In the United States, the income gap between the rich and everyone else has been growing markedly, by every major statistical measure, for more than 30 years. According to the UC Berkeley economist Emmanuel Saez, the disparities between rich and poor are so pronounced that America’s top 10 percent now average more than nine times as much income as the bottom 90 percent.
Numbers are one thing, but when you put it in a particular perspective, it sheds a whole different light on the problem. So when one Redditor posted the question “In what way is it expensive to be poor?” on Ask Reddit, it was destined to hit close to the bone for many.
And when it feels like this may be a tricky question that’s deeply counterintuitive, in reality, it does make a whole lot of sense. Like, paying a times-ten fine for not having a parking ticket because you just can’t afford one. Let’s see what other fellow Americans had to share on the subject matter, and it’s more illuminating than you’d think.
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The quality of stuff you're able to buy. For example someone struggling for cash will may pair of shoes for £5 that last for a short period of time and need to be replaced every two months. And someone who is more well off can afford to buy a pair of shoes for £40 which last about two years. Therefore at the end of the two year period the poorer person has spent around £120
Mental health. Or more specifically stress. You will always have stress about future, always making decisions based on your poverty so that it won't affect your situation in bad way.
Biggest one that I always think of for all my fellow Americans is medical care. If you’re poor you put off medical care as long as possible, and it’s extremely expensive by the time it’s serious enough to address.
I saw this UTube once. A kid about 14 hrs had fall off his skateboard but the skateboard had swung back on him , hitting him in the privates literally cutting him from bottom to top . Poor kid was screaming in pain , and someone shouted “Quick call an ambulance “ as blood was all over him .... Through his screams he shouted back “No my mum will kill me don’t call an ambulance “ Wow that really hit me, as if that were my son , the first thing I’d want him to do is to take care and call for help. But this kid knew better and had it drummed into him to never call for help. America needs to do better , much bloody better .
The idea that it’s expensive to be poor may sound counterintuitive. But life is pricey in itself, no doubt. And if you break down the average American’s monthly expenditure, most of it goes towards housing, transportation, healthcare, childcare, and food and clothing.
In numerous ways, the system benefits individuals more the bigger their bank account is. According to Mallory Sanborn, a senior associate at Access Ventures, the concept of the overdraft fee is one of the examples.
“While many banks offer overdraft protection and market it as as a service, it can result in the accumulation of fines that make it more difficult to maintain a bank account. If you have insufficient funds in a linked savings account to cover the overdraft, this 'service' can cause more harm than good. Overdrafting by $5 results in a $35 overdraft fee.”
Being stuck with higher interest rates because you don't have enough credit to get low rates.
I know people need credit for various reasons, but stepping away from the buy on credit consumerist mind set would benefit many. The buy now, pay later is a terrible deal for things like house appliances, cars, holidays, clothes etc.
"The poor pay interest, and the rich collect it."
This may draw some flak. I grew up poor with some really old fashioned folks that really look down on owing anything. In that sense, frugality was drilled into me. But I am relatively debt-free besides mortgages. Any extra cash goes into investments since the interest from the mortgages are lower than my returns from the investments. It took 4 decades to start from dirt poor to relatively comfortable. I would like to say it is hard work and great insight but it isn't. It's plain old fashioned frugality for me.
You have to buy a cheap, unreliable car, that will inevitably cost you more in repairs, poor fuel economy, higher insurance etc.
Sadly, the majority of the profit banks make through these fees comes from the accounts of the poorest of the banking population in the US. The numbers speak for themselves—Americans paid a staggering $15 billion of overdraft fees in 2016 alone.
The payday loan is also something that many Americans find themselves grasping onto as a last resort when their financial situation is particularly difficult. When you have little or no savings and your car breaks down, which is the only way for you to get to your job, a payday loan becomes the only option.
But according to The Economist, in 2013, the average interest rate on a payday loan was 322% compared to the average credit card interest rate of 15%. This is cold evidence of how the system that feeds on the poorest of society is broken.
You can't afford to buy a place and essentially throw the money away into rent instead of paying off a house and being able to sell it after.
The horrible thing about this is that the rest is usually the same amount you'd be paying for your mortgage, but you are denied because you are poor...basically
Can't save for a deposit coz we have essentials to pay for including rent. And as Sum Guy says, quite often the rent you pay is about the same as a mortgage. We will never own a home but I have decided that I am okay with that coz then we don't have to worry about paying council rates, any repairs and also when the kids move out we can travel around Australia without the hassle of what to do with the house.
Once a renter, always a renter .... My parents have been renting for over 40 years. They have ALWAYS dreamt of owning a house, but it just has never happened. The amount they need for a deposit increases just a little bit faster than the rate at which they can save up. And now their children are living the same story.
Buying a house isn't the panacea that some thing it is. A house *can* be a good investment and a stead place to live. But it has drawbacks. A house has associated expenses, like I pay $1500/year for insurance that would be $200/year if I was a renter, property taxes can cost thousands (and in most places, taxes go up every year as home values appreciate), normal upkeep can be expensive, and there can be unexpected expenses (my parents paid nearly $10K for a collapsed sewer lateral). While a house *can* be a good investment, that's not always the case, home prices can go down. And owning a house makes relocation more difficult, you have to sell (or rent) the house.... if you can, if you're moving due to a regional or national economic downturn, you may not be able to sell or rent your house. If you have limited economic means, renting could be the better deal even if you're paying more in rent than you would in mortgage, since the mortgage doesn't reflect all costs of home ownership.
Ok, so storytime. First time homebuyers can qualify for special loans in the US, and also there are agencies like the USDA who will back a loan if the property meets certain conditions. How do I know? I bought a house by myself making 20k a year before tax 8 years ago. I paid no cash down except for the inspection. If you are interested in getting a house, then start talking to banks before you start looking. Even if they turn you down, at least you know what to aim for.
In the US, there are also a lot of non profits who will go over your finances for free, help determine if there is any way you can buy, and help you figure out the best path for you, without a vested interest in selling anything to you. I worked with one and it was really helpful. They also know about all the little programs in your state that might give a boost. For example: Arizona has a grant program for first time home buyers. I got 5% of my down payment as a grant (so, didn't have to pay it back).
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If you are disabled you are stuck where you are. Even if you can find somewhere to rent privately you need to pay deposit plus a month in advance and then (obviously) a month later your next payment. It takes two months for Housing Benefit to kick in, they won't pay in advance and they won't pay deposit. This ensures landlords can block you despite this having been made illegal last year. Thanks Westminster!!
Unfortunately Banks and Real Estate Owners have realized that it's more profitable to rent than to sell property. That way they get consistent revenue over a longer period of time, and they get to keep the property as an asset on their books.
RENTERS: PLEASE, PLEASE, PLEASE talk with a mortgage broker (NOT YOUR BANK!) about buying! I wasted years of rent thinking I needed to pay x% down. You will need to pay mortgage insurance, which sucks, but if you have a wife or kids, I guarantee you that you can save money getting a mortgage. If you have credit-card debt, find a non-profit credit managment company, refinance your debt, and maybe you have to wait five years. BUT FOR GOD SAKE, TALK TO A LENDER!!!
In some cases its better to rent. If an appliance goes out, you don't have to pay out of your pocket to fix or replace it. Now bad landlords are another story.
But what do you do when you get old, your income dwindles and you are still having to pay rent?
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Problem is, most poor people can't get the loans to buy a house because they don't make enough.
For what it's worth, houses don't seem to appreciate very fast (mine has less than doubled in 20 years, so it's a small annual increase in value). Plus there's taxes. Plus you pay any association fees, insurance, maintenance, replace the roof, seal the drive and so forth. And buying and selling takes a decent bit of work, and you have your realtor percentages coming and going. As an investment, a house sucks, though I much prefer living in one vs. an apartment or condo.
The average rent for a 3 bedroom house in the suburbs is about $380 per week. To buy a first home on a plan, $249 per week. With Government grants to cover the cost of Taxes and rates. But you have to prove you Earn enough money and have saved enough money to be able to afford these things.
The problem is when you finally do everything you should, get the house, and find out that you're paying less than rent, but the cost to fix the surprises you find is more than you would've paid in rent and you have to find ways to make it work until you can afford it....and God knows when that's gonna be...
I actually do not agree with this one. I've been a renter all my life and not for a moment I regret not being an owner. It is not money "thrown away" - it is money invested in my mental health, because I rent a nice apartment with an outdoor pool in a good neighborhood, so my kid goes to good schools, and on top of that I get all my appliances for free, my house repairs for free etc. etc. I would never able to buy a house like this in this neighborhood. It all depends on a mindset and one's goals. Nothing's inherently wrong with renting. What's wrong is spending more than 50% of your salary on living accommodations.
I mean it doesn’t. It depends where you live really.
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My mortgage is around $900 a month before the escrow for taxes and insurance. I am paying into something that appreciates in value. If you rent, often more than a mortgage, you are paying off someone else's mortgage
What’s crazy is when I see so called experts trying to convince people that renting is smarter than buying. I’m sure if you dig you’ll find those people are landlord
I’m a realtor and I think renting is smarter than buying. If people want to pay me to find them a house to blow all their money on and put them in debt for 40 years, fine. I’m an expert in this and I agree with the other experts. Buying a house isn’t the best decision most of the time.
Load More Replies... This may be unpopular but it is always better to buy than rent. Sure, it is more expensive in the short term with the downpayment, title transfers, banks, utilities and renovations. But in the long run, you are setting up your own retirement. It is not easy first time around as you juggle work with banks, lawyers and contractors to set it up. But if you break out of this comfort zone, I assure you the world looks different now that you have a little spot in the world to call your own.
If you're ever desperate enough to take out a title/payday loan you'll discover you just stepped in financial quicksand.
Payday loan lender should just be lined up and shot! The rates of interest they charge is pure GREED, and that much greed is a deadly sin.
I saw a lady coming out of a laundromat, loading her baskets of clothes into a taxi (there is zero other public transport where I saw this happen and only a few taxis).
Not being able to put enough money together at one time to buy a car or a washing machine (she probably rented so this maybe wasn't even an option) was costing her a fortune. Just being nickeled and dimed to death.
I don't doubt that woman might have been poor, but appearances can be deceiving. I am working/middle class and we do have our own laundry machine, although we're renting (which is pretty normal here in Korea anyway), but an appliance can betray you when you need it the most, so what do you do? Well, use a public laundromat first, then call your appliance service once you have time. OR Korean winters can be so freesing, laundry at home becomes forbidden due to the freezing of water pipes, causing property damage to the neighbours. In this case, we use the public laundromat as well.
Not MONEY expensive, but TIME expensive. Everything takes longer, and you always have to wait. The bus, the laundromat, the store, the line for Money Orders or check cashing...
Before they installed the self-check registers, the Wal-Mart near my work was guaranteed to have a 10-minute wait in line, no matter when you went. Once, there were 42 people in each of the only 2 lines open, at 7P.M. on a Friday. I thought, "They can only get away with this because these people have no other choice."
There's no way the store in the nice neighborhood up the road would ever allow that, their customers would have a fit.
Also, if you're rich you can pay other people to take care of time intensive daily tasks so you can spend your time on things like growing your business or making more money.
In every manner.
If you want healthy food, that costs. But eating cheap food, while sustaining, will inevitably lead to poorer health.
Bad health will cost you.
If you want to not be stressed-and stress is huge when it comes to health-then that means not having to worry is kind of an integral part of poverty.
Stress means less awesome interpersonal relationships, means less sleep, means overwork to try to make ends meet.
Good interpersonal relationships, getting enough sleep, and not working yourself to exhaustion are things that help you stay alive.
Mentally, you now have a running total of how much everything in your life costs. I guarantee you that every poor person knows exactly, precisely, how much milk costs or gasoline, or a bus pass, or the subscription to Netflix that brings them just a little joy and if they can afford it or not. There are no coins in their couches, $5 to discover in an old coat; they need that money and they know where it is.
And if not, now they have to spend time (another expense!) dealing with debt collectors, or people at utility agencies or banks or government offices, trying to negotiate and navigate systems that may or may not be willing to help them (regardless of that system's original intent).
Poverty is merely the accumulation of expenses that one cannot pay and once you are poor, there is a system in place to ensure that you never, ever run out of those expenses.
Rent is more than a mortgage for my apartment would be, but I can't afford the down payment.
I was looking online for house a the other day because my daughter and her boyfriend are looking to buy. If you have great credit like they do, mortgages on some really nice houses with several acres were about $800. But to rent that same house was $2100. There were a few average houses for $450 mortgage, but rent was about $1400. I regret screwing my credit up when I first moved out 24 years ago st 18.
There are late fees for everything. Overdraft fees at the bank. Sh*tty jobs usually don't have good healthcare plans. If you're poor, you need credit cards just to survive, but interest rates are higher for those with low credit scores (see late fees above). Sh*tty cars are always breaking down, and that's expensive...
Now they disguise late fees as "prompt payment discounts"....it's the same thing.
Time is also expensive. I use to spend 4 hours a day on a bus just to get to work. If my manager let us out 15 minutes late, I'd have to wait an hour downtown at night because I JUST missed the bus. The bus came evert hour after a certain time.
Therapy is $400 PER SESSION even with the insurance from my job. My job doesn’t pay enough to live on my own. My spouse and I are slowly falling out of love and I’ll end up homeless and dead either way (working non stop and can’t afford living still or spouse passes and still end up homeless and dying). I’m on the autism spectrum and getting further insight costs more than what I can afford after my bills are paid. When everything is paid, I have $20 left. There’s no ladder for me to climb. I try my best to stay upbeat, because in the past I’ve already attempted suicide 3 times. That’s won’t help. But yea, poor sucks because your whole life is more expensive than it feels it’s worth many times. But somehow it’s still beautiful in tiny ways. Death won’t take me that easily; that f**ker has to fight to get my soul after the abyss of madness I’ve seen on Earth... and survived.
The justice system. If you can’t pay a fine, the state will make things more expensive by adding fees on top of fees on top of fees, then they will incarcerate you for not paying the inflated fees. Then you have to pay the parole officer who is keeping an eye on you while you care unable to get a job that pays enough to pay him.
You also cannot afford to sue people that did ilegal things. When I was in germany I worked for a university. My contrat was part time for 600 euros a month (less than half the minimum salary) but they made me work 50-75h a week 7days a week (our 'weekend' was to process the data). I informed the university and they say "we are sad that you dont like the job". I know that if I sued them I would have won because its super illegal. But I didnt have the savings to pay a lawyer and a translator and pay rent for the many months that it would last.
Can't afford to buy bulk at Costco, so end up spending more and getting less in the long run...
Being unable to pay for education is the most expensive way of staying poor. And don’t come with scholarship and that stuff, it is expensive af and even more if you are like me from a poor third world country
Low paying jobs can also be physically harmful ie factory work, and you can be treated like garbage because it's cheaper to pay out the occasional law suit and medical expenses rather than resign the factory and make it less efficient to be safer.
There is the phrase, "buy nice or buy twice." It basically means that you should buy the nicer product because you'll need to replace it less often.
For those people who can't "buy nice" they are forced to buy an inferior product multiple times.
An example is work boots. A $100 pair of boots may last 5 years. A $20 pair of boots may last 6 months. If you can't afford $100 boots then by the time 5 years is up, you would have already spent $200 on cheap boots.
Geez, would be great if my hubby's work Boots lasted 5 years. We are lucky if they last a year and they cost about $120-$150.
In certain parts of British Columbia, you have to pay a fine if you're caught panhandling. Homeless people literally have to pay money for asking for money.
Renting to own anything is really bad. You pay 4X the value of whatever it is you're renting to own. And if you miss a payment they repossess it and someone else might start at the beginning of attempting to pay for it again. Not only that you very well might be paying 4X the new value for a used item. And only low quality items are sold rent to own. Ashley furniture, sh*tty used cars, the cheapest big screen tvs available at wholesale. Houses might be better, but rent a center, and JD Byrider are worse than loan sharks.
I once had to pay money so I could set up a payment plan because I had no money. Because I was to broke I had a bunch of late fees so a 100 dollar ticket ended up being around 1500 when all was said and done
My car has a leaky seal on the transmission. It'd be about $250 to replace the seal and flush the transmission. I don't have $250, so I keep topping up the fluid and keep driving it because I'll never get $250 if I don't get to work. But, in time, that's going to destroy the transmission, which will be about $1200 to replace.
When bank fees are waived if you keep more than $X amount in your account, but they start charging for the account when the amount drops under the minimum.
... and that makes the amount fall more below the minimum, making it even harder to stay above the minimum the next month.
Not being able to afford preventative care can get expensive fast.
Be it cars, homes, bodies, or relationships.
This has probably been said already, but good cooking.
For us, middle class now, it's easy to assemble a meal from what is in the pantry and freezer supplemented by what's in our garden or in the stores within three blocks of my house.
It feels thrifty, healthy, sensible.
But to get to this point took a lot of investment. We have pots and pans, spices, flour, oils, vinegars, bags and cans of staples, grills, steamer, measuring devices galore. We have the knowledge of cooking that comes from being able to afford to learn what we liked by going to restaurants, and having the spare time to watch cooking shows, and the energy to cook everyday because we don't have two jobs each with long commutes.
And if you don't have $500 to put together a basic kitchen, or secure private cooking space so that your investment won't immediately be soiled or stolen, you're likely going to be eating a lot of fast food. And that isn't the most nutritious foundation for the next day.
If you’re poor you already have no or very little money to invest in yourself, so you have to take on debt to do so. If you want to get technical certifications or degrees. Sometimes there’s financial assistance but a lot of the time taking on loans is necessary.
WSJ on youtube did an article on the cost of education in the US for public colleges. It’s a viscous circle.
I always get this realization when I am at airports, especially in the USA.
If you want to purchase good, healthy food you easily have to spend $20+, for example on a salad. At the same time, you get a greasy hamburger and even greasier fries for $10.
Don’t have the money to buy a salad? Well, just buy some unhealthy food and live with the consequences as you gain weight and your health deteriorates.
Meanwhile... if you happen to have access to a Centurion Lounge, you can just grab any good food you like and you are not paying anything at all. Some good meat, a few veggies and a glass of wine for... $0.
Yes, it’s expensive to be poor - especially in the USA.
I went through a lot of the top answers and didn't see anyone talking about getting tickets from police/city fines. Especially because there are so many that aren't really justified
For rich people that sh*t is like a mosquito on a t-rex
Owning a car. If you can't afford the basic maintenance then a catastrophic issue is not a matter of if, but when.
Being poor and having a high metabolism (especially if you’re trying to be healthy) is a horrific combination.
Your health. Poor people with lack of resources are susceptible to diabetes, heart disease, mental illness, poor school etc.
Can't afford to buy good quality..anything..so I end up having to replace stuff more often. Like undies or shoes. A good bra costs a f**king fortune too. I have a bad back and I need a new good mattress but they are just straight up out of reach for me, way more than I could even save for. So I end up with more back pain than I should have, which means more pain killers and doc appts and having to get people to so stuff for me like mow the lawn. I have a dinky little aircon that uses more power than a more expensive model because he's working his ass off trying to take the edge off - If I can even afford to run the f**king thing. Put the cheapest fuel in my car, led to engine problems. Psychiatrists cost a fortune and I just plain can't afford to see one unless my family covers the cost for me.
Go buy food in the hood and compare the prices to the suburbs. Way more
CANT MAKE A $20,000 DOWNPAYMENT?! HERE’S A POOR PERSON OPTION THAT COSTS 600x MORE!!!!!!
Everything is expensive when you're poor. Jokes aside, this is true. I've been poor for most of my life and I'm still not in a great financial situation. And the biggest problem is that you not only don't have a lot of money, but all the prices stay the same, so literally ANYTHING that you buy feels like a fortune.
I walked to the grocerie store do buy some stuff to make a special dinner on my daughter's birthday and I spent about R$100,00 (about 20 dollars I think, Idk), and I swear I'd win an oscar for how I kept my poker face. The second I walked out of the store I bursted out crying. Everyone on the street could see me crying as I walked back home. Seeing my daughter's smile later that day during dinner made me feel a lot better, but those R$100 ($20) REALLY hurt...
And food stamps is a trap. I read where a family had decided the woman would not work because the amount they had in food stamps was more than she would make in a month, but if she did work the food stamps would be lowered way down. So they were better off with her not working. And he could only make so much in a year because they would be kicked off medicaid. So it is a cycle that keeps you poor. If he made a few hundred dollars a year, then they would have to pay thousands in health insurance. And she said why work part time (while raising kids) for $400 a month when they can get $600 in food stamps if she does not work. Not to mention daycare. When I was making minimum wage I got paid about $280 a week minus taxes. Daycare was about $85 a week. $120 for two kids. Seems kinda pointless to work just to pay for daycare so you can work.
Tires! Used tires cost 1/3 price and get about 20% of the life of a new tire. Also you are paying mount and balance every time, plus worry about blow outs. Even a new tire at $80 with a 30K mileage expectancy or a $100 tire at 65k mileage warranty. Over twice the life, little more than 20% in extra charge.
The laundromat! My washer broke and holy sh*t, thats pricey.
Shopping... I get to drive around and go to the cheapest stores. Ironically the 2 chain grocery stores near the projects are the priciest ones.
Also you have to buy more of everything so it will last all month before you can get to the laundry. A month with of socks, underwear, towels,sheets,ect.
I've seen numerous people buy a new car because they can afford a payment but not a $1,200 repair.
I did that too! Repairs on the car were starting to get a bit too much. Luckily got a 0% finance on a much newer used car with a small deposit.
Food desserts, where everything at the single grocery store for miles around is marked WAY the hell up because its shoppers usually pay in food stamps and/or have nowhere else to go.
Laundry. Imagine needing an entire morning/afternoon to load and lug your sh*t to a hot building and feeding machines quarter after quarter after quarter while being tethered to the spot so your stuff won't get stolen.
Cant afford to go to the doctor.
Get sick to the point where i HAVE to go to the doctor.
Would have been cheaper to go when i first got sick.
Banking. It has always blown my mind how predatory banks are on lower income people while all the people with plenty of money get every fee possible waived even though they can easily afford it.
Being unable to buy things in cash means financing multiple purchases at once. So someone could (theoretically) have monthly payments for a school laptop, car, apartment, furniture, large applianve like a fridge, CareCredit balances for unexpected medical needs, and credit cards for past emergencies they're still paying off.
This puts such a squeeze on the smaller income that when the next unexpected expense comes along, like a car repair or AC blowing, it has nowhere to go but on credit making the hole even deeper.
No money to invest in a retirement fund, stock market, etc. With inflation you're losing money, if you have any saved up at all.
I will consider that I'm saving money once I get on the side enough to pay just the rent for 1 year in case something happens, so I don't become homeless. Have a roof over our head it's my only priority, the rest I will think about later.
Smoking Cigarettes.
You're poor, you're depressed guess what cigarettes offer? A small dopamine hit that make you feel better, tobacco also contains small amounts of MAOI's (a type of anti-depressant) yay not only do you get that dopamine you also get some treatment.
The cost? The actual cost of the cigarettes and being addicted to them means you need them all the time, cancer, heart disease etc/they hurt your health so more time off work for some, death for others, if in the US big medical bills.
More poor people smoke than rich people, the poorer you are the more likely you are to smoke so all those cigarette taxes that are meant to dissuade you from smoking is quite literally taxing the poor.
Don't smoke people, I did for 22 years and almost died from it, luckily I'm in Canada with a social healthcare system or I'd be in massive medical debt.
Worse in Australia, a cheap packet of 30 cigarettes will cost you around $50. And it's not easy to give up so a lot of the poor either go without food to pay for their addiction or steal. Fortunately I quit but I know how difficult it is.
Debt. Basically if you're poor you need to borrow some money to either get a house or buy food and after a while the debt keeps getting bigger and bigger
As an example: buying sh*tty shoes every 3 months because it constantly breaks is more costly than a rich person buying ultra-expensive shoes that will last for the rest of his life.
Healthcare. Was poor basically my whole life and now have to pay thousands for surgeries and the health insurance covers almost nothing.
simply having a checking account can get you fee'd into the ground for being in the ground already
that which banks generate from any fees charged on their deposit accounts. The total amount of such fee income created by banks in 2015 was a whopping $34.6B. Shockingly, that amount of fee income averages out to about $107 per American (323.6M people), including every man, woman, and child, account holder or not. That would be about $4.75 per person if calculated for the entire world’s population. Those are steep numbers, and that’s just for one year’s worth of bank fees! - taken from https://www.depositaccounts.com/blog/banks-income-fees.html
Shopping at Aaron's and Rent-a-center. My parents waste so much money paying lower monthly payments when they could just save up to buy furniture upfront, which would cost way less in the long run.
the difference is fixed income. if you only get a set amount of money coming in each month, you have to budget it accordingly, and saving is often not an option at all.
You put off regular service for your car and, eventually, that creates a bigger problem.
You can pay as much in rent as somebody else does for a mortgage payment. But you don’t have anything to show for it in the end.
Driving a beater to and from work.
Yeah, you could be spending more on a car payment. Or you could spend 5-10k (that you don't really have or saved up for a long time to get) to get something not on a dealer lot that runs good.
Or you could buy a 30 year old POS for $500-1k because that's what you've got (and public transportation isn't an option for you) and be replacing $20-$200 parts every couple weeks just to keep the damn thing running. It's even worse if you have a job as a delivery driver.
In every way. You can only afford stuff that breaks, can't afford good health care which will lead to bigger health problems. Stressed about how how you will be able to afford rent/stuff.
Couldn’t afford a car, so my commute to and from work added an extra hour on a bus. That extra hour ate into my day and made it difficult to run basic errands like buying groceries. Ended up paying extra to have them delivered so I could free up some time for myself. I would have to take days off to handle doctors appointments/DMV/anything else which equaled lost wages. I was stuck in a position that required me to go back to school to earn a living wage, but taking night classes and juggling full time work would be nearly impossible without transportation, so I stayed at an underpaid job longer than I had intended until I could save enough to take the financial leap. I’m currently in 60k worth of school debt which equals more than I make annually. I also lived in a high cost of living area, but moving wasn’t feasible due to not having reliable transportation. I paid more rent and for other necessities for having the convenience of being centrally located to a job.
Oh and, preventative health care was not a thing growing up. I have thousands of dollars worth of dental work needed for my teeth that I’ve barely even started on. Those $100 dentist visits that my parents never bothered to schedule now have equaled thousands of dollars worth of root canals, fillings, and crowns.
Been helping out a homeless couple lately. The three best purchases I made for them were raincoats, hunter grade sleeping bags and a smokin joe barbeque. These people survive with very little. Anything helps. If you were poor but came into some good fortune, help those that need a hand up. You'd have wanted someone else to do the same for you in that spot.
The most sickening thing is how businesses bend over backwards to give wealthy customers all sorts of perks and discounts, yet low budget customers are often treated differently and do not get the same benefits. It is disgustingly hipocritical when the wealthy customers do not NEED discounts and preferential rates, and lower income people need all the help they can get. I see if every day and it is so unfair and unethical.
Maybe I misunderstood but seems to me that being poor in Germany /Portugal (countries that I experienced living) it's wayyyyy different then being poor in USA, not only because of health system but at all. It's correct?
The answer to so many of these is knowledge! I wasted years of rent, because I didn't know I could get a 0% down mortgage with mortgage insurance. I was fiscally responsible, and ended up with a lousy credit rating because I didn't establish a credit record. I ended up spending months in fear of jail, and spending $1,000 because I didn't know the local laws about buying used cars. As I've pointed out to others, churches or other non-profits can point you to inexpensive therapy. You can get a free education if you can get reliable access to the internet (which, believe it or not, is still a big "if" even today.) But you need knowledgeable help on all of these matters. And when you don't have money, you don't learn these things,
Puzzled that "no volume discounts" (e.g., paying monthly instead of yearly up front) isnt/wasnt near the top-3 when I looked. Can't afford to stock up on good offers etc.
They didn’t mention all the freebies celebrities get. Everything from clothes to makeup to brand new cars. It’s absolutely disgusting
The world is so very ready for a Universal basic income. That way people can afford all these things and instead of stressing and having poor health they have the space in their heads to volunteer, create music and art, set up groups and clubs and classes, study for a better job etc. it would make the world so much better
yep. unfortunately all that most people in power see is the very short term, where they're just giving money to people. they can't see a year out from now, where those people are thriving and contributing more to society because they aren't being crushed to death by poverty.
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Almost everyone has been poor at some point in their lives. Most weren't aware of it at the time (children, students), but most who are aware in hindsight should acknowledge it and feel some empathy for those who struggle. It doesn't take a huge outlay to do something that makes a tremendous difference in someone else's life. And remember that the phrase "pulling yourself up by your own bootstraps" originated as a joking slur against the impoverished, because it is an impossibility. Haha. When you're tempted to trot it out, remember that. I'd venture to guess that those who give clothing, cash or food to the homeless guy on the corner are much more likely to be working class than wealthy. And a great number of folks are about one or two paychecks away from falling into poverty due to accident, illness, divorce, or job loss. Practice gratitude and charity. The cost is less than you imagine.
I think the top one in this list is not being able to invest. If you have enough disposable income to park in U.S. stocks, you are going to make a lot of money over time. And the more you make, the more you make - it's like a runaway train
Agree although this one is also kind of a lie the rich convince the poor of. Now with apps, anyone can invest and you can sell off when you need to spend your money.
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Supermarkets and gas stations are cheaper on the rich side of town than on the poor side. .
There are people living on Capitol Hill who live this reality every day. Capitol Hill is a neighborhood in DC that is very very very mixed with rich and poor. Real people live there, not just politicians.
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One thing I didn't see was heat/AC. When it's cold, space heaters run your electricity bill up fast and if you have an old AC unit you spend more money on your electricity bill than you would with a new one not to mention it's also expensive to get it fixed but new units are too expensive so you end up paying more in electric bills and repairs, and that is if you have the money for a repair only for the AC to go out a week later.
Some grocery stores even leave areas that they deem 'too high-crime' (as opposed to putting in safety measures). This means that people in those areas have to buy their food from convenience stores, which are hugely expensive, or take find a way to get to the grocery store; bus service in most of the US is appallingly bad.
Please let me see you biographies so I can learn from you.
Load More Replies... Been helping out a homeless couple lately. The three best purchases I made for them were raincoats, hunter grade sleeping bags and a smokin joe barbeque. These people survive with very little. Anything helps. If you were poor but came into some good fortune, help those that need a hand up. You'd have wanted someone else to do the same for you in that spot.
The most sickening thing is how businesses bend over backwards to give wealthy customers all sorts of perks and discounts, yet low budget customers are often treated differently and do not get the same benefits. It is disgustingly hipocritical when the wealthy customers do not NEED discounts and preferential rates, and lower income people need all the help they can get. I see if every day and it is so unfair and unethical.
Maybe I misunderstood but seems to me that being poor in Germany /Portugal (countries that I experienced living) it's wayyyyy different then being poor in USA, not only because of health system but at all. It's correct?
The answer to so many of these is knowledge! I wasted years of rent, because I didn't know I could get a 0% down mortgage with mortgage insurance. I was fiscally responsible, and ended up with a lousy credit rating because I didn't establish a credit record. I ended up spending months in fear of jail, and spending $1,000 because I didn't know the local laws about buying used cars. As I've pointed out to others, churches or other non-profits can point you to inexpensive therapy. You can get a free education if you can get reliable access to the internet (which, believe it or not, is still a big "if" even today.) But you need knowledgeable help on all of these matters. And when you don't have money, you don't learn these things,
Puzzled that "no volume discounts" (e.g., paying monthly instead of yearly up front) isnt/wasnt near the top-3 when I looked. Can't afford to stock up on good offers etc.
They didn’t mention all the freebies celebrities get. Everything from clothes to makeup to brand new cars. It’s absolutely disgusting
The world is so very ready for a Universal basic income. That way people can afford all these things and instead of stressing and having poor health they have the space in their heads to volunteer, create music and art, set up groups and clubs and classes, study for a better job etc. it would make the world so much better
yep. unfortunately all that most people in power see is the very short term, where they're just giving money to people. they can't see a year out from now, where those people are thriving and contributing more to society because they aren't being crushed to death by poverty.
Load More Replies... Almost everyone has been poor at some point in their lives. Most weren't aware of it at the time (children, students), but most who are aware in hindsight should acknowledge it and feel some empathy for those who struggle. It doesn't take a huge outlay to do something that makes a tremendous difference in someone else's life. And remember that the phrase "pulling yourself up by your own bootstraps" originated as a joking slur against the impoverished, because it is an impossibility. Haha. When you're tempted to trot it out, remember that. I'd venture to guess that those who give clothing, cash or food to the homeless guy on the corner are much more likely to be working class than wealthy. And a great number of folks are about one or two paychecks away from falling into poverty due to accident, illness, divorce, or job loss. Practice gratitude and charity. The cost is less than you imagine.
I think the top one in this list is not being able to invest. If you have enough disposable income to park in U.S. stocks, you are going to make a lot of money over time. And the more you make, the more you make - it's like a runaway train
Agree although this one is also kind of a lie the rich convince the poor of. Now with apps, anyone can invest and you can sell off when you need to spend your money.
Load More Replies... Supermarkets and gas stations are cheaper on the rich side of town than on the poor side. .
There are people living on Capitol Hill who live this reality every day. Capitol Hill is a neighborhood in DC that is very very very mixed with rich and poor. Real people live there, not just politicians.
Load More Replies... One thing I didn't see was heat/AC. When it's cold, space heaters run your electricity bill up fast and if you have an old AC unit you spend more money on your electricity bill than you would with a new one not to mention it's also expensive to get it fixed but new units are too expensive so you end up paying more in electric bills and repairs, and that is if you have the money for a repair only for the AC to go out a week later.
Some grocery stores even leave areas that they deem 'too high-crime' (as opposed to putting in safety measures). This means that people in those areas have to buy their food from convenience stores, which are hugely expensive, or take find a way to get to the grocery store; bus service in most of the US is appallingly bad.
Please let me see you biographies so I can learn from you.
Load More Replies...