I will like to reiterate again as I did before that people are poor because of their mindsets. You cannot help someone beyond the level of his thinking.
Poverty isn't just the absence of money, it is the inability of the mind to function as a problem solver. Poor people are first poor in their thinking before they are in their pockets, wallets or bank accounts.
If you want tot help a poor man,the best solution is not to give him money , it is to help him have a change of mindset.
Poverty is a mindset just as prosperity is a mindset.
People are rich today not because they were born in rich homes but because they have had their mindset framed to think in a particular way. Rich people have found the best way to provide solution to a pressing problem and get rewarded for doing so.
Money is a reward for providing solution.
If you have found the solution to the problem of a people, you have found a way to make money. People will always pay to have their problems go away.
Also, prosperity is the reward for right prediction. Many of those who control large chunks of the money in circulation got to their point because they were able to predict the trends of things, able to read the signs and made plans, investment accordingly.
So, here you have it, the most common problem of poor people is their mentality.
The number one reason is bad decision-making.
In today's world, you simply can't afford to be financially illiterate. You have to understand how money works, and how the economics affect your net worth. The average poor person does not go into detail understanding about assets and liabilities and this is reflected in decision-making.
You can't blame a poor person for starting off poor. But if 3 years, 5 years and 10 years go by and the person is still poor, that is on him/her. It shows the person has not taken any steps to improve the condition of lifestyle. Whether it's gaining education, or working really hard to save up and not spend money in unnecessary expenses, there are ways to escape the poverty curse.
Very few poor people become rich. It is a fact that they don't get the same opportunities offered to them as a rich person would.
Most things cost money to do anything. If you have a great idea but don't have the money to see it through your idea means nothing. When we grew up we didn't have money and when things started looking up something always happened to put your right back where you started.
It is a mindset that you need to overcome. You are not inferior to everyone else but just have a few more extra obstacles in your way. This sometimes inspires one to do more to succeed and pull themselves up.
A rich person will see an opportunity to make money from something, normally you need money to make money. A poor person could be shown the same opportunity but will see something else entirely.
Most poor people who make it never lose their fortunes as they have tasted both sides and know what it is like to be poor. These people have so much drive and determination and a positive mindset.
Lack of self awareness in the system they are trying to adapt to. This is the root of economic disparity as the rich have all their questions that are important for their maintaining their wealth the poor are manipulated in willing/unwilling daily routines that keep them there. More education/understanding of how the world actually works versus how it should work would do the poor of the world wonders.
I think this is a good question that I would love to answer. I love to answer any questions that are related to finance and the future of mankind. Well, there are many reasons why a person can be poor throughout their life.
1. Living too comfortably and not being able to step out of their comfort zone
Many people graduate from university or colleges or school and they just feel that it's safe to constantly work throughout their lives and collect paycheck after paycheck for the rest of their life. These kinds of individuals usually spend all their savings and never have thought of what their future would be in the next decade or more as it is not easy for them to part from any instant gratification. One day, when the whole world changes and their talents become obsolete or even when their company doesn't do well financially and the company starts to sack it's employees, these employees would find it hard to go anywhere.
Some people upon graduation, or those who have good education doesn't seek the help of others as they usually think that they are the smartest in the world. The power to get rich is to have lots of good networks which can be a leverage to get things done quickly and fast. Imagine one ant, it is powerless, imagine what one million ants could do. Mark Zukerberg isn't rich as a solo person but because of the thousands of active users that support the facebook platform.
Those who are egoistic usually doesn't like to learn new things. There are many new things that are happening in the world every single day and the best bet is that everyone should be lifelong learners and constantly take their time to learn new things all the time throughout their life.
3. Lack of physical exercise
Many people have failed do to alot of exercises as they are constantly busy working throughout their lifes. What if one day, they got sick and then what have they gained from all those hardwork that they have spent their whole life doing. The boss isn't going to look at loyalty. Once the employee has health problems, then the boss would just find a replacement. It is important to get some body workouts to make sure that the body can stay healthy. A healthy body is a wealth generator. Lack of exercise also equates less energy.
There are more reasons why a person won't be rich and remain poor their whole lifes but these are some.
Trrying to keep up with the Jones. People always want to have the nice things their neighbors have but then they overspend and come up short on money because they do not budget their money.
Not realizing the importance of living bellow their means and not realizing how important it is to save a % of your income.
Let's face it, saving 10% of your income it's not going to make you rich in a short amount of time. But living paycheck to paycheck and setting nothing aside will sure as hell keep you poor forever.