I come from a county where one's unwillingness to spend aimlessly is termed as poverty. People were seen as poor in the slightest unwillingness to spend fruitlessly. When a person tries to be frugal, they'll attribute it to being stingy,
when you try to be too predictive about the economic situation of the future, they'll say you're being too uptight, when you try to weigh costs or choose value for money they'll say you're a miser and when you try to increase your daily output to get more input they'll say you're too greedy and too rigid when you should be enjoying life.
Originally, when a person understands their level of productivity, this will determine the type of effort they need to put in.
The Psychology Of Compounding
I am a slow worker, it might take me 2 years to earn what a person might earn in six months, but the truth is that if I continuously compound my effort, the nature of my consistency might make me the overall winner in the race to reach a certain goal.
I grew up with people who were heavy spenders, initially, I thought their source of income was the reason why this was so, but I found out that it was a lifestyle that was embedded in their way of life.
I was slower, with making money, they had all the energy, and they spend their money more than they make meaning that as they grow older, they'll need to add more effort to earn money at a stage in life where they should be attaining diminishing returns.
Income & Its Vulnerability
A lot of people are working to feed and pay their rents alone, sometimes it's not the fault of the income, it's in how they choose to channel the money.
Most people find it hard to make money, so when they get their earnings or salaries they feel too deserved, making them feel they need to spend more on physical indulgences as a way of paying themselves forward, they do so by spending excessively on food, women, and drink as a way of being the sole earners before they even think of spending the money on anything else.
while this is good and accomplishing, sometimes we find our earnings almost 80% gone before we hit the realization that there are other things to take care of.
Spending For Compensation
So because people spend too much as a way of compensating for their bodies, they end up spending on only food and renting, automatically rendering them poor irrespective of the depth of their salaries.
This is why I think Financial education is for everyone including those with bachelor's degrees. In reality, a lot of people fail to understand the purpose of balance in life and this is because they live in the moment.
Being controlled by changes in their salaries, changes in their marital status, and even their quality. When we term a certain financial status as "poverty" without looking at some other parameters it could be that we are the ones that are poor other than the people we're attributing it to.
Poverty: A Personal Definition
I think poverty is often placed out of context by people who are not conscious of their lives. In reality, there are no definitive ways to describe poverty because of how people differ in their financial ideologies and ways of life.
When gets to a certain stage where they do not let external parameters determine how they spend their money then they would have attained that discipline that's needed to forestall a financial balance irrespective of their income.
I think working to pay rent and feed is the only thing we can term poverty, provided your input is a bit higher than your output, no matter how much you earn, you're not poor, because accumulating those little percentages overtime is the definition of growth.
Interested in some more of my works?
Keying Into Sophistication & Exposure To Forestall Economic Revolution
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Shopping Online & The Illusion Of Buying Cheap Things
The Humanistic Approach Towards Scarcity & Competition
Spending & Accumulating: The Low & High Point Of The Crypto Seasons.
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Those educational degrees don't count when it comes to financial literacy, that I have realized with people whom I thought would know better like this lady with Honors in Economics which I was actually hoping to learn from her, it turns out she's in debt, living in the moment, broke and can't afford data to be on WhatsApp at times but working and I get to wonder how is she managing her money. It didn't take long for me to realize her money was managing her despite her Honors in Economics.
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Hahaha that's quite a cheeky one there. In all sincerity I think degrees are just necessary evils, it facilitate in helping people seek jobs and not to truly educate them, it's more of a weapon to find money. The lady with the honours, it could be that she just scaled through school by the scruff of the the neck, sometimes, the kind of education we truly need is distinctive and unique.
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An interesting take in the meaning of poverty. Thus, poverty could be said to be ones inability to grow financially.
It makes a lot of sense because it could easily incorporate other factors. First, it tells more of what a person is able to do with what they earn instead of about the amount they earn, and most importantly with this, poverty is individualized, and living a flashy life doesn't mean that one is rich, just as appearing less-flashy doesn't imply that one is poor!
This is the truth, I feel that we often generalize the meaning of poverty and sometimes we do it oddly without taking our experience of what life truly is into consideration. Poverty can cover a lot of aspect with that definition, even if not all: it's the inability to grow financially. Sometimes we just have to look into our economic background as well, the way we spend and our ideologies.
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I know people who are always making an excuse that they need to "reward" themselves for working hard. But when you always give in to cravings, to impulse buying all the time, I don't think that's called "reward" but a "lifestyle" already.
Yeah, I guess this is the concept of trying to reward oneself for working too hard, in all honesty, this doesn't end well and this is why people should try to more inclined into their finances the more.
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Great Post!
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Thank you man, always.
Sometimes trying to fit into an unrealistic reality or trying to please people is one of the main reasons why we ran into debt, sometimes having financial education might not save some people because they know what is right but they want to live in a reality that is not theirs.
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Well, this life sha, hahaha, I think most of the reasons why people spend beyond their means is because they want to accept recognition and validation. The aim to create the impression of wealth by some people is totally questionable..
hmm... the way people classify poverty is your dressing but what they don't know is that the truly billionaires don't spend too much on their looks like those who classify themselves to be rich. The major difference between them is that these billionaires have a great deal of financial education and know how best to manage and grow their money than spending it on something that that do not yield much value.
Bro, please start a financial education class! I would love to attend so I can fine tune my head.
I try to look as modest as I can and this is because, I like it, I like people judging me from what I wear because that way there won't be pressure on me to impress anyone. Most people dress expensive to impress the opposite sex, it's all life of fakery and impression.
Omo, maybe one day, when I've finally gotten enough knowledge to go on hahaha. I think such session means everyone will learn no matter who the chief speaker is.
Hmm that’s true! The main reason for dressing so nice is to impress the other gender! Even me, aside that I love looking nice and attractive, that comes my next reason!
With all the knowledge you have been pouring on Hive, you still never get enough. I would do with the one that still remains in the well.
I agree that it is subjective and it will vary from person to person. If you earn more than you spend, then there isn't a reason for you not to save or invest that money. As that money will add up over time due to compound interest. If you can't make ends meet, then I don't think there is much they can do outside of getting a better-paying job.
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Very few people knows about compound interest and this is because, some aren't even aware of what it means, except that they're living well and getting by in life. It's a sad story but then, it's what happening with some people.
The truth is, I agree with you on many of the things you say in this post; but personally, I believe (in my opinion) that the problem that makes people poor in most cases is the lack of vision to understand that they must produce much more than they spend.
I think (and again, it's my personal opinion, so I understand anyone who disagrees with this), how stingy is one who, having enough money to live comfortably, unnecessarily deprives himself and his family of the quality of life that could be given, skimping on spending even on the most basic things by simply believing that he don't deserve.
I also think that there is a difference between being stingy and being spendthrift, and that both are extremes that should be avoided in order to keep our finances healthy.
The most important thing is that we must determine the lifestyle that we want to give ourselves (the lifestyle that we consider worthy for ourselves and our families) and learn to produce money based on that quality of life; but understanding that we must always produce money in much greater measure of what we spend it, because that is the key.
Because otherwise a problem occurs, because let's put a hypothetical case, if in a water tank we put a hose that fills the water tank at a rate of 10 liters per minute, but we take water out of the tank at a rate of 15 liters per minute , then something is wrong, and there will come a time when the tank will not have enough water to give us. Well, it is exactly what happens with money if we spending it more than we earn it.
Good post. Thanks for sharing. Greetings!!
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You highlited very important factors that are neglected by many individuals today in our country and society, and to be honest I do fall victim too sometimes on the issue of spending for compensation sincerely I don't know where I got that advice that life must be as such, in as much as it is good not to deny the body what will sustain and keep it healthy, it is thoughtful to maintain and drive towards balancing. I think financial balancing is the most problem people are having this days, if one is having poor spending tactics such a person will face financial challenges definitely.
You're right about how people view and characterise a person who's set out to financial balancing, they call you all types of names that suits their desires but one of the things I am really dealing with is to absolutely mind my business and to give deaf ears to what people think about me, my brother these are the same people that if you fail tomorrow they'll mock and laugh at you and call you all sort of names... At some point doing what makes you happy is the best choice amongst all...
I'm blessed with this Broo🙏💜
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Fuck what other people think.
You just do you :)
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