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The Difficulties of Saving Money When Poor

Why is it so hard so save money when you are poor? It may seem like it’s an easy fix, and all you need to do is pay your bills and budget in order to save money, however this is far from the case. People who experience poverty understand that no matter how hard they try it is extremely difficult to have enough money left over after paying bills in order to save.

Paying Late Charges and Fees

If you are poor then you are probably well aware of the difficulty of saving money when you have to deal with paying late charges and fees. Although these fees usually are pretty small on their own, they often add up to a substantial amount over time, especially if they are not paid off right away. How can you save money when you are constantly dealing with these fees? The answer is you usually don’t. The most common type of late fee comes from credit cards, as you often have to pay over $20 each month if you do not pay off your entire credit card bill.

Lower Education Means Lower Paychecks

For many poor people it is near impossible to afford a college education if they can barely afford to pay for their essentials. Unfortunately, without a college degree it can be extremely difficult to get a better job with a higher paying job that would allow them to save money. On top of this, those without degrees have a much harder time earning a raise in the jobs they do have.

Bad Credit

Almost every poor person has credit problems due to a mixture of not having enough credit and making late payments. This causes many problems that lead poor people to not be able to save money. For instance, having bad credit makes it difficult to obtain a traditional loan with a reasonable interest rate, and so often poor people have to rely on other types of loans with much higher interest rates.

Health Problems

If you have been poor for a substantial amount of time then chances are you have health problems. This can be caused by a number of different things such as the high stress of living poor as well as eating too much processed food. Not only does having health problems make it more difficult to fulfill work duties, but it also may cause huge medical bills that make it near impossible to save money.

Unemployment

Those that have a higher education tend to get specialized occupations. On the other hand poor people who do not have a higher education can constantly find themselves unemployed or on the verge of losing their job due to their easy turnover rate. This makes it extremely difficult to save money, as being poor often means dealing with prolonged periods of time without a steady paycheck.

Higher Costs

As surprising as it is, the average poor person has substantially higher expenses per month as the average middle-class person. This is due to the fact that poor people often have to pay more for their common services, bills and living arrangements, which is caused by them often having lower credit scores and higher overall expenses mean less money being put in the bank for savings and so makes it much harder to save money if you are poor.

Easier Said than Done

Saving money when you are poor is more than just having money left over after paying all of your bills. It requires an understanding of your finances as well as major altercations in your life.