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Old 02-21-2013, 09:46 PM
 
Location: SoCal
1,506 posts, read 3,168,004 times
Reputation: 1120

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The way things are going it seems that everyday that's passing I'm getting closer and closer to poverty.

My question here is that how hard is it to escape poverty. Because I could tell you that being in the low end of the spectrum it's hard, you need money to make more money.

And us people at the bottom have little or no money, so were at a very significant disadvantage.

It's not stupidity which has led me and others like me to this level, but luck. We try very hard, much harder then everyone else but we are still stuck.

Some people with little effort they manage to better themselves. After all the hard work of trying all the time an seeing that you haven't even made one bit of progress just nails it.
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Old 02-21-2013, 09:56 PM
 
5,470 posts, read 8,160,530 times
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I didn't live without roommates till i was 28.

I drove $2K junker cars for a year or 2, then sold them for what I had in them (Or a little more) and repeated it.

I used the cheapest phone on the cheapest plan, Shopped at good will...

You get the idea.

The whole time I was squirreling money away. (Not saying I didn't go places, and do things... I just was careful about my expenses)

I didn't grow up dead broke, but I've had my share of free lunches and gov't cheese.

I've just in the last couple years started loosening the reins a bit...

IMHO, it's all about priorities... I valued the freedom from financial independence more than 'flash'
I'm not there yet, but in a couple years I hope to (Still work) but not be dependent on that income for my living expenses.


My Great Grandmother used to say:
When your outgo exceeds your income
Your upkeep will be your downfall.
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Old 02-21-2013, 09:58 PM
 
48,519 posts, read 80,998,062 times
Reputation: 17978
Once you realise that most luck is by hard work and effort ;you might learned the answer. Most start the process early in life by makig chopcie such as workig hard at school studies. Others work manually to make their way ang go from there.My most successful friend never went to college yet thru self employemnt created five businesses at which he normally worked form 6am until 6Pm.He just retired having sold his business completely.I took teh college route and while sucessful never reached his level but I didn't work as hard thru pout adult life ;really.
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Old 02-21-2013, 10:03 PM
 
118 posts, read 172,170 times
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Not impossible but definitely a challenge. The more you have the less someone else has so there is an incentive for the system to keep you poor.

Socialism is effective at equalizing the standard of living, but it too has issues. If you are truly concerned that you are falling into poverty seek public assistance (job placement, rent assistance, food stamps) and when it comes time to vote, vote for socialist candidates and make sure your representatives know that community welfare is important to you.
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Old 02-21-2013, 10:59 PM
 
Location: USA
16,564 posts, read 16,220,686 times
Reputation: 12523
Quote:
Originally Posted by yowps3 View Post
The way things are going it seems that everyday that's passing I'm getting closer and closer to poverty.

My question here is that how hard is it to escape poverty. Because I could tell you that being in the low end of the spectrum it's hard, you need money to make more money.

And us people at the bottom have little or no money, so were at a very significant disadvantage.

It's not stupidity which has led me and others like me to this level, but luck. We try very hard, much harder then everyone else but we are still stuck.

Some people with little effort they manage to better themselves. After all the hard work of trying all the time an seeing that you haven't even made one bit of progress just nails it.
I think the most important thing to do is not view yourself as a victim. That is how people end up on welfare for life. Do you have an education? How old are you?

If you can get a job as a server, it's a relatively easy job to get and you get cash at the end of each day. Another option would be to start out as a bank teller, which is also generally fairly easy to get and if you have an education, you could get promoted to a personal banker within a year.

I hope your luck turns around, hang in there, you can do it!


A well known speaker started off his seminar
by holding up a $20 bill. In the room of 200,
he asked. “Who would like this $20 bill?”

Hands started going up. He said, “I am going
to give this $20 to one of you, but first, let me
do this.”

He proceeded to crumple the 20 dollar note up.
He then asked. “Who still wants it?” Still the
hands were up in the air.

“Well,” he replied, “what if I do this?” He
dropped it on the ground and started to grind it
into the floor with his shoe. He picked it up,
now crumpled and dirty. “Now, who still wants it?”

Still the hands went into the air.

“My friends, you have all learned a very valuable
lesson.A‚A No matter what I did to the money, you
still wanted it because it did not decrease in
value. It was still worth $20. Many times in our
lives, we are dropped, crumpled, and ground into
the dirt by the decisions we make and the
circumstances that come our way. We feel as
though we are worthless; but no matter what
happened or what will happen, you will never lose
your value.

Dirty or clean, crumpled or finely creased, you are
still priceless to those who love you. The worth of
our lives comes, not in what we do or who we know,
but by …WHO WE ARE.

You are special, don’t ever forget it.”
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Old 02-22-2013, 12:16 PM
 
Location: North Idaho
20,999 posts, read 25,737,156 times
Reputation: 39380
If you want to work yourself up the financial scale, first you need to know how money works and how investing works. There are classes to teach you that information and often times it is available for free.

You also have to understand that there are people out there who make their money by convincing gullible people that they can teach them the secrets of success in exchange for lots and lots of money. The "real secret" is only available once you reach the next level, at greater cost. Then the real secret isn't really at that level, you must pay for another level.

If you are gullible, all that happens to you is that someone without ethics is going to take whatever money you have.

It's hard work. Lots of study, lots of seriously paying attention. Then, this is not a contradiction, you will not work your way into wealth. Figure out how to get your money to work for you. That is where wealth comes from.
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Old 02-22-2013, 12:27 PM
 
3,083 posts, read 4,477,432 times
Reputation: 3524
The key is really just living well below your means. Live in a crappy apartment or at home with the folks for a bit. Don't eat out a lot (maybe once a week with a buddy). Don't get sucked into buying things constantly. Everybody wants your money and will do anything to get more of it from you. The worst of them seem to be mechanics, vets, and dentists. Do you know that if you were to do the recommended services for your pet that it'd probably cost as much as a child? How crazy is that?

I have been paying down debt lately, so my savings isn't very high right now. That said, the more debt I pay down, the more disposable income I will have. Once I get to that point, I will be dumping most of my disposable income into savings.
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Old 02-22-2013, 01:00 PM
 
Location: The Triad (NC)
26,837 posts, read 57,830,396 times
Reputation: 29225
Quote:
Originally Posted by yowps3 View Post
How hard is it to get out of poverty?
It's never easy... but it's a LOT harder when you have dependents.

Figure out how to earn a decent living before you take on responsibilities.
You'll probably get a better spouse in the bargain.
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Old 02-22-2013, 08:06 PM
 
Location: Metro Detroit, Michigan
11,920 posts, read 13,245,498 times
Reputation: 12652
Not east, but nothing in life is easy. I started out in the world young, and without much money. Did something foolish at the time and bought a new car to boot, but I did manage to save enough $$$ to buy it outright when living with the parents. The way I got by early on was working as much OT as possible, and when work slowed down, got a 2nd job or went to school part time. I also lived with roommates for quite awhile.

The way I got some money stashed away was frugality and discipline. If I could only expect to earn 30K for the year, than 98% of meals would be prepared at home. No cable TV. No luxury beer, no prime cuts of meat unless on a special occasion, and priority one would be to develop a skill set worth a higher income. At 18, I made 28K after taxes, but I managed to save about 14K. Most of that went into bonds. I also had my 401K matched at 4%. At 19, I made around 31K after taxes, and saved about 16K. Repeated. My standard of living did not increase with my higher income, but my savings did. I was also earning extra money through my investment.

Doing the math, I was about 21 when the market took a crap. I was always afraid of the stock market, but it was something I followed closely out of curiosity. 401K got hit, but my dad gave me some valuable advice. He told me to buy into the market toward the bottom. I had been laid off from my better paying job, and now was in school and only working part time. I was very fearful, but I followed his advice. It was like a big roller coaster ride watching my investments sink at first, but after about 3 months, I was in the black. 3 years later, I was very thankful I listened.

So for me, it was hard work, and a lot of luck. I ended up working at some good places after that and learned new skills that help me earn a decent income today. It takes years really to acquire a comfortable financial position. Some people have very in demand skillsets and can do this much faster, but for most of us, it's not quite that easy.

One scary thing though... It could all be taken away tomorrow through medical problems, divorce, legal troubles, etc. Once you get the money, the next problem is how to guard it and keep it safe. Personally, my life was a bit less stressful when I didn't have any money...



One more thing to note. I think the poor really have the cards stacked against them. When they start missing payments, interest just puts them into an even worse financial position. Sometimes they take out loans or use the credit card as a bridge. Just sinks them deeper into a hole. As another poster mentioned, live well beneath your means. You'll be thankful once you don't have to worry about that mess. Seriously, instead of paying someone else interest, put that money into some investments so people pay YOU!
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Old 02-22-2013, 11:24 PM
 
Location: Michigan
2,198 posts, read 2,149,865 times
Reputation: 2091
Quote:
Originally Posted by andywire View Post
One more thing to note. I think the poor really have the cards stacked against them. When they start missing payments, interest just puts them into an even worse financial position. Sometimes they take out loans or use the credit card as a bridge. Just sinks them deeper into a hole. As another poster mentioned, live well beneath your means. You'll be thankful once you don't have to worry about that mess. Seriously, instead of paying someone else interest, put that money into some investments so people pay YOU!
This is very true. They also get loans and credit cards with higher interest rates. They pay more for food and household items because they aren't able to buy things in bulk to save money. They can't take advantage of sales as much to stock up on things they don't need right away.

They pay more for utilities because they tend to have older homes and appliances that aren't energy efficient. They pay money to landlords instead of home equity because they don't have money for a down payment. The clunkers they drive are often money pits. Job hunting is harder when you can't afford to fly to another state to interview. Some places will even check your credit history and won't hire you if it's bad.

I've been there while paying my way through college and it isn't easy getting out if you have low income and huge interest payments every month- on top trying to eat and pay the bills. And then your car breaks down, or you have to come up with money for a deposit and first month's rent, or you have to go to the emergency room with no health insurance. Hard to pay down debt when you spend all your extra money just covering the interest and have little left to pay down the principle. But if you're determined and make sacrifices, you can do it.

I cut my spending down to basically just food and bills, then started systematically knocking out debt. No cable, no movie rental, no trips to the movie theater, just internet. No clothes purchases, no eating out. I even stopped having a phone. Need to get a hold of me, send me an email. I found a gym that was only $20/month if you pay for a year in advance. When little things on my car quit working I googled the problems and found Jury-rigged solutions. When my brakes needed changed I bought the parts and learned from videos on youtube how to do the work myself. I got the most bare bones car insurance I could find.

I used my tax return to buy a large chest freezer and started filling it up with sale items and quit wasting food. I got a wholesale club membership and bought food in bulk (50-lb bags of rice, 10-lb bags of potatoes). I did calculations on everything to find the cheapest price per unit. The only cleaning supplies I bought were huge things of dish soap that I used for everything...bathroom, counters, floors, etc. No paper plates, no paper towels, no fancy air fresheners, no unnecessary convenience items.

I grew a garden, started all my plants from seed, traded with others on the internet for seeds, or saved seeds from grocery store produce, then froze, dehydrated, pickled, or canned produce from the garden that I didn't use fresh. I made my own wine from Welch's white grape concentrate for 75 cents a bottle.

Then I applied for a bunch of 0% balance transfer credit cards so I could transfer the balance from my 22% card onto it in order to pay it down faster. My credit wasn't good enough, no one would give me one. Imagine that. If you don't need it, they're happy to give it to you, if you do need it, tough luck. Instead I got one with a $4,000 limit and 4% balance transfers for a year. I transferred $4,000 from the high interest card and payed the minimum on it every month, and the minimum on my student loans at 5-6%. All the rest of my money went into the high interest credit card until it was paid off. Then I paid off the $4,000 card.

Now with no credit card payment, I kept the same lifestyle, so I suddenly had a lot more money every week. I had intended to use it to pay off the student loans, but the stock market was way undervalued. I could get a 5-6% return paying off student loans early, or a 12%+ return on the stock market. So I started using all my extra money to buy stocks while making the minimum payment on the student loans.

Then I got a higher paying college job, but still live on almost the same amount of money. No iphones, no eating out, no cable. I still drive my paid off, beat up car with 150k miles on it. I spend as little as possible and invest all my extra money.

Being poor sucks, but it can be a blessing because it teaches you valuable lessons.
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