Do you ever wonder how that homeless man in your town lost everything? How can someone go from living well in a home of their own to begging for food on the street corner? If you don’t know the answer to this, then you should really be scared.
The old adage, “What you don’t know can’t hurt you” is completely false. If you do not know how some people have plummeted below the poverty line, then chances are you don’t know how to avoid it. For this reason, I give you the 4 reasons for poverty.
There are plenty of people out there that are looking for the easy road to wealth. More often than not, this leads to criminal activity, and some unsuspecting people can suddenly lose everything they have.
Fraud can come in many forms. Here are some schemes that could wipe out your bank account.
- Fake inheritance (typically shows up in your email inbox)
- Investing in a small business (sometimes they just take your money and run)
- Identity Theft – make sure to keep your eye out for fraudulent charges on your credit cards!
Many of us have seen Murphy show up at our door from time to time. Sometimes life just hands us a batch of misfortune, and there’s really not much we can do about it. I would consider the experiences below to be misfortune, and they could even leave you homeless.
- Your house is overcome with termites and is condemned.
- You and your spouse lose your jobs
- You are diagnosed with a disease and your medical bills aren’t covered by your insurance (or you don’t have insurance)
The best way to beat misfortune is to be properly insured, develop multiple sources of income, and save up money into an emergency fund. Misfortune will happen – it’s best to be ready for it.
Some people are just plain lazy. For whatever reason, they don’t think that they should be responsible for their own lives. Much of the time, these people will sponge off from anyone they can, just so they can avoid lifting their own finger. Sometimes they get lucky and they connect with a rich girl/guy, but most of the time, their mooching gets old and they’re tossed to the curb. If they don’t find someone else to take care of them, then the curb is where they’ll stay.
If you’ve ever visited a developing country (some of you may refer to these places as 3rd world countries), you know that there are entire regions that live below the poverty line. It’s basically part of the culture.
Avoid Poverty – No Excuses
If you carefully study each of these reasons for poverty, you’ll soon realize that almost every cause can be avoided!
- Keep your eyes open for fraud – if it seems too good to be true, then it probably is…. don’t ever give your money for something you don’t understand.
- Save up your money and be ready for that large unexpected expense. If you have the money, suddenly that hole in your roof doesn’t seem like such a big deal.
- Realize that money won’t be handed to you. If you’re willing to work, then chances are you’ll be just fine.
- You most likely don’t have to worry about cultural poverty if it doesn’t affect you already, and for many of you, it doesn’t.
Have you ever been burned by any of these reasons for poverty? Or maybe you know of someone that has? Please share!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.