I used to have a senior colleague who earned thrice as much as I did, but always became broke soon after her salary hit her account.

This lady would then begin to seek financial assistance from all who cared to listen to her story, of how she seemed to have too much financial responsibility shoved down her throat.

When I got tired of her being continually harassed by those she owed, I sat her down one day and practically begged her to explain how she spends her money that puts her perpetually in debt.

After she did, I couldn't help but burst into spasms of laughter because I found the leak.

Like her, most people do not think having knowledge of personal finance is necessary, you probably think only accountants need to bother themselves with numbers.

But the dramatic turn your finances will take simply by making essential financial decisions will marvel you greatly.

According to Investopedia, personal finance is the science of handling money and it entails the financial decisions and activities of a person or group of persons.

Practicing how to earn, save, invest, and spend is what knowledge of personal finance would accord you.

Here are some 5 habits which could help you save money and keep you from being broke.

1. Avoid spending on impulse:

Hey, it isn't everything that calls for your attention that deserves your spending money on. That's why you need to make a budget for your income to avoid spending on impulse. Creating a budget is one thing and sticking to it is another. But if you need to see yourself soar above debt and having some money to save, then spend money only on what you need not on what you want.

2. Put a check on your benevolence:

True, everyone is a friend to someone who loves to spend money but its also true that no one wants to befriend anyone who is broke. Make sure every giving you do is worth it, avoid giving for showmanship.

3. Restricting the amount of money in your wallet:

This is necessary to check to spend on impulse. As you may have observed, whenever you have money in hand, several things will call for your attention. For one, that's when you remember a waiter you need to give extra tips to, etc.

4. Spending less than you earn monthly:

Have a strict budget that involves your spending within your monthly income. If any expense shows up after your budget has been made, carry it over to the next month. That way, you aren't incurring debt or living above your earnings.

5. Always negotiate before purchase:

Some persons think that negotiating for a few cents or a couple of dollars being waved from the price of a product or service is a poor man's mentality but truth is, rich people are very good negotiators.

If you save a couple of dollar bills every day for 30 days, that's 30 dollars minimum and for 12 months it isn't small money.

In all, pay careful attention to those monies you think are too small to make a difference in your life that you spend carelessly for it's capable of making you broke. Every spending should be carefully planned.