themselves broke.
Some of these consumers may be secretly broke, where they look rich on the outside but have no money left because they spent it all. Frugal living influencer and YouTuber Austin Williams said certain signs may give these people away.
In a recent video posted to YouTube, Williams talked about 10 such signs that someone may be secretly broke.
Their Lifestyle Doesn’t Match Their Job
Not all salaries are enough to let people buy expensive things and live a lavish lifestyle. According to Williams, if someone’s lifestyle doesn’t match their job, it might be a sign they’re secretly broke and using debt to afford their way of living.
“We’ve all met this person before who has the nicest of everything and is always doing fun things and when you ask them what they do for a living — what they tell you doesn’t make any sense their lifestyle doesn’t match their job title,” said Williams.
They Confuse Income for Wealth
According to Williams, someone can have a high income, be secretly broke, and lack wealth. They may confuse income, the amount they earn, with wealth, the value of the assets they own.
Someone who’s secretly broke may be spending all their income and have none left over to build wealth.
Their Car Is Substantially Nicer Than Their Home
Here’s a way to find out if someone may be secretly broke without even talking to them. If they have a car that seems way too fancy when you see their house or apartment, it may be a signal they’re spending a lot of money on that nice ride and don’t have much left in the bank.
When They Get Extra Money, They Immediately Spend It
It might be a pattern for someone who’s secretly broke to immediately spend any money as soon as they get it. That means there are no plans to put away some of that extra money to build savings.
They Talk About Spending Money They Haven’t Made Yet
Someone who’s secretly broke and spending all their income may talk about their plans to buy stuff with the bonus that hasn’t even come in yet. They don’t get a chance to get ahead financially because they’re constantly spending every penny they bring in.
“They have the attitude of spending every last penny they make even if it’s future money,” Williams said. “If you can’t afford to buy something right now you probably shouldn’t be buying it with ‘future money’ and instead you should save and invest that money so you get to the point when future money comes in it’s not a big deal.”
There’s No Rhythm With Their Spending Habits
It can take some work to successfully manage money. For someone who’s secretly broke, they may have no rhythm with their spending habits. Instead of slowing down spending when they make a big purchase and spreading it out over time, they may make a series of such purchases around the same time.
They Have No Regard for the Small Things
When it comes to successfully managing money, small things can add up to big problems. Someone who’s secretly broke, per Williams, may have no regard for small things such as daily coffees and regular food deliveries. These relatively small charges can quickly add up to big problems for the budget.
They Count Down the Days Until Payday
Many workers get excited about the upcoming payday. But someone who’s struggling financially and living paycheck to paycheck may be relying on that next payday to make it through with rent and groceries. Someone who’s secretly broke may be counting down the days until payday because they’ve already spent all they had.
They Live 100% in the Present
Williams said that when someone is spending all of their money on present-day things, they don’t have any left over for future security. One way to overcome this is to try creating a budget and deciding how much money to spend for the week.
They Try Very Hard To Look Rich
It can be tempting to want to buy nice things to impress others. Williams said someone who’s secretly broke may be spending all their money on nice things to look rich to others. In truth, they’re struggling financially because all of their income goes to pay for those things.
“The truth about real rich people is that they often don’t look rich, but they live very modest lifestyles so they have money left over to put towards wealth-building assets,” he said. “That’s what makes them rich — living a modest lifestyle so they have more money to put towards wealth building. Because if you spend all your money at the end of the day, you might have a lot of stuff but you have no wealth.”
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Amen Oyiboke-Osifo contributed to this article.
