Why Do I Always Feel Broke, Even When My Bank Account Says Otherwise?
Have you ever looked at your bank balance, seen a perfectly reasonable amount of money, and yet still felt like you were on the verge of financial disaster? Feeling broke isn’t always about actual numbers—it’s often about psychology, perception, and deeply ingrained beliefs about money. Even people with stable incomes and healthy savings accounts can experience financial anxiety or feel as though they’re constantly struggling.
So, why does this happen? And more importantly, how can you shift your mindset to feel more financially secure?
The Psychology Behind Feeling Broke
1. Your Brain Focuses on What’s Leaving, Not What’s Staying
People naturally focus on losses more than gains. If your paycheck comes in and immediately gets eaten up by rent, bills, and other financial obligations, your brain registers it as money disappearing—rather than acknowledging what remains.
This psychological bias, known as loss aversion, makes financial stability feel fragile, even when it isn’t. Instead of recognizing the security that savings or leftover income provides, your focus is drawn to the depletion of your funds.
2. Lifestyle Creep Makes “Enough” Feel Like “Not Enough”
As income increases, spending often rises with it. The things that once felt like luxuries—nicer clothes, better restaurants, subscription services—start to feel normal. While your income may be higher than in the past, your spending habits evolve in tandem, making it feel like you’re still financially stretched.
Because this shift happens gradually, you may not notice it. You still feel as though you’re just getting by, even though your financial situation has objectively improved.
3. Social Comparison Skews Perception
Thanks to social media, we are constantly exposed to curated versions of other people’s financial lives. Friends posting about luxury vacations, new cars, or home renovations can make your own financial situation feel inadequate—even if you are objectively secure.
When you compare yourself to people with higher incomes or different financial priorities, it can create a distorted sense of financial reality, making it seem like you’re falling behind.
4. Financial Anxiety Overrides Logic
Even with a stable income, financial anxiety can create a persistent sense of insecurity. This anxiety may stem from:
Growing up in a household where money was a source of stress.
Experiencing past financial struggles that left an emotional imprint.
Fear of unexpected expenses, even if you have an emergency fund.
Financial anxiety can make you feel broke even when your actual financial situation is stable, simply because your brain is trained to expect scarcity.
5. A Lack of a Clear Financial Plan Creates Uncertainty
When you don’t have a structured plan for managing your finances, money can feel like it’s slipping through your fingers—even if you’re not overspending. Without clear budgeting or goal-setting, you might feel like your money is disappearing, simply because you’re not tracking where it’s going.
Without a financial plan, you may also lack a sense of financial progress. Saving money with no defined goal can feel unsatisfying, leading to a feeling of stagnation rather than security.
How to Stop Feeling Broke (Even When You’re Not)
1. Shift Your Focus to What You Have, Not Just What You Spend
Instead of only tracking expenses, regularly review your savings, investments, and financial growth. A simple way to do this is by checking your net worth—the total value of your assets minus debts. Seeing that number increase over time reinforces the reality that you are building financial stability.
You can also practice financial gratitude by acknowledging the ways your money is working for you—whether that’s covering essentials, allowing for small luxuries, or providing security for the future.
2. Differentiate Between Wants and Needs (and Adjust as Needed)
If you feel constantly stretched financially, assess whether lifestyle inflation is playing a role. Are certain expenses truly necessary, or have they simply become habits?
Rather than making drastic budget cuts, focus on realigning spending with priorities. If certain purchases don’t add genuine value to your life, redirecting that money toward savings or meaningful experiences can create a greater sense of financial well-being.
3. Set Tangible Financial Goals
One of the biggest causes of financial frustration is the feeling that you’re not making progress. To counter this, set clear financial goals—whether it’s building an emergency fund, saving for a home, or increasing retirement contributions.
Break big goals into smaller milestones so you can see progress more frequently. Instead of saying, “I need £10,000 in savings,” start with a smaller, achievable step, like saving £500 per month. Each small win reinforces a sense of control and financial stability.
4. Reduce Social Comparison by Defining Your Own Version of Success
The easiest way to feel broke is to compare your spending power to someone who earns significantly more. Instead of measuring your financial success against others, define what financial security means for you.
This might include:
Being debt-free.
Having a savings buffer for unexpected expenses.
Having enough discretionary income to enjoy hobbies and experiences.
When your financial goals are based on your own values, rather than external comparisons, financial satisfaction increases.
5. Automate Financial Stability
If managing money feels overwhelming, automating key financial tasks can reduce stress and create a sense of control. Set up:
Automatic savings contributions so you consistently build wealth.
Bill autopay to avoid late fees and financial anxiety.
Investment contributions that grow without requiring active effort.
By making financial stability effortless, you remove uncertainty and reinforce the habit of steady financial growth.
Simply Put
Feeling broke isn’t always about how much money you have—it’s about how you perceive and interact with your finances. When your brain fixates on expenses, comparisons, or uncertainty, it creates a false sense of financial insecurity.
By shifting your focus to what you have, setting intentional financial goals, and defining success on your own terms, you can break free from the illusion of financial struggle—and start feeling genuinely secure in your finances.
