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This is clearly just one of many reasons, but personal finance is not (really) taught in schools, and parents seem to pass down their financial ignorance more often than financial savvy; I was fortunate enough to learn the "if you don't have it, you don't spend it. If you don't need it, you don't buy it" philosophy at a very young age, and that stuck with me. I can't say the same for a lot of my friends (mid-twenties college grads) who are already racking up credit card debt on top of student loans, and this will continue for life. Not many people have the power to stop living a life of "wants" - it's too comfortable - especially if they were raised watching their parents live like this and developed a false sense of purchasing power. "I can't afford to live like this" is an unpleasant thought, but it can really snap you into reality if you let it (which I did before I even tried to live beyond my means).
Lack of income plays a role, but I have always felt that it has more to do with a lack of serious systematic control on spending and a repetitive savings pattern... another word, pay yourself first. Beyond saving, it is important to understand the stock market, because investing is the key to long term wealth. The earlier the better. Procrastination is a trait of those that have to learn to live without. Discipline is a trait of those that win financially.
the answer is most folks who earn 15k a year with all the gimmees, tax credits and programs they can get they are NOT earning 15k a year. in fact they actually have have beaten most earning 30-40k in after tax dollars and in some cases approached 60k after all is gotten.
while not all benefits are available in all states and some states require you to have children for certain benefits the bottom line is for most 15k is not 15k.
Interesting, other government data backs that up.
Quote:
"In 2006, according to the annual Bureau of Labor Statistics Consumer Expenditure Survey, reported purchases by the poorest fifth of American households were more than twice as high as reported incomes." That additional money might represent earnings from unreported employment, illegal activities and unreported financial assistance. A proper measure of well-being is what a person consumes rather than his income. A huge gap has emerged between income and consumption at lower income levels.
What I'm seeing now is a lot of outright, irrational hatred of the less affluent, complete with utterly ridiculous claims, distortions and outright lies. It's typical scapegoating behavior - some people aren't enjoying as much affluence as they'd like, and they fear criticizing the rich and powerful, so they take out their petty frustrations on people who's lives are far more of a struggle than their own. It's pitiful.
I see some irrational thoughts and scapegoating of people's bad decisions.
Surely, some people have it rough. Surely, most middle class people can save for the retirement if they choose to.
bUU, I wouldn't take all of their advice (especially on investing), but perhaps you could pick up a Dave Ramsey or Suze Orman book. You have the power to pull yourself up. You have the power to stop being a victim. You can start doing things today, even small steps to put yourself in a much better financial position in just a few short years. Feel free to send me a private message if you want any tips or have any questions, it all starts with you though. You steer your own ship.
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omg , tell me it isn't so.... holy cow! i am sure glad you picked up on that .
