How do you define "Broke" (money wise)

I define broke as paying all my monthly bills and having a double digit account when all is said and done. Very few true emergencies can be covered with so little money readily available.  There are people living in the defined sense of the word poor/destitute/poverty who have all their bills paid and needs met. So I think "poor" is directly related to how much money you have, while "broke" is a highly variable personal state of mind.

If you aren't able to pay your bills with the money you brought in? Well lordy, you've got bigger problems then what to call it ('screwed' comes to mind haha) and need a major budget overhaul asap. In this country there really is no reason to not be in the clear each month.

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Originally Posted by 2bearsmom 

The words "broke" or "poor" are relative in terms of personal experience, so how would you define it?
For example- I call it broke when I only have $10 left and the payday is still a few days away! A relative calls it broke when she only has $1,000 in her savings.

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Originally Posted by Karen1985 

I define broke as paying all my monthly bills and having a double digit account when all is said and done. Very few true emergencies can be covered with so little money readily available.  There are people living in the defined sense of the word poor/destitute/poverty who have all their bills paid and needs met. So I think "poor" is directly related to how much money you have, while "broke" is a highly variable personal state of mind.

 

If you aren't able to pay your bills with the money you brought in? Well lordy, you've got bigger problems then what to call it ('screwed' comes to mind haha) and need a major budget overhaul asap. In this country there really is no reason to not be in the clear each month.

I think this would be the way I would define it also,  its a combo of both.  I cash my paycheck and keep the cash.  I put so much aside then put the rest in my purse and when thats gone, 'I'm broke!'.    But its also not having enough to pay my bills either, and not having that safely net in the savings to get by, or trying NOT to fall into that safety net.

I would say "broke" is having no money to spend. Whether or not that's because you have savings you don't touch is up to you.

I say all the time that we are broke. We are not poor. DH has a very nice job and makes decent money. But we have bills that need to be paid and not enough in savings. We are broke but only by choice. Would I love that $100 pair of jeans? Of course! I love a really good pair of jeans. BUT I have better things to spend that $100 on so a $15 pair from wherever I can get them is what I live with.

Broke is a state of mind. Poor is not being able to live on what you make or barely making it. I have been poor. I can remember times when I had all of $35 to spend on groceries for 2 weeks and small mouth to feed and choosing to not eat that day so DS could. I have also been wealthy, could spend money as I chose and never once had to worry about bills or groceries or vacations or any other luxury I wanted. Now, we are comfortable. I like comfortable best, to be honest.
 

Quote:

Originally Posted by 2bearsmom 

The words "broke" or "poor" are relative in terms of personal experience, so how would you define it?
For example- I call it broke when I only have $10 left (after the bills are paid) and the payday is still a few days away! A relative calls it broke when she only has $1,000 in her savings.

 I think this will be different for everyone. It also depends on what kind of 'cushion' you are use to having. I don't think I have a set dollar amount on what I would consider us broke, I think it would depend on the situation. I say we are broke all the time, I think I use it as an excuse to not spend money we don't need to spend!

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Originally Posted by melsb 

Being broke is when I am not happy with our finances. Being poor is when I cannot afford food or shelter for my family.

yes, this is me.  

I describe the first couple years of our marriage as being "broke."  We didn't have much in savings (maybe $2000?), had $500 in credit card debt from the wedding, and dh had student loans.  Our net worth was definitely in the red.  We made enough to cover our bills, but that was about it.  We had no money for luxuries and clipped coupons/shopped sales to stretch our food bill.  Our "date" nights consisted of going to Barnes & Noble to read (we didn't even buy coffee).  

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Originally Posted by melsb 

Being broke is when I am not happy with our finances. Being poor is when I cannot afford food or shelter for my family.

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Originally Posted by worm5996 

I say all the time that we are broke. We are not poor. DH has a very nice job and makes decent money. But we have bills that need to be paid and not enough in savings. We are broke but only by choice. Would I love that $100 pair of jeans? Of course! I love a really good pair of jeans. BUT I have better things to spend that $100 on so a $15 pair from wherever I can get them is what I live with.

 

Broke is a state of mind. Poor is not being able to live on what you make or barely making it. I have been poor. I can remember times when I had all of $35 to spend on groceries for 2 weeks and small mouth to feed and choosing to not eat that day so DS could. I have also been wealthy, could spend money as I chose and never once had to worry about bills or groceries or vacations or any other luxury I wanted. Now, we are comfortable. I like comfortable best, to be honest.
 

I agree with both of these.  Right now I feel we are broke despite the fact that we have a good amount of money in our retirement fund.   I am feeling the pressure of not being able to pay bills (and tuition) and it will be this way until either Dh finds a better job or in 18 months when our house is paid.   Poor is a different thing altogether.