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David, it's sad that a guy who has a great opportunity (and making great money for an elementary school dropout) because of you, and with barely any expenses, lacks the financial wherewithal to save any money.
You're absolutely right that with some folks, it's all in their mentality. I wouldn't even call this guy poor and look at how much he has squandered while rejecting your offers to help him manage his money. This mentality pervades in both rich and poor.
The stat I heard on the radio today was that people making $10,000 annually or less spend on average $600 on the lottery (and mainly scratch-offs).
So in other words about $50/month or ~$11-12/wk depending. Yeah that's more than I would ever bother spending on lotto. Maybe $2-3 bucks a week on quick pick tickets and that seems like plenty.
The stat I heard on the radio today was that people making $10,000 annually or less spend on average $600 on the lottery (and mainly scratch-offs).
Wow, really?
$600 invested annually in a mutual fund like Amana Growth over the last 20 years would now be worth $32,578 (much more than the $12K invested). This fund has a minimum of $250 for regular taxable accounts and $100 for IRAs, so it is accessible to low income people.
Can you be poor and educated? Can you be educated and bad with money? Life is a beatch, most of the lottery winners are not poor, some are quite well off. Money and "luck" tend to favor some than the others even when playing lottery. 27-Year-Old Hedge Fund Manager Wins Powerball Jackpot
Of course buying 15,000 tickets helped, but against all the statistical odds rock bottom poor rarely win anything.
While we are on the subject, being lazy doesn't make anyone rich, either.
A minor quibble here, but being the right kind of lazy can actually be helpful. I don't like working for money because I'm a little lazy. That's why I save and invest. Obviously, I still have to work and do a good job to keep my job, but if you're a little lazy and you use it the right way, it can be helpful.
It's a mentality. Whether ingrained or learned, it's a mentality.
Let's just say, there's a person I know.
-He dropped out of elementary school.
-He grew up poor.
-Never really knew his father, his mother was/is a drug addict, and he has done drugs/smoked since he was 11.
-He's got kids by different mothers spread across the country.
-He has a criminal record.
-Best job he held for the last ~5 years in a small-town was working for a city, part-time, at $9/hr.
-He is 32.
A unique situation has enabled him to work for my company. He has worked here since October. He works hard and a lot, thus he gets paid more.
His first few checks from us exceeded $3K (bi-weekly); every check he has received since October has exceeded $2K. He lives rent-free, with his girlfriend and her three kids (the youngest one is his). She brings in about $400-$500 bi-weekly, + gets SNAP/cash aid/child support.
-he smokes two packs a day (I believe he smokes weed too)
-he has developed an unhealthy fast-food habit
-I see him with scratcher lottery tickets at least once a week.
-his only bills in the world are 1 cell phone and auto insurance
I am not kidding you here: HE BLOWS THROUGH THAT $2K-$3K EVERY TWO WEEKS.
and is usually out of money around 4-5 days before payday.
I've offered to help with managing his money. He mostly won't listen, and dismisses that there's even a problem.
Like I said, it's a mentality.
Yes, that is the problem. Once that mentality is developed, adding money usually doesn't solve it.
A friend of mine once described a compulsive lottery player as "someone who decides to sit in the (crap)house and wait for the lightning to strike it".
A pretty colorful, and painful observation on the lack of direct incentives in our present-day society.
Yes, that is the problem. Once that mentality is developed, adding money usually doesn't solve it.
Which is proven by the fact that somewhere in the neighborhood of 70% of all lottery millionaires, are in worse financial shape today than they were before they won.
I think it sounds so backwards. The poor should not be wasting money on a pipe dream (who actually believes they will be the lotto winner??) We only played the lotto 1x last year and 1x this year. Just due to the high amount, but would never dream of buying more then one - let alone $500 worth of tickets! We do not smoke or drink at all, and happy we dont spend our money on those things. Honestly, I understand why so many poor stay poor.
I absolutely wouldn't consider us rich by any means either but we make good financial choices and have priorities which many lacks.
$600 invested annually in a mutual fund like Amana Growth over the last 20 years would now be worth $32,578 (much more than the $12K invested). This fund has a minimum of $250 for regular taxable accounts and $100 for IRAs, so it is accessible to low income people.
Uh, no. You're forgetting that in many states they will never be allowed to have those assets without losing their benefits.
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