Why Poor People Can't Afford To Save Money
Understanding the 'Boots Theory' of Socioeconomic Unfairness
This is why poor people can't afford to save money.
By Tom Huffman Dec. 01, 2021
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.
Terry Pratchett was an English fantasy writer, best known for his Discworld series of 41 novels. If you’re familiar with Pratchett's novels, you may recognize the "boots theory." If not, you better write off the next few months of your life as you're about to undertake some serious binge-reading.
What is the 'boots theory'?
The "boots theory" comes from a simple piece of dialogue in Pratchett’s 1993 novel Men at Arms. The book features a City Watch commander named Capt. Samuel Vimes. The captain is set to marry one of the richest women in the world, and he often opines about the differences between low-status and high-status spending habits.
At one point in the story, the captain ruminates:
The reason that the rich were so rich...was because they managed to spend less money.
In reference to the captain, the quote continues:
"Take boots, for example. He earned $38 a month plus allowances. A really good pair of leather boots cost $50. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about $10.
"Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.
"But the thing was that good boots lasted for years and years. A man who could afford $50 had a pair of boots that'd still be keeping his feet dry in 10 years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet."
This was Capt. Samuel Vimes' boots theory of socioeconomic unfairness.
The Boots Theory In Action
Pair of boots next to a desk on a carpeted floor.
The boots theory may seem obvious, but many people fall victim to its trap.
The wealthy, who have access to capital and disposable income, can make decisions with their money that leave them richer and better off.
To continue reading, please go to the original article here:
https://moneywise.com/managing-money/budgeting/boots-theory-of-socioeconomic-unfairness