getting and EF while poor

[LivingAlmostLarge]

I think that's a big deal. I am shocked by how some of these people no matter how much I try to encourage people not to use their tax refund to pay for their taxes and pay an extra $40 they don't get it. I saw can you wait. I can't wait. I need the money now. I can't make rent. I need and advance. I don't know what to say to that. I don't think they are spending it on stuff but just don't make enough to survive.

[JBinKC]

If I were poor most likely I would live out of a vehicle to survive. You are eliminating a rent expense and limits you from spending money frivilously given the lack of space to hoard and gives you the flexibility to escape the environment that limits your potential.

[~bs]

^

I've heard that's not as easy as it might seem, there are "non-homeless" people that tried it. It's generally illegal to do in many cities. Like if youre in a residential area pulled over and sleeping in the car, the cop can tell you to move. If you're drunk, well you have a problem.

[prosper]

Poor people unable to save $500

1) Poor people are focused on survival

I've had a very humble beginning. Lots of moving around, changing schools, homelessness, sleeping in cars, eating fast food everyday, not growing up with both parents, living separably from sibling, etc. In addition, I have volunteered in my local system and worked with some pretty tough kids. From my experience, survival is the dominant gene in this particular economic class. You are typically the product of your environment. Consequently, the behaviors you "lived" as a kid are really hard to change as an adult. To some people, its a win to max out your 401k and roth for the year. To others, its a win just to eat.

2) Those that do learn financial literacy generally have a late start

I started in a hole. A big hole. Mentally and financially. On the other hand, I have a family member whose kids had a great start in life. My Cousin had both parents around; went to college debt free, given a paid for home; and has a great job. He had a great start in life.

[Singuy]

I advice people to check out this video on poverty first.

https://www.youtube.com/watch?v=ydKcaIE6O1k

Basically studies were conducted and found that people score much lower on IQ tests when they are strapped for cash vs someone who isn't. They conducted this study on the SAME people who were cash strapped vs cash rich which was very interesting. So if people are hungry and constantly worried about their next meal, it's much harder for them to make the right decisions.

With that being said..I firmly believe it's a cumulative effect. There's a finite amount of time in your life that you can either throw it away or really plant yourself the seed that can bring financial stability for the rest of your life. This time starts during your late teens and up to 25-26 years old. You win or lose in life depends on these 10 years.

[veronak]

I say we support by not judging and understanding that all circumstances aren’t the same.

First, we need to educate. Best thing that one can do is take a look at where their money is going. By doing this you’re sure to find a leak in your finances (e.g wasteful spending).