The Vicious Cycle of Poverty

[cryptomaniac_xxx]

A person can never escape this cycle unless he/ she invests. Remember, you can't invest what you don't have or what you haven't saved. Saving is just as important too. Investments in one's education, health, finances, and so on, is what takes a person out of this cycle of poverty.

I agree of what you highlight here OP about the importance of investing. But let's not open the idea of people working with high paying jobs, they don't have to invest and that's the next thing for them to do on how they can escape poverty. They have the money and the management depends on them. It's true that saving and investing are important for a person to get out of poverty and people think that it's hard to do because it actually is. It requires a lot of patience and delayed gratitude for people to reach that and get out of the rat race.

Anybody that want to escape from poverty must be ready to save money for investment. Majority of the millionaires we are seeing today have one time or the other save money for investment purposes. This is not a science rocket where a person will be looking for ways on how to save money. Poverty is not something everyone should be against but most time it is due to the poor ideas of a person without making sure they invest what they have so they can make money in the near future. It is better you are poor today and you are able to save money and find your way out of poverty.

But that it contradictory, how can someone save money when you are in poverty? Those millionaires are built differently, maybe they really have the money to invest in the beginning. Or if they don't have the money, maybe they have a benefactor.

So it's very hard for the poverty people to just turn back their lives and become self made millionaire. Unless you start a illegal business, just to be honest. But if you start with fair and square, gonna take a lot from you to succeed in life.

[rachael9385]

The key link is mindset and ego. Many people who lack a good education achieve success, some even dropping out of college to start their own businesses. We often see this in those who achieve financial freedom.

When discussing poverty, we also need to consider the area of ​​measurement. For example, you can't call me poor if you compare me to someone in a different location. Similarly, I can't call you rich; the comparison tool is your neighborhood or the area you live in.

When discussing poverty, the reason it's so difficult for people to escape is because there are different mindsets. Imagine living in a rural community and having plenty of meat and food preparation means you're considered rich in that environment.

Nobody really cares about your major, what you studied in school isn't going to pay up up every bill, this is the reason why most people drop out of school to run a business because getting a degree isn't really what guarantees success. Poverty is actually a mindset but it goes beyond that, its an action that speaks on a long run, this eventually shows up in everything you do as an individual, if you don't make a move you can't be rich

[SuperBitMan]

The key link is mindset and ego. Many people who lack a good education achieve success, some even dropping out of college to start their own businesses. We often see this in those who achieve financial freedom.

When discussing poverty, we also need to consider the area of ​​measurement. For example, you can't call me poor if you compare me to someone in a different location. Similarly, I can't call you rich; the comparison tool is your neighborhood or the area you live in.

When discussing poverty, the reason it's so difficult for people to escape is because there are different mindsets. Imagine living in a rural community and having plenty of meat and food preparation means you're considered rich in that environment.

Nobody really cares about your major, what you studied in school isn't going to pay up up every bill, this is the reason why most people drop out of school to run a business because getting a degree isn't really what guarantees success. Poverty is actually a mindset but it goes beyond that, its an action that speaks on a long run, this eventually shows up in everything you do as an individual, if you don't make a move you can't be rich

I don't agree with you totally, what you study in school can actually pay up your bills totally I know some set of people who are engineers and that is what they study in school and right now they are working in big oil company and they are being paid very well and they settle all their bill by themselves they even help people around them sometimes we try to make education have less value knowing fully well that education is very important in our society and it helps too, I'm not saying that everyone who are educated or who went to school are rich what I'm saying is that we have people who went to school who are very rich and also some who went to school that are poor, no matter any profession or anything people do in this life there are always people that will succeed in it and there are people that will not succeed in it but to be honest with you education is or can lead to success, if you went to school and you are educated you have more opportunity to succeed in life than someone who did not go to school or who is not educated leave it or take it that is the simple truth.

[justdimin]

I completely agree about patience. As for gratitude, I'm not so clear-cut on that point. To whom should I express it? Perhaps only to myself, since no one but me is taking any steps to escape poverty.

Do you know what's most dangerous about poverty and destitution? It's that people become accustomed to it and settle into it. They've already resigned themselves to it. That's truly terrifying.

No one should ever resign themselves to their circumstances, because if it takes hold, the effect will be a reluctance to work and a reluctance to rise up to improve and escape poverty. I prefer people who are willing to try, even without experience and with only basic knowledge, because such people will be far better off than those who simply resign themselves to their circumstances. And as for patience and gratitude for what we have now, I think it varies greatly from person to person because it depends on our own thinking.

The universe. That is the answer, there isn't a single entity that you will feel great about, that is not the point, you should feel great about what you accomplish and if you do, then you are not going to end up with a feeling of gratitude towards a single person or company or anything like that, it's the "universe" that you are going to feel great about.

If you do that, and feel hopeful and grateful, then you are going to be happy because it's always a nice feeling to show appreciation towards what you are feeling. As long as you do that, and not be thankful or beholden to anyone, but grateful for the life you have ,then you are going to feel better. This isn't a "must do" thing, it's a thing that helps you psychologically.

[Accardo]

I don't agree with you totally, what you study in school can actually pay up your bills totally I know some set of people who are engineers and that is what they study in school and right now they are working in big oil company and they are being paid very well and they settle all their bill by themselves they even help people around them sometimes we try to make education have less value knowing fully well that education is very important in our society and it helps too, I'm not saying that everyone who are educated or who went to school are rich what I'm saying is that we have people who went to school who are very rich and also some who went to school that are poor, no matter any profession or anything people do in this life there are always people that will succeed in it and there are people that will not succeed in it but to be honest with you education is or can lead to success, if you went to school and you are educated you have more opportunity to succeed in life than someone who did not go to school or who is not educated leave it or take it that is the simple truth.

That is it, all the graduates won't be financially successful, some would have a better marriage than the other, while others would chase talents and succeed there. Life is a wide road, no single path to success, School is good, it helps expose us to more like minds in the department. They're students who learnt great things in the campus and have built the bests apps in the world. A lot of college friends are the backbone of the internet we enjoy today. School isn't a waste, except for those who think so. There are multiple means of becoming a top guy in any industry by performing well academically.

[Synchronice]

OP, that's how life works. If you are lucky, you'll be born in a wealthy family or you'll be born with some kind of talent like Messi was born with football talent or in another case, you are born in a poor or middle class family and you have to work hard and be at the right time at the right place in order to succeed in life.

The 21 century shows clearly that even high rollers suffer from bad food, it affects the health of the poor and rich. Which are only 2 of the thousand different classes there are.

That's a good point. Rich people usually eat organic. I'm not rich but I also try to eat organic but I think that Organic is bullshit. I might be wrong but I feel like it's true. If I had lots of money, I would buy my own land and I would reap my own organic food and I would have my own organic farm of animals. Living in a village where less cars move and where everything is natural is so much better for our health.

[sana54210]

OP, that's how life works. If you are lucky, you'll be born in a wealthy family or you'll be born with some kind of talent like Messi was born with football talent or in another case, you are born in a poor or middle class family and you have to work hard and be at the right time at the right place in order to succeed in life.

Yeah, I agree still there are cases where people are born in poor families and got richer. Sure at the very top you are not really seeing at the very top, like Bill Gates or Elon Musk or Jeff Bezos didn't started from a poor family. But you can still go from a poor to some millionaire, that has happened before. I am sure that we are going to see something similar for people who do a good job at whatever they do.

There are plenty of doctors for example that started from poor families, became very good doctors, and now living a great life. That is the most important and obvious part, and can be great for people. If we can do that, then we are going to end up with great results for a lot of people. So keep grinding no matter what.

[WatChe]

Nobody really cares about your major, what you studied in school isn't going to pay up up every bill, this is the reason why most people drop out of school to run a business because getting a degree isn't really what guarantees success. Poverty is actually a mindset but it goes beyond that, its an action that speaks on a long run, this eventually shows up in everything you do as an individual, if you don't make a move you can't be rich

There is saying by Bill Gates that "If you are born poor, it's not your mistake. But if you die poor, it's your mistake". I do agree that poverty is a mindset and those who don't take necessary steps to get out of poverty remain it's inhabitants forever. If one is struggling with his financial matters then he has to plan a strategy today, so that his coming tomorrow is better then today. Thanks to this forum, we are now much aware of Bitcoin and other cryptos that can really help people in improving these financial conditions.   

[Mhizlove]

Let me strongly disagree with this notion. Poverty is not always a cycle that you get stuck in without an exit or escape. Poverty is a mindset in most cases where people get stuck in it because they don't want to change and they don't want to use their heads.

I come from a poor background and a poor childhood and I have pulled myself out of it simply by using my head. I'm not saying I am this wise guy with high IQ, just that I thought ahead and planned for my life. Now I live comfortably.

Let me give you a very recent example of how not using your head looks like. Just a couple of days ago I was talking to someone who was complaining about the economic situation and how they are working their asses off (he and his wife both) and at the end of the month they are left with no money. As we talked I learned that they are giving literally half their income (which is a high income to be clear) for rent!!! And I know for a fact that in the neighborhood they live in, they can get a much cheaper deal which would leave them with a lot more money at the end of the month instead of running out.
This is not a vicious poverty cycle that they are in, this is (and I don't like using this term) their own stupidity. Because with that income and with roughly 2 years of saving and investing they could actually begin working on purchasing their own apartment. But 2 years from now they will be poorer and having to pay more rent due to inflation!

That's the key. You have to work hard and wise, then you have to learn money management and save your money to make wise investments to further increase your wealth to continue improving your financial situation.
But instead what happens for most people is that they work hard but dumb. Then they waste the little money they earn and usually never make any investment. Finally they complain about being poor thinking it is a cycle they are caught in.

I will say that the vicious cycle is not all about having small or little money but about how people's struggles leads to another, for instance as was earlier said that a child born into poverty actually grows up with restricted access to good opportunities, education, healthcare and  that weak foundation results in low paying jobs and constant survival modes which makes their children inherit the same hardship and this cycle repeats all over.

This feels like unbroken chain because poverty loops back on itself which causes poor education that leads to poor income, poor income then leads to poor standard of living and poor standard of living builds more obstacles to progress. Gradually the cycle of poverty becomes  less about individuals effort and more on or about the burden of failed system.
 Though the cycle is undeniable but it's not breakable, indecence that with wise financial choices,right mindset and empowering institution like health care, education and also fair opportunities people can break free from it, poverty we all know can be handed like a chain or curse meanwhile it can be broken when both societies and individuals change their mindset and act smartly.

[Orpichukwu]

Often people talk about savings but can one save if you are not employed? If you don't have the capital to set up your business, can you start up any business?This thing call poverty is not very easy to defeat that's why only few percentage of the world population has been able to defeat it. Nobody wants to be poor, that's true, but what can one do when it seems that the ruling class are making it as their duty to keep the masses in poverty. They messaged up the economy and what you only make can barely take care of your immediate needs. At that point should you prioritize savings or survival? How many of us here will be comfortable saving in the bank when you or your child is dying of hunger?

In life some of us are more opportune than others, while some start from scratch and build up wealth more than those who have supporters. Everything is all about mindset and hard work accompanied by luck. If you don't have enough money to feed yourself, all you do is look for extra income. Instead of blaming the government for the high cost of living, it's not easy, but that's more helpful than spending all the time blaming groups that don't even care. Instead of looking for means to create and find solutions where others see a problem, problem solvers are doing very well in every place they find themselves.

[Josefjix]

Nobody really cares about your major, what you studied in school isn't going to pay up up every bill, this is the reason why most people drop out of school to run a business because getting a degree isn't really what guarantees success. Poverty is actually a mindset but it goes beyond that, its an action that speaks on a long run, this eventually shows up in everything you do as an individual, if you don't make a move you can't be rich

There is saying by Bill Gates that "If you are born poor, it's not your mistake. But if you die poor, it's your mistake". I do agree that poverty is a mindset and those who don't take necessary steps to get out of poverty remain it's inhabitants forever. If one is struggling with his financial matters then he has to plan a strategy today, so that his coming tomorrow is better then today. Thanks to this forum, we are now much aware of Bitcoin and other cryptos that can really help people in improving these financial conditions.   

Some poor children that has the energy of getting out of the poor lifestyle are limited by so many factors, some of them are uneducated, some of them do not have the amount to pay for a high income skills to learn, some of them do not have a phone or any devices to start doing any digital jobs.

What they get engaged in is doing menial jobs for survival, they find it difficult to even build, and they also get trapped in the same route like their parents.

What truly makes them successful is if they exhibit their true talent, gift like playing football, singing, arts, and others where a heavy sponsor or upliftment will certainly find them. That's how they truly break out of poor cycle.

[ancafe]

It is a macro economic phenomenon, but on individual basis, it could be seen in education, health, employment, and other aspect of a person's life. The vicious cycle of poverty simply says that, because a nation ( or person) is poor, it can't save. Because it can't save, it can't invest. Because it can't invest, it can't develop. Therefore, it remains poor and the cycle goes on and on until a change is made.

In education, a child from a low income family may have to drop out of school to support the family through farming and other menial jobs. He'll grow up, become poor, and increase the likelihood of his children struggling to go to school too.

Poverty remains a very difficult problem to overcome in most countries, and perhaps no one has been able to truly address it. Even in poor countries, education remains quite limited for children because their parents are more concerned with how they can help them earn money or simply lack the funds to provide a decent education for them. This problem is exacerbated by the lack of job opportunities as adults, leading them to become unemployed and unable to earn money.

This kind of life continues to revolve around the same conditions, so regeneration will continue in this condition, resulting in no significant change. The percentage of those able to escape the poverty line is likely lower, especially for those living in poor countries where access is still quite limited. This is an issue that needs to be addressed so that everyone can live a decent life, including education, equality, and so on.

[alastantiger]

There is saying by Bill Gates that "If you are born poor, it's not your mistake. But if you die poor, it's your mistake". I do agree that poverty is a mindset and those who don't take necessary steps to get out of poverty remain it's inhabitants forever. If one is struggling with his financial matters then he has to plan a strategy today, so that his coming tomorrow is better then today. Thanks to this forum, we are now much aware of Bitcoin and other cryptos that can really help people in improving these financial conditions.   

Not everybody has the same privilege to overcome poverty hence I don't think it's our fault if we die poor. We don't have equal opportunities to get out of poverty. We have the chances when it comes but what about if it doesn't come. Not everyone is fortunate to have the extra cash to invest into Bitcoin. Some people only have what's enough for their survival and some don't, they keep managing until they finally die. People like to make it sound like everyone was given the opportunity to escape poverty but they decided not to but to stay poor.

Nobody likes poverty, everybody wants to get rich but that's not possible as we'll always have those of different financial classes and that's how the world just is. Although we can try to make our situation better than majority but let us not act like everyone has the same opportunity because that isn't the reality. The world has never being fair and it'll always be that way.

[Yablee0]

Let me strongly disagree with this notion. Poverty is not always a cycle that you get stuck in without an exit or escape. Poverty is a mindset in most cases where people get stuck in it because they don't want to change and they don't want to use their heads.

I come from a poor background and a poor childhood and I have pulled myself out of it simply by using my head. I'm not saying I am this wise guy with high IQ, just that I thought ahead and planned for my life. Now I live comfortably.

Let me give you a very recent example of how not using your head looks like. Just a couple of days ago I was talking to someone who was complaining about the economic situation and how they are working their asses off (he and his wife both) and at the end of the month they are left with no money. As we talked I learned that they are giving literally half their income (which is a high income to be clear) for rent!!! And I know for a fact that in the neighborhood they live in, they can get a much cheaper deal which would leave them with a lot more money at the end of the month instead of running out.
This is not a vicious poverty cycle that they are in, this is (and I don't like using this term) their own stupidity. Because with that income and with roughly 2 years of saving and investing they could actually begin working on purchasing their own apartment. But 2 years from now they will be poorer and having to pay more rent due to inflation!

That's the key. You have to work hard and wise, then you have to learn money management and save your money to make wise investments to further increase your wealth to continue improving your financial situation.
But instead what happens for most people is that they work hard but dumb. Then they waste the little money they earn and usually never make any investment. Finally they complain about being poor thinking it is a cycle they are caught in.

You are very correct sir most times it's not always a circle or foundation but mindset of the person in question also play a crucial role in matters like this , as a matter of fact riches and wealth first manifested in your mind before it starts happening in real life, you most have  the skeletal vision of being rich in your mind and with just a little hard work towards that direction you see yourself going closer to your dreams.


As I am I do not believe in those idealogy that someone can be stocked up in perpetual poverty due to some poverty-stricken background or whatever, in as must as one need an opportunity too in shinning forth but it is still very important to be rich mentally, don't talk less or doubt your confidence because wealth and riches can also happen to anybody.

[libert19]

...

There is one important thing people miss, and it is how our environment shapes us and if it was one of poverty and negativity, you would have to put work in to break that pattern, if not you would subconsciously grow to reflect the reality you were exposed to.

Very well said! I don't think many realize that.  I have done behaviours to the detriment of myself in past, and I have become aware only recently that those were result of environment I was exposed to.

It's wild how conditioning influences one, and imo more than anything, this conditioning is what holds back a poor person from getting out of it.

[Shafique Baba]

There is saying by Bill Gates that "If you are born poor, it's not your mistake. But if you die poor, it's your mistake". I do agree that poverty is a mindset and those who don't take necessary steps to get out of poverty remain it's inhabitants forever. If one is struggling with his financial matters then he has to plan a strategy today, so that his coming tomorrow is better then today. Thanks to this forum, we are now much aware of Bitcoin and other cryptos that can really help people in improving these financial conditions.   

Not everybody has the same privilege to overcome poverty hence I don't think it's our fault if we die poor. We don't have equal opportunities to get out of poverty. We have the chances when it comes but what about if it doesn't come. Not everyone is fortunate to have the extra cash to invest into Bitcoin. Some people only have what's enough for their survival and some don't, they keep managing until they finally die. People like to make it sound like everyone was given the opportunity to escape poverty but they decided not to but to stay poor.

Nobody likes poverty, everybody wants to get rich but that's not possible as we'll always have those of different financial classes and that's how the world just is. Although we can try to make our situation better than majority but let us not act like everyone has the same opportunity because that isn't the reality. The world has never being fair and it'll always be that way.

Although not everyone wants to be poor. I agree that all of us not get equal opportunities. Not getting equal opportunities is  valid point. poverty is not result of personal effort it is result of  poor planning of govt  policies.Some people get best while other face struggle. In equality in opportunity is the cause of  wrong govt policies. That push the middle class toward poverty. Mostly govt give support to elite class. The distribution of resources is also unequal among the society. Govt give weak support to small businesses.Some how govt is responsible to creating gap between rich and poorer. Govt should utilize capital in such a way that it give benfit to the labour. Hence, my final judgment is remaining poor is not personal choice but other factors also involved in which environment of surrounding, policis of govt and unequal distribution of money.

[red4slash]

As I am I do not believe in those idealogy that someone can be stocked up in perpetual poverty due to some poverty-stricken background or whatever, in as must as one need an opportunity too in shinning forth but it is still very important to be rich mentally, don't talk less or doubt your confidence because wealth and riches can also happen to anybody.

Even if you don't believe it, believe it or not, as long as they have the same mindset, the same environment, and the same mentality, then in the end, when we are born into poverty, we will always be that way.

It is true that in the end there will be some people who will succeed in escaping from that condition. We often see people who are covered by the media or have books and are famous because of their condition, but they are only a handful of people who refuse to give up and continue to strive despite difficult environmental conditions. The rest are not many people who can get through that phase.

This does not mean that I support the phrase “the poor will remain poor” because, after all, we all hope to have better conditions, but in terms of the system, this cannot be realized because the benchmark for someone to be considered rich is when there are many poor people, and this will continue to happen.
Therefore, even though there may be one in a million who can survive and even turn their situation around, when we talk about poverty and those born into it, the majority will remain that way, and that is a fact we cannot change.

[Scarlett_23]

Only one's own desire to get prosperous takes one out of the cycle of poverty. When someone decides that he/she is going to break the cycle of poverty and starts a prosperous life then he/she does his/her best by doing things day and night even if he/she begins with no money at all. I know for someone who doesn't have money to buy basic things, it's going to be tough journey to break the bondage of poverty but I've seen such people with my own eyes and I can say that if someone decides to do something with complete discipline and will power than no one can stop such person.

The vicious cycle of poverty is the repetition of the same situation. That is, it is not only due to lack of money, it continues due to lack of education, health and income. However, many times this cycle can be broken with one's own efforts. If someone thinks that I will remain poor all my life, then neither his mentality nor his financial condition will change. But if someone thinks that he will break out of this cycle, then his morale is enough. Due to the quality of morale, he will try to change his fate by some action or the other. Through any action, he will start small and gradually save and later change his condition by investing little by little.

[uneng]

The cycle of poverty is always lurking around, if not by the own individual's mindset, it's through the burden of having a family who denies to share the same mindset of the one who wishes to leave the cycle, or the rats race. It's easier said than done when we talk about getting out this cycle. Many try, but not everyone manage to accomplish it. We never know how long it's going to take, the only thing I can say is to continue trying, doesn't matter how hard or impossible it looks to be right now.

There must be an exit, a light at the end of the tunnel, and sometimes key opportunities appear when we least expect, so just keep doing your part and the rest must come to you at some time.

[abhiseshakana]

The cycle of poverty is always lurking around, if not by the own individual's mindset, it's through the burden of having a family who denies to share the same mindset of the one who wishes to leave the cycle, or the rats race. It's easier said than done when we talk about getting out this cycle. Many try, but not everyone manage to accomplish it. We never know how long it's going to take, the only thing I can say is to continue trying, doesn't matter how hard or impossible it looks to be right now.

There must be an exit, a light at the end of the tunnel, and sometimes key opportunities appear when we least expect, so just keep doing your part and the rest must come to you at some time.

Poverty isn't just about a lack of money, but also about a mindset that never changes. This is why poverty tends to be inherited, and why some families never truly break out of its cycle.

Poverty is characterized by a small income that is used up for basic needs, zero savings, and no capital for growth. Consequently, families lack the capital base to escape stagnation. Low productivity due to limited skills means that the jobs taken are usually low-skilled and low-paying. Because there is no funding for training, the quality of work does not improve. As a result, they can only survive, not thrive. Then there's the consumption trap: when income increases slightly, consumption increases even faster. Often, this increase in income is offset or even outweighed by small lifestyle changes (buying a cell phone, going to a cafe, or watching a movie). Finally, there's limited access to capital and markets, due to a lack of collateral for loans, or if they do, they borrow from loan sharks with high interest rates. The goods and services produced struggle to compete due to weak quality, promotion, or weak networks.

The economic mindset of the poor is typically one of survival rather than growth, living in survival mode, focusing solely on eating today rather than on how to achieve a better tomorrow. This prevents them from thinking strategically about their finances. Poverty often causes stress and a desire to feel normal. So they buy small things for momentary happiness or engage in consumer behavior as emotional compensation. This is the paradox of poverty: small but frequent consumption unknowingly drains remaining productive funds. Poor people are not accustomed to long-term thinking, focusing on instant rewards rather than delayed gratification. For example, they prefer immediate cash over learning a new skill that will be useful six months from now, a phenomenon psychologically called time preference bias. Living in a similarly impoverished environment makes this habit considered normal, as there are no successful models around to emulate (the role model effect). People who try to change are often ridiculed, thus stifling mental innovation. The final mindset of the poor is a lack of financial literacy and economic self-reflection. They don't record expenses, don't know their priorities, and don't have financial targets. As a result, money seems to come and go.

This is mostly my personal experience when teaching my wife a frugal lifestyle.