The Carr Report: 10 types of broke—and how to break free from every one of them

November 18, 2025

Financial coach Damon Carr argues that being broke isn't simply about lacking money, but rather encompasses ten distinct financial situations that require different solutions. These range from overspending despite adequate income and earning too little to cover basic needs, to emotional spending patterns and generational cycles of poor money management. Each type of "broke" stems from losing control over different aspects of personal finance, whether that's controlling spending habits, income generation, or beliefs about money.

Who is affected

People who overspend relative to their income ("lifestyle trap" individuals)
Workers earning wages insufficient to meet basic needs (the underpaid)
Individuals with scarcity mindsets developed from their upbringing
People experiencing unexpected life crises (job loss, divorce, medical emergencies)
Students, parents paying for education, or entrepreneurs making strategic investments
Those maintaining expensive appearances while carrying debt ("fake rich" individuals)
Stable but stagnant earners with no savings or investments
High-income earners with low net worth
Emotional spenders who use purchases to cope with feelings
People trapped in generational cycles of poor money management
Their families, children, and relationships affected by financial stress

What action is being taken

No explicit organizational or policy actions are currently described as ongoing in the article. The article prescribes recommended actions for individuals to take but does not describe actions currently being implemented.

Why it matters

Financial struggle affects not just bank accounts but spills over into physical health, relationships, and sleep quality, creating widespread life disruption. Understanding that "broke" has multiple root causes—from spending habits to wages to learned behaviors—is significant because it reveals that different financial problems require different solutions rather than one-size-fits-all advice. The distinction matters because someone cannot budget their way out of under-earning, just as a high earner cannot solve their problems simply by making more money if they lack management skills. Breaking these cycles is particularly important for generational broke, as poor money management gets passed down to children, perpetuating poverty across families. Ultimately, regaining financial control impacts overall life quality and creates the potential to build legacies rather than merely survive paycheck to paycheck.

What's next

No explicit next steps stated in the article

Read full article from source: Michigan Chronicle