How poverty changes your mindset

See perspective:: http://www.templetons.com/brad/billg.html

Wealth and safety nets give families chances where those in poverty can't afford to take. "Move across the country and change jobs or risk dying of starvation with your family in the car because once you got there the job's gone" "Spend all your savings going to college at the expense of your kids when there are no jobs right now" "It'll cost hundreds of thousands for chemotherapy but on average patients with your diagnosis get 3 more years typically of life"... these are called risks. The wealthy get more rewards because they can afford more risks. Most who are in poverty are in poverty because they themselves or their family could not afford the risk. If those who are high lend a hand it could help immensely.

I am lucky having grown up in a middle class family. My father also grew up in poverty and it affected me as well. He was able to provide for us bery well but the specter of being poor was burned into my psyche to an extremely unhealthy level. It lead to a decade of fear and broken relationships because I was so paranoid about losing my money and my livelihood.

Now the combined income of my wife and I make us easy 1%ers and my perceptions of money have changed again. Instead of saving every penny we made smart financial decisions, like buying a house that was very affordable instead of getting as big a house as we could pay for. I’m reasonably comfortable that I will have a job until I retire and I’m very sure my wife will. This allows us the luxury of spending money on things that we never would have, like nannies and cleaners, and traveling business class instead of economy.

It’s something I never, ever, would have considered 20 years ago. When I was scared about money in my 20s and early 30s (never living in poverty,though) I felt vulnerable and that I could “fail”. Going through the dotcom bust reinforced these feelings to the point where I went to the hospital several times due to anxiety attacks. I felt like this wouldn’t last and “winter was coming” so I saved every penny and even ended relationships over money.

After a particularly bad breakup I realized I had a problem. My mindset now is I can always make more money if I lose my job. It might have to be something unpleasant but it can happen. I’m not wasteful with money but I don’t obsess over it anymore. I’m grateful for being in this position obviously, because all it takes is a really bad recession for things to get really bad. Aside from a couple of perks, like the cleaners and nannies, I generally save most of my money for “winter”. It’s a position that, as I said, I’m grateful having. I have friends who aren’t in the same position, and our mindsets in life are completely different.

In my families historical situation the big issue is you're poor because of debts. You can't move because you're stuck in a mortgage or farm loan. You can't go to college because you owe money. You can't better yourself without help from the outside essentially. Imagine owing 2k+ a month but only making 1800 for a few years that will drain your savings.. imagine then it gets worse and worse and eventually you get laid off.

Being upside down causes the blood to go to your brain and like the article implies makes some people continue to make bad decisions. Say you get out of being upside down for just a small time you then rationalize spending over what you were like before because you think your ship finally came in... but in today's society that can change in a heartbeat.