8 Genius Things Poor People Know About Money That Rich People Don’t
8 Genius Things Poor People Know About Money That Rich People Don’t
Cindy Lamothe Mon, November 13, 2023
People with less means know a thing or two about stretching a dollar — something the rich may not fully understand. “Poor people are experts at finding ways to make the most out of their limited income,” said Ricardo Pina, personal finance expert and founder of The Modest Wallet. “They have learned to live frugally and make smart financial decisions in order to survive.”
“For instance, they know how and where to shop for the best deals, how to negotiate prices and how to find substitutes for expensive products,” he added. “All of these skills help them to stretch their budget and make ends meet without getting into debt.”
Although affluent individuals may possess greater financial security, those with fewer resources demonstrate valuable lessons in frugality and financial discipline through their resilience and practical money management skills. Below are some other genius things they know that others can learn a thing or two from.
Saving for a Rainy Day
According to Pina, poor people are aware of the importance of having savings for unexpected expenses.
“They know that life can be unpredictable, and having some money set aside for emergencies can prevent them from falling further into poverty.” He noted that this is something that rich people may overlook, as they have the financial means to handle unforeseen circumstances. “Poor people understand the value of even a small amount of savings and make it a priority to save whatever they can.”
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Living Within Your Means
“Another thing that poor people know about money is how to live within their means,” Pina explained, noting they are often accustomed to living with limited resources and have learned how to make the most out of what they have. “This includes cutting unnecessary expenses, prioritizing needs over wants and finding creative solutions to everyday problems.”
On the other hand, he noted that rich people may not have developed these skills, as they’re used to having an abundance of resources at their disposal.
The Power of Community and Support
“Poor people also understand the importance of community and how it can help them financially,” Pina continued. “They know how to rely on each other for support, whether it’s through sharing resources or providing a helping hand in times of need.”
He said this sense of community and support can greatly benefit their financial situation and provide them with opportunities that they may not have had otherwise.
Getting By With Little or No Money
There’s an upside to not having much, said Thomas Franklin, finance expert and CEO of BitInvestor, as it teaches you to cope and manage. “Those who’ve always had plenty may never grasp these survival techniques.”
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