Does the poverty trap threaten you and how to get out if you have already landed in it
'02.02.2020'
Source: Life hacker
When work becomes torture, but there is no money forever, there is only one way out - to overcome the habit of being poor, writes Lifehacker.
The work is tired, and every day you work more and more, not paying due attention to personal hobbies, relationships and relaxation ... The salary finally meets your expectations, but I just want more, because the costs are growing every day.
No matter how much you earn, there is always a risk of falling into the trap of poverty.
What is a poverty trap
This concept came to us from the English language, where the phrase poverty trap is used to describe an economic phenomenon when a person stops working to receive social benefits. There is no point in his work, since often the level of salary is even lower than the unemployment benefit. Such a trap of poverty makes each generation poorer and poorer, and in fact there is no way out of poverty.
Now, however, the trap of poverty means a broader concept. It does not describe the amount of money and the availability of property in a person. Both the unemployed and the millionaire businessman can fall into the trap of poverty.
The problem is not the lack of savings in the account, but the incorrect perception of money and ways of earning. No matter how much a person earns, he will always be few. This is a trap.
Who runs the risk of falling into this trap
Low skilled workers
Any work ennobles a person, but not any is worth it. But at the same time, not every handyman falls into the trap of poverty. An experienced worker can find the most profitable option that guarantees a good income. But not everyone has the necessary experience and time to look for a good job.
This raises the question: how does this relate to the poverty trap? The fact is that children born in a family where their parents performed low-skilled work are at greater risk of falling into the abyss of poverty. In 2015, scientists from the University of Massachusetts conducted an experiment in which it turned out that poverty was inherited.
The problem arises not only with finances, but also with their incorrect perception. Being brought up in poor families, children do not even think that work can be fun, because its main goal is exclusively money. Growing up, a child can follow in the footsteps of his parents and choose the profession with which he is already familiar.
Low-skilled labor is directly related to the lack of higher education. Often you can observe such a picture when a person, unable to study at the university, eventually finds low-paying physical work in order to provide for himself and his family. That's all: the trap slammed shut, and now it is much more difficult to get out of it.
People who spend their free time on useless vacations
Actually, any rest is good. Nevertheless, there is a difference between a one-time "lazy" weekend and a regular waste of free time for nothing.
And the problem is not even that there is no money for a wholesome and active vacation - rather, there is not enough energy for it. So it turns out that instead of a more laborious pastime, we choose something affordable and simple: sit with friends in a bar, watch a new series from Netflix or just lie on the couch, looking thoughtfully at the ceiling.
Here is a vicious circle for you: I want to develop, which can help to improve well-being and financial situation, but there is neither the strength nor the time. And that means there is no development. Isn't it a poverty trap?
Having given birth to a child too young
For a good parenting, the desire to be parents is not enough. Nevertheless, this does not interfere with many young girls at their own peril and risk of having a baby, not having enough finance to support it. And this is only one side of the coin.
On the other hand, the girl does not have the opportunity to graduate, to find a good job that could provide her with a comfortable life. So it turns out that having a child in her arms, a young mother automatically falls into the trap of poverty.
On the subject: Married in America: love and poverty
After leaving the decree, the situation does not improve: the girl has no corny work experience, and sometimes a higher education diploma, which significantly reduces her chances of getting a good position.
As a result, we get another cell in the trap, from which, of course, you can get out, but it will take a lot of time and effort.
Living a lifetime in a poor country
A country, like a person, can fall into the trap of poverty. A poor economy, corrupt leaders, unstable trade - all this leads to the fact that an ordinary citizen, who has lived all his life in such a country, is automatically captured by poverty.
In conjunction with this, he is surrounded by people who, like him, try to survive, not live, earn as much money as possible in order to finally “redeem” themselves from captivity. And thus more and more driving themselves into a vise.
How to get out of the poverty trap
1. Change the attitude towards money
Many of us begin adulthood literally without anything. We rejoice at our first salary and understand that our efforts were not in vain: now we can realize all our dreams and plans. Yes, only in proportion to the increase in salaries, our requests also grow. And there is nothing wrong with that, on the contrary, striving for the best is a huge plus that allows a person to develop. Money is a good motivator, and yet it should not be the main goal of the work.
One thing needs to be realized: you manage money, and not vice versa. And their quantity depends only on you. You can spend everything on empty entertainment, and then complain about the low salary. And you can skillfully manage finances by saving money or investing in the development of your own business and yourself. And in that, and in another case, the amount of funds can be absolutely identical, only the correct handling of money is the guarantee of their increase. So do not start by criticizing your own work, prices, or bad power. Start with yourself.
2. Consider even minor expenses
On the way to work, you definitely need to go to your favorite coffee shop near the house. And after a hard day, you really want to enjoy something delicious, because you deserve a reward. Each has its own small traditions, habits and whims, which seemingly take a small amount of money.
The key phrase is “it would seem”. Have you ever tried to calculate how much money a month is spent, for example, on your favorite morning coffee? Or all the cute trinkets that you were unable to get past? How much did you spend on camping trips with friends?
One-time small expenses do not reflect too much on your finances. If they were one-time ... It seems to us that if we spend $ 10 today on some kind of whim, then this will not affect the wallet. But even with such a minimal spending per month, you are already losing $ 300.
The best way to control your own finances is to keep your budget clear. Whether it’s special applications or a notebook where you will pay absolutely all expenses (even the smallest) - any of these options will help at least realize where the money is going.
And then it’s small: to learn to control the inner shopaholic and finally get free from the shackles of poverty.
On the subject: 5 US Social Security Secrets: To Not Be Poverty
3. Stop waiting for a miracle
The idea that someday a unique chance will turn up to become rich in just a day, perhaps, has visited many of us. Buy a lottery ticket for $ 2 and win a million. To inherit a huge house in Norway from an unknown relative. To earn a promotion at work and earn so much that is enough for absolutely everything that the soul desires.
Of course, there are situations when someone is really “lucky”. But instead of believing in luck for years, you can independently achieve career success.
Your earnings depend solely on you. You should start small: learn to save money or at least not spend it on unnecessary things like lotteries that promise you golden mountains. To strive for professionalism in work, not to get into loans for the purchase of status items and not to hope that someone will make you rich - only you can.
4. Do not be afraid to take risks
Fear of trying something new, deviating from the usual course, inability to take risks correctly makes people either do nothing or commit rash acts. And in that, and in another case, a person is still trapped: because of his own fear or irrational attempts to get rich quickly.
The risk is not to quit your full-time job, gain credits, and rush to Bali to be creative. Risk is a smooth, rational change in one’s life and habits.
You can go to continuing education courses or turn a hobby into your favorite business and a way to earn money. The main thing is not to rush, not to put money in the forefront, but simply to enjoy the first changes for the better that you bring into your life.
