Being poor is expensive. There are many expenses that low and middle-income people have that completely baffle upper-class folks. Why spend money that way, or why waste money with this thing? We hope this article sheds light on these questions.
Cigarettes
Tobacco is a huge money sink, as any smoker knows all too well. At an average of $10 a pack, it’s easy to waste lots of money puffing away like a chimney. What upper-class people fail to understand is the propensity of low-income people to take the edge off with something, even if it costs more than they should be spending. Temporary relief is worth the money to many people.
Payday Loans
When you’re poor, even money gets more expensive. Short on cash but still need to keep a roof over your head? A payday loan may fill the gap perfectly. While, in principle, they may have proper use cases, they are often predatory and overcharge people for temporary financial relief.
Rideshare Apps
It’s expensive to get around without a car. Suppose you can’t afford to save up a lump sum and have poor credit (like many low-income people). In that case, you may have no option but to spend increasingly large amounts on rideshares. While convenient, Ubering to and from adds up quickly.
Beer
Cigarettes, beer, and other cheap alcohol are a great temporary bandage for the ills of poverty. Bummed out because you’re you’re broke? Have a beer to take the edge off. It’s a vicious cycle that the poor fall into all too quickly.
New Tech Gadgets
It’s nice to have nice things. Everybody likes having stuff that functions well and that you don’t have to worry about becoming outdated. Furthermore, people with very little often cling to one or two high-quality possessions as aspirational belonging- one day, all their stuff may be as lovely as that new Apple Watch they just bought on credit.
Rent-to-Own Product
Companies like Aaron’s have built a fortune off the backs of people who want to have halfway decent things but can’t afford to buy their items outright. People experiencing poverty can afford a higher standard of living by paying an inflated rate over an extended period. Despite the convenience of the arrangement, it is a waste of money in the eyes of people who can afford the retail price for their big purchases.
Credit Card Debt
Putting things on credit- like that Apple Watch you’ve been showing off- creates a huge burden that wealthy folks don’t have to deal with. Since they can buy their shiny new toys outright, paying a percentage rate in the dozens rather than simply not buying something seems absurd.
Processed Food
Does anyone actually like hot dogs? What about Spam? Bologna? Processed meat and other Processed foods are often cheap alternatives that people experiencing poverty can afford. They want to eat something different than junk; they just can’t come up with the money to buy organic food at Whole Foods.
Out-of-Pocket Healthcare
Again, being poor is expensive. Too broke to cover your health insurance premiums? Wait until you see the bill when you have to visit a doctor. When you have enough money to cover your health, it may not occur to you how big a trap poverty is. Healthcare is one of the most significant contributing factors to poverty in America.
Fast Food
When you’re working two jobs to make ends meet, and so is your partner, there’s only a little free time to feed your kids, much less yourself. Fast food may be a wasteful expense and terrible for you, but it puts something in your gut fast, just like it promises to. People with the luxury of time to cook may not get it, but plenty of working-class folks do.
Gambling
Haven’t you ever daydreamed about winning the lottery? We’ve all thought through what we’d do with unlimited resources, but there’s a much stronger appeal for those of us with the least. Money for nothing more than guessing, right? Okay, that sounds like a plan. Risking a few dollars here and there for a shot at never having to worry again appeals to many lower and middle-class people.
Unnecessary Subscription Services
Credit repair companies, bill elimination services, and many other subscription companies fulfill the needs of people who are too tired to handle certain things themselves or need more resources to reach the same end via a more significant, one-time expense.
Designer Clothing
Like new gadgets, having designer clothes is often a sign of good things anticipated, however far away that future may be. Having one sharp pair of shoes or a particularly chic dress may seem like an unnecessary expense. Still, everyone wants to look good, at least sometimes.
Impulse Buying
Even people who buy impulsively have difficulty explaining why they do it. Maybe it’s something to do with wanting to feel as though your needs are met, regardless of how valid a particular “”need”” may be. Furthermore, many stores set up impulse buy displays to entice people with little willpower into blowing their hard-earned money on snacks, drinks, magazines, and other things nobody needs.