Beating Broke

These Are The Top 7 Reasons You Are Still Broke

February 18, 2025 By Teri Monroe Leave a Comment

Why you can't change your financial situation and stop being poor. — Image Source: Pexels

Do you feel like you will never get a handle on your finances? You don’t have to settle for being poor. By shifting your habits and mindsets you can improve your financial picture. Here are the top 7 reasons why you are still broke.

1. You Have a Scarcity Mindset

If you believe that money is limited and you’ll never have enough, you probably will be stuck being poor. How you view money has a lot to do with how you’ll behave and the money decisions you’ll make. You’ll continue to worry about bills, stress about the future, and live paycheck to paycheck. Instead, work on shifting your money mindset to that of abundance. With this mindset, you believe that you have enough money and you’ll always have what you need.

2. You Haven’t Learned from Your Financial Mistakes

Do you work on your financial health and then fall back into old patterns? Making smart money decisions isn’t just for a season. When you make a mistake, give yourself grace but learn from the experience. Adopting better money habits throughout your lifetime will stop you from being poor and build your wealth over time.

3. You Believe You’re Bad with Money

If you constantly tell yourself that you’re bad with money, you’re setting yourself up for a self-fulfilling prophecy. Instead of holding yourself accountable, saying that you’re bad with money makes excuses for poor choices. Researchers have found that our internal money scripts play a large role in our income and net worth. Until we flip the script, we may not see a way out of our money problems.

4. You Don’t Track Your Money

If you don’t know how much money is coming in and going out, you’re setting yourself up for failure. Paying attention to your money is crucial to bettering your situation. Then, you create a budget, get out of debt, build your wealth, and make your money work for you.

5. You Live Beyond Your Means

No matter how much money you make, living beyond your means will always leave you feeling broke. Living beyond your means can look like carrying massive credit card debt, taking out a bigger mortgage than you can realistically afford, or overspending on luxuries. Additionally, Lifestyle creep is something you need to be aware of, even if you bring in additional income. Until you get a handle on your spending patterns, you’ll continue to feel broke.

6. You Haven’t Worked on Your Financial Literacy

It’s ok to admit that you need to work on your financial literacy. Many of us aren’t taught about basic money principles that are essential to money management. So, read financial literacy books, listen to podcasts, or take a course to increase your knowledge.

7. You Don’t Know Where to Start

If you constantly are overwhelmed by your financial situation, it’s probably difficult to take action to improve it. While change doesn’t happen overnight, small positive steps forward will pay off over time. It’s important to remain diligent and consistent when you’re trying to improve your finances. Try not to lose motivation and keep pushing forward.

How are you working on your financial situation? Let us know in the comments.

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5 Surprising Assets You Didn’t Know Can’t Be Depreciated

February 12, 2025 By Teri Monroe Leave a Comment

What assets cannot be depreciated — Image Source: 123rf.com

If you own a business, depreciation is important to help manage expenses, reduce taxable income, and account for the true value of assets over time. While there are different ways to calculate depreciation, such as straight-line or declining balance. Straight-line depreciation is the easiest method. It spreads the cost evenly over the asset’s useful life. Declining balance depreciation is an accelerated method of depreciation that depreciates an asset faster than in earlier years. If an asset loses value quickly, like tech equipment, this method is the most useful.

So, what assets can and can’t be depreciated? Many of us are familiar with assets that can be depreciated like commercial buildings and cars. But what assets cannot be depreciated? Here are 5 surprising assets that cannot be depreciated.

1. Patents and Copyrights

What assets cannot be depreciated self-created patents — Image Source: Pexels

If you acquire a patent or copyright, it can be depreciated. If the patent or copyright is self-created, however, it can’t be depreciated. This is an important distinction that you should know about. The same is true for brand names and trademarks. If self-created, they aren’t depreciable, but if purchased they may be amortized.

2. Inventory

Inventory doesn’t get depreciated, but instead gets expensed when sold. The IRS considers inventory a short-term asset that is meant to be sold in less than a year. So it doesn’t have a long enough lifespan to be depreciated. Say your inventory is damaged or doesn’t move quickly. You would then account for it in an inventory write-down to account for its current market value.

3. Land

While land itself cannot be depreciated, many land improvements can be. With every property, there are usually improvements needed over time. If you’ve invested money into landscaping, land improvements, or outdoor infrastructure, these assets may be eligible for depreciation. Improvements like irrigation systems, parking lot resurfacing, or sidewalk repairs can be depreciated. Things like trees, grass, and shrubs aren’t depreciable unless part of a qualified land improvement.

4. Demolition Costs

While you can depreciate improvements, demolition costs can’t be depreciated. If you tear down a building, the cost is added to the land value instead of being depreciated. Demolition costs are usually considered a capital expense that improves the land or changes its use. If demolition is part of a redevelopment project, certain costs may be deductible or amortized. As discussed, since land doesn’t lose usefulness it also can’t be depreciated.

5. Office Assets

While assets like office furniture can be depreciated, things like artwork cannot be depreciated. The same is true with antiques. However, if these assets are used in a business setting and you can prove a limited lifespan there may be some exceptions. Additionally, any assets only used for personal use cannot be depreciated. So things like furniture in your home don’t qualify.

What assets do you depreciate? Were there any assets on this list that cannot be depreciated that surprised you? Let us know your thoughts.

Leaving Florida: 8 Reasons Why People Are Moving Out Of Florida and Going to Texas Instead

February 10, 2025 By Teri Monroe Leave a Comment

Leaving Florida and Moving to Texas — Image Source: Pexels

In 2024, more than 500,000 people left Florida for other states, according to the Florida Chamber of Commerce. This was the largest exodus of residents in the state’s history. Why are so many people leaving Florida? From cost of living concerns to an increase in natural disasters, some are giving up on the Florida dream and relocating. Here are 8 reasons why people are leaving Florida and moving to Texas.

1. Lower Cost of Living

While Florida has no state income tax, the cost of living in recent years has skyrocketed. As a result, many people are leaving Florida. Texas is still below the national average for cost of living, while Florida is now slightly higher. This includes grocery prices, housing, rent, and taxes.

2. Fewer Tourists

Florida is known for its snowbirds in the winter, and its beaches and resorts are a destination for many. Plus, areas like Orlando, home of Disney World, draw many tourists from around the world. While tourism drives Florida’s economy, it can be frustrating for residents when traffic increases and local establishments are flooded with patrons. In Texas, while there is some tourism at popular attractions, it is nowhere near the level of tourism in Florida.

3. Less Natural Disasters

According to the National Center for Environmental Information, from 1980–2024, Florida has had 94 weather and climate disaster events with losses exceeding $1 billion each. While Texas experiences more droughts, Florida has had several severe hurricanes in the last few years, causing costly damage.

4. Lower Insurance Costs

Because of the recent hurricanes, property insurance in Florida has become very expensive. In 2024, the average cost of property insurance in Florida was projected to be around $11,759, which is much higher than the national average. Some insurance companies have revoked coverage for some properties, creating an insurance crisis in the area. In comparison, Texas’ property insurance costs are less than half of Florida’s.

5. More Stable Housing Market

As many people are leaving Florida due to soaring costs, they are finding that it has become difficult to sell a home in Florida. Texas homes may be a better investment in the long term.

6. More Available Land

Since Florida has seen a rise in development, there is less available land. Texas on the other hand has more available land and more diverse landscapes. Most Texans live in a small percentage of incorporated land, with much of the state’s land open and uninhabited.

7. Better Weather

While both states have warm weather, Florida is known for its rainy season in the summer. You can expect at least one shower per day. Texas has a more varied climate and much less humidity than Florida.

8. More Diverse Job Market

While Florida’s economy has grown at a rapid pace, it is still largely driven by tourism. The Texas economy is comprised of various sectors such as agriculture, manufacturing, services, and technology, creating a diverse job landscape. This is very reflective of the diversity that is found throughout Texas.

Are you considering leaving Florida? Where do you plan to move?

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