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Why are some people poor?

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Those who take investment property advice from Robots are a good example of how to stay poor.
 
Ah yes, the famous marshmallow study where children were given the choice of immediately eating the single marshmallow in front of them, or waiting until some time later when they would receive two marshmallows.

I agree the capacity for long term goals versus instant rewards is a necessary prerequisite to earning wealth.

A woman I know is very fond of the dreaded pokies and has lost countless thousands. They are months behind in mortgage payments, and two years behind in council rates, paying an excessive interest rate on the latter overdue monthly payments. Yet when she 'does the budget' from the disability pension both she and her husband receive each fortnight, she still takes out what she terms 'our allowance' of $60 each, i.e. $120 p/f, for the pokies. The suggestion that this could go towards either the rates or the mortgage was rejected on the basis that they needed to have something to look forward to.
 
I find this thread quite interesting and reminds me of a converstaion I had with a colleague the other week.

Im not sure how we got onto the topic but we were talking about buying a first property as my partner and I purchased ours last year at the age of 24. My work colleague who is in his early to mid thirties remarked that he wasn't ready to buy a property yet which is fair enough I thought, each to their own.
But he then went on to tell me how he was going to buy a 4wd and a new speedboat all with the help of a personal loan (about $70,000 worth). This blew me away because I just couldn't understand why you would put yourself into so much debt over highly depreciating objects.

Just an example of how some people only want to live in the moment and worry about the future when it arrives.
 
A topic I have some interest in, and experience, from working with the "poor" for many years.

* I am amazed how many people dont save a % of their earnings, dont rate this as the number one rule of wealth accumulation.

* try not to use interest bearing debt for depreciating items

* do without, including big house, new car, excessive holidays..in order to build asset base ( then u can spend)

* make sure you are born into a family with some wealth, and values wealth accumulation

* dont have poor health, accident, bad luck, uncontrolled risk

* dont get divorced

* dont have too many kids

* dont drink, smoke, gamble, *****, gluttonise ( excessively)..edit..the blotted out bit refers to using prostitutes

* learn, study and practice investment principles

* invest in yourself by attaining qualifications that allow you to continue earning

* if u cant get rich quick, get rich slow, live a long time

* I used to visit unemployed etc, in their homes, they invariably had bigger TVs, stereos, and cars than me, also drank, smoke gamble etc.

(My tenants all had LCD widescreens before me)

* you can show love, kindness and compassion without spending big $

* you can be very disciplined about personal spending, without becoming a compulsive miser, if you are careful..check all religious, spiritual and philosophical learning, to guide you
 
I know some people are "labelled" not deserving and they find it a terrible struggle to break free from the shackles society clasps on them.
 
Wysiwyg, could you give some examples of what you mean in the above?

I rather have the contrary impression, i.e. that there is a lot of assistance available for people who are genuinely trying to improve themselves.
 
Julia said:
Wysiwyg, could you give some examples of what you mean in the above?

I rather have the contrary impression, i.e. that there is a lot of assistance available for people who are genuinely trying to improve themselves.
Click to expand...

Whats this "assistance" u speak of Julia?

This Thread could well of been called why am i poor....besides the obvious not winning lotto etc i can offer up all sorts of reasons...poor choices (drugs) bad decisions (wife) bad timing (expulsion from school)...funny how 1 negative seems to snow ball into many, like getting asked to leave school leads to limited employment choices witch leads to lower pay witch leads to less choice etc etc.

The worlds a funny/strange place...my step father *a millionaire* had a few months off work a couple of years ago...and gets offered to do a forklift course for free through centerlink...and at about the same time...poor old me *no where near a millionaire* had to pay 300 bucks, he has never driven a forklift since, i drive one every day.

Ive had my hours cut at work...so im about to revisit poverty.
 
So_Cynical said:
Whats this "assistance" u speak of Julia?
Click to expand...
There are multiple quasi government or government funded job assistance organisations in my area. Also multiple community agencies which will share the cost of the forklift ticket you talk about and suchlike expenses, e.g. workboots, transport to out of town worksites for interviews etc.
 
And yes, you're right. Poor choices do affect future choices.

I'm sorry to hear about your hours being cut. Hope it's only temporary.
Good luck.
 
Julia said:
Wysiwyg, could you give some examples of what you mean in the above?

I rather have the contrary impression, i.e. that there is a lot of assistance available for people who are genuinely trying to improve themselves.
Click to expand...

Sure Julia.

Example one involves the kid who has a rather nasty father that is not well liked in the community. The kid gets bullied at school and is rejected with work applications. He or she is "one of the nasty mans kids".

Example two involves the kid who committed a crime and was punished duly for such. The community sees the kid as untrustworthy and "oh he`s the kid that did that crime".

So to sum up, they may be a better person than they were but people don`t forget and like to administer what they see as deserved punishment by denying the individual fair passage through life.
 
I read the opening post and the last few up to date posts so please excuse me for not reading all.

Some people will always be poor due to poor choices, poor partner choices and just plain old bad luck.

My best mate and I both entered apprenticeships in the 1970's. Today my friend is working very hard to pay maintenance for a child from a previous marriage plus working hard for his new wife and 3 kids. He pays rent and can not see himself ever buying a property.

I myself finished my apprenticeship and travelled Australia and the world. Then I got married and my good wife and I worked hard and paid off our house on the Northern Beaches. We had no kids and no divorces from the past so we just concentrated on a few things only, retirement, travel and a setting up ourselves for a peaceful life. We have this now and are very thankful for it.

However, lets say the unfortunate thing happens and one of us gets chronically ill, then nothing but life matters anymore. By that I mean if I had sell everything to save my wife's life then I would. Moving down the track, lets say things didn't work out and my medical bills cost me my life savings then I would be dependant on government benefits. So what I'm trying say is that the so called wealth can be blown on saving some ones life and then to make a comeback may not be possible. Under those devastating situations people should be entitled to some form of Government help.

Poorness can result from severe medical situations than can never be recouped, please keep that in mind folks. Cheers.
 

Yes on the surface they seem to be offering "help" however in reality these organizations are there to employ people with degrees in social service etc and so the politicians can point in there direction and say...look were doing something, blame them if i doesn't work....IMO

Bill M said:
Poorness can result from severe medical situations than can never be recouped, please keep that in mind folks. Cheers.
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Hey Bill...i met a Kiwi guy many years ago that had a stroke when he was 20 something...he was a chippy and had no insurance of any kind and lost more than half the movement on one side, the whole side leg arm everything.

Just incredible bad luck, poor bastard was coping ok years later, but was poor as and had nothing but poverty and unemployment to look forward to...he was a nice guy too.
 
Bill M said:
Poorness can result from severe medical situations than can never be recouped, please keep that in mind folks. Cheers.
Click to expand...

Thankyou for that story Bill M.

I think for some people, no matter how hard they try, things don`t work out the way they had wanted.

In reality we see many people delicatetly and ever so subtly stomped on in order for others to gain higher ground.
 
Julia said:
Is it to do with our genes, the role modelling we receive while growing up,
our peer relationships, where we live, how much education we have had etc?

Or is it more a matter of attitude and ambition?
Click to expand...

I expect attitude and ambition has a lot to do with 'financial' wealth, but...


... what if there is much more to the notion of 'wealth' than financial measures.


And what if, there is no such thing as coincidence and luck... they are just loose concepts that people tag on non-understood circumstances.

Another concept I notice mentioned is intuition... what a powerful gift that can be when one starts to understand it and can distinguish it from impulse.

By 'coincidence' I've come across certain people at fortunate/oppertune times and 'luckily' I'm learning to dismiss impulses and 'intuit' better what the best/right course of action is.

What if we are not meant to be preoccupied with the persuit of wealth as in financial assets, but that wealth or the lack of, is not the end, but the course.

I believe they call it faith... no not like in religion and nothing to do with what many so called 'faiths' subscribe to as in 'God'.

It's sorta like the old saying 'you can lead a horse to water, but you can't make it drink'. It's something that comes from within and that you have to let yourself become attuned to and want... like the will to live.

Getting back to the question "Why are some people poor?"... I guess for me the short answer is it's just a circumstance, a test that we must pass in the evolution of life.
 
If you have a serious look around at MOST of the poor you will see ONE COMMON thread,which leads to poverty.

Having children too young.

This leads to 20 yrs of life for those who are poor of.
(1) Single mum little opportunity to raise above the poverty line.Always struggling.
(2) Single dad,with child support/rent/work little chance of anything else.

Single mum has a pool of single dads to find a partner who doesnt need the burden of the increased cost of your kids on top of his.

While not ALL are doomed those who are caught in the continual grind and fail for all the reasons why wealth doesnt come their way as mentioned above I'm sure you'll ultimately find come from single parent backgrounds.
 
Taking the easy option and bad judgment IMO is why most people are poor. A lot of people are happy without large amounts of money though. Would be pretty crappy if you simply ran after the dollar for years wasting a lot of valuable time and then failed
 
Because they do not recognise opportuntity when it knocks. Some people are purely and simply not "go getters". They are conditioned to accept their lot in life and are happy to do so.
 
trainspotter said:
Because they do not recognise opportuntity when it knocks. Some people are purely and simply not "go getters". They are conditioned to accept their lot in life and are happy to do so.
Click to expand...

True. But if everyone was a go-getter, there would be a lot of more miserable people around because not everyone can "get". There's not enough to go around.

Go getters are only successful because there are lots of non-go getters around
 
Great post Chode and Awg

Money management and people living for the moment..

I have met a few like that Chode and if you do say something, their reply is, you gotta live.....
 
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