The biggest difference is in spending distribution. Poorer people will spend a far greater percentage of their income on staples like food, rent, utilities, and insurance. Wealthier people have the luxury of not having to spend a large portion of income on basic amenities. Poorer people also put a smaller percentage of their income into future savings than do rich people, because their lower incomes require them to live a paycheck-to-paycheck lifestyle rather than thinking about setting money aside for the future.
Another interesting thing to note is what happens when some poorer people happen upon a windfall. On the surface this is a good thing. It’s more money coming in, which is a good start to getting out of poverty. On the other hand, many people living near or below the poverty line have never had the experience of saving money, simply because there isn’t generally enough of it around to save. So, when a poorer family happens upon a large sum of money, it often proves to be unhelpful because that money gets spent immediately (sometimes on frivolous or useless things) instead of being put into a savings fund.
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