Why Do People Stay Poor

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Poverty is very much detested by people but it’s quite unfortunate that hating it doesn’t mean it can’t come to you.

To come out and win the fight against poverty, you need to practicalize the solutions listed in this article. These remedies are what the rich have been practicing over time that made them rich and has also sustained their riches. 

So, stay with us!

There are a number of views as to why people are poor but there are two broad views as to why poverty is obtainable. The first lays emphasis on the role of economic fundamentals – for example, the disparity in individual traits like talent or motivation makes the poor opt-in for low productivity jobs. The second is the poverty traps view which lays emphasis on the access to opportunities that depends on initial wealth and hence poor people ate left with no other choice but to work in low productivity jobs. 

Are The Poor Getting Poorer?

This question in other words means that is the gap between the rich and the poor truly widening, or is the growing inequality a myth? According to Andreas Peichl and Martin Ungerer, Center for European Economic Research (ZEW), Mannheim, the poor are not inevitably poorer, but the rich are indeed getting richer. Furthermore, there have been negative developments in the past with regard to persistent poverty and income inequality that have not been offset by the current boom in employment. 

What Reasons Keep The Poorest Families Stuck In Poverty?

There are a number of reasons why the poorest families in the world get stuck in poverty. They include:

  • Inequality and marginalization
  • Conflict
  • Hunger, malnutrition, and stunting
  • Little or no access to clean water, sanitation, and hygiene
  • Climate change
  • Lack of education
  • Poor public works and infrastructure
  • Lack of government support
  • Lack of jobs or livelihoods
  • Lack of reserves

Why Do The Poor Remain Poor?

A lot of people don’t desire to be poor, circumstances and factors which seem uncontrollable to them play a huge role.

In April 1995, a poll organized by NBC News and the Wall Street Journal revealed that 60 percent of Americans believed the biggest cause of poverty was “people not doing enough.” Only 30 percent blamed circumstances beyond one’s control, while the rest thought it was either a combination of both or weren’t sure.

Here is a list of factors and activities that increase one’s level of poverty

  • Lack of reserves
  • Being stuck in a debt trap because of desperation
  • Ignoring Big Debts
  • Feeling powerless to change anything about financial hardship
  • Paying yourself first means putting a portion of each paycheck into a savings account before divvying the rest out to cover expenses
  • Not paying yourself first i.e. taking on expenses before putting a portion of each paycheck into a savings account.
  • Putting Today’s Happiness Before Future Financial Needs
  • Lacking an Emergency Fund.
  • Not making savings a priority
  • Not course-correcting your finances i.e. not using your creativity and critical-thinking skills to find and implement more cost-effective alternatives to financial expenditure.
  • Too many expenses on housing
  • Not having a money plan.
  • Not knowing where your money is currently going will make for turning it in the direction it is perceived to do the most good which often turns out the other way.
  • Not separating wants from needs
  • Not having degrees or training that make for good-paying jobs.
  • Prioritizing investment in stuff to invest in yourself.
  • Trying to get rich quick.
  • Not sticking to a budget.
  • Not planning ahead of your bank account.
  • Buying deprecation assets.
  • Unwillingness to forgo/sacrifice a pressing need for another.
  • Trying to have too many things too soon
  • Spending more money than you earn/make.

How Can I Become Rich From Poor?

In reality, anyone has the potential to become wealthy. However, getting there necessitates a combination of bravery, knowledge, effort, astute decision-making, and a little bit of perseverance.

There is no one surefire way to become wealthy overnight, but there are some tried-and-true methods for accumulating wealth over time.

  • Plan and set goals
  • Don’t overspend/spend beyond your earnings.
  • Create multiple streams of income
  • Read and educate yourself on financial knowledge and principles
  • Avoid toxic relationships by surrounding yourself with encouraging, positive, curious, helpful, and can-do people.
  • Don’t engage in negative self-talk, be optimistic!
  • Live a healthy financial lifestyle.

The Reasons Why People Stay Poor

Poverty is a problem that is not just peculiar to countries but to the world at large. Statistics from the World Bank in 2015 have it that over 700 million individuals were living on less than $1.90 daily. Though quite a shocking figure, (in 1990, it was over a billion) that’s still a huge number of people.

The said number also includes extreme poverty that is defined by the United Nations as “a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, shelter, health, education, and information. It is not only dependent on income but also on access to services.”

The reasons why people stay poor in the world include:

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1. Not Open to learning

To be exceptional in the marketplace, you are to have a skill set that is relevant and pays well in this dispensation. This is the case because your income is a direct result of your skillset.

Have you thought of the reasons why doctors, lawyers, engineers, and many other professions are required to spend a lot of years in a university, it is because they need to learn and master their craft very well.

SEE ALSO: 25 Legit Crafts That Make Money From Home In 2021

2. Lack Of Perseverance

The languages of perseverance are “go for it until it is gotten”, “don’t give up” “quitters never win, winners never quit”,  etc. 

There’s the saying that when the going gets tough, the tough will get going and that is what you need to live above the reasons why the poor stay poor.

For example, it is said that an individual is known for perseverance when the person does not give up easily not quit but puts in hard work, diligence, time, and perseverance in order to learn a high-income skill, build a business, and be successful at it.

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3. Desire To Get Rich Quickly and Easily

It’s not bad to desire that you get rich quickly and easily but it becomes bad when you cut corners and engage in all manner of evil to ensure that you get rich. One thing you shouldn’t forget is that money acquired through this means is a trap and snare.

You’re to note that time and patience are required for building sustainable wealth.

4. Financial Indiscipline

One of the reasons why people stay poor is that they give in to impulse buying and a lot.

An example of financial indiscipline is purchasing things that are not in the budget and are not immediately required.

The remedy to financial indiscipline is learning the art of financial self-control and resisting the urge to buy something you might want at the moment at a go.

MUST-READ: Top 15 Ways Poor People Try to Look Rich

5. Blaming Others For Your Financial Mess

Blaming others for your financial mess is one of the reasons why the poor stay poor.

There’s a wide saying that when you are pointing a finger at someone, that the other four fingers of yours are pointing at you. This means that you are the architect of what you want your financial life to look like and it is your duty to take responsibility for your financial life.

It’s up to you to stop the blame game, find out your mistakes and work hard to achieve your goals.

SEE ALSO: 15 Biggest Financial Mistakes People Make

6. keeping The Wrong Company

The popular axiom that goes, birds of a feather flock together plays out very much here. 

An instance of keeping the wrong financial company is surrounding yourself with a company of people whose thought about finance is always negatives (pessimists)

To be rich, you are to surround yourself with individuals who are financially successful so as to learn their success secrets which you can implement and become rich.

7. Fear

Fear is one of the reasons why people stay poor. Many individuals are afraid of the unknown and this has to be a huge stumbling block for many.

Money talks are about taking risks and that’s often where fear sets in but the attitude of one who wants to get rich is not to become afraid of investments and money moves but to invest and take calculated risks.

8. Having No ambitions Goals

Having no ambitious goals is among the reasons why the poor stay poor. 

For financial goals to be realized, you have to ensure that you are not faint-hearted but hardworking, self-disciplined, focused, and determined.

The human body wants comfort but unfortunately, no one is rich by staying within his/her comfort zone so, set big but realistic goals today!

SEE ALSO: 40 Powerful Quotes About Goals And Goal Setting | 2021

9. Greed

Greed has a way of making its victim neglect investing a part of his/her income rather than resort to spending all of it on self.

To overcome greed which is a sure way out of poverty, you need to take a break, carry out the financial evaluation, set goals, and start saving and investing.

10. Lack of focus

On why the poor stay poor, lack of focus is one of the reasons. 

An example of lack of focus is living without a concentration of attention on what you want in life financially. 

It is needful to be focused financially and as soon as possible because there are many distractions in life such that in the absence of focus alongside perseverance, achieving your financial dreams will be a hard nut to crack.

11. Ignorance

Just as it is said that, if you think education is costly, try ignorance, so is it in acquiring financial knowledge. Wealth and riches obey principles and these principles are only applicable when they have been known. It is in this regard that you are to ensure you acquire financial knowledge through books on Financial intelligence, seminars on finance, etc. Even if requires that you pay to get the knowledge, please do because it would really benefit you in the long run.

Frequently Asked Questions (FAQs)

What are the five (5) ways to end poverty around the world?

You can end poverty by providing the following; Quality to education, Access to healthcare, water, and sanitation, Economic security, Child participation

How can I fix a poverty mindset?

To reset a poverty mindset, you are to do the following: Seek out a mentor, Avoid negative people, Develop an Attitude of Gratitude, Start Formulating a Plan, Put Your Plan into Action, Commit to Bettering Your Life, Become a Mentor

What is an emergency savings fund?

An emergency savings fund is a savings account used by individuals to hold extra cash in case of unexpected expenses that can’t be delayed. 

Conclusion

There are a number of reasons why the poor stay poor and in our commitment to provide you with resources and information on financial intelligence we have made known to you the things that keep the poorest families stuck in poverty, why the poor remain poor, how to become rich from poverty and the reasons why people stay poor.

If you can take on due diligence to practice all we’ve made known to you here, we are sure that you would thank us later…

References

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