Earlier quoted context omitted.
It is a similar situation with buying a car for $500 that will require lots of repairs vs. a more expensive car that will give you a lower cost per mile. While this does add some drag, in most of the situations I've actually seen, it isn't the main barrier to getting out of poverty. The main barrier seems to be a culture or mindset that prioritizes short term benefit/feelings over long term benefits even when there a…
The main barrier to poverty is that there is a statistically almost no way to meaningfully save up enough money to get out of poverty, by onesself, just by forgoing anything that doesn't contribute directly to food and shelter . Literally: what is the point of saving up 5$/wk? That's less than 300$ by the year. What can you realistically do to get yourself out of poverty for a one-time payment of 300$? You can't even…
People who don't have thay ability make mistakes when emergencies inevitably come around.
Those 10$ a week after a year is enough to make up a small car repair, or problem with your paycheck.
Just last year I had an issue where my paycheck was short 1000$, because I wasn't spending everything as it came in, it wasn't a problem. I had a big enough buffer in income and emergency funds to make up for it.
If it had happened to my colleague who doesn't save up, he would have had to get a payday loan to put food on his families table.
That's how people stay poor.