Being Poor is Expensive: 4 Tips to Help Escape Poverty

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It's true that being poor is expensive; tiny costs get proportionally huge the less you make. Learn some tips to escape the cycle of poverty here.

The United States is the richest country in the world. Yet there are nearly 40 million people living in poverty. 

The wealth gap has reached epic proportions. Simply put, not everyone is born with the same opportunities. There are ways to improve your finances and improve your surroundings.

Being poor is expensive. Keep reading to learn how to break the cycle and escape poverty.

"Stop Being Poor"

One Fox News commentator one suggested that poor people should just "stop being poor". Clearly, that's a crass statement. 

Millions are born into dire conditions. Others are born with a silver spoon and taught how to manage and acquire wealth from an early age.

Unless you hit the lotto, escaping poverty just isn't so simple. Here are four finance tips that are actually useful.

1. Save That Money

This is not what anyone wants to hear. A big part of acquiring financial relief is to stop throwing money away.

The first (and sometimes the most difficult) step is to take a good hard look in the mirror. The average American spends $1,200 a year on fast food. Taco Bell might seem like a good idea in a pinch but it adds up over time.

Avoid Hidden Costs

Sometimes, saving money isn't so clear cut and you need to spend more to save more.

For example, it might seem that buying one roll of toilet paper at a time is a bargain. However, the price per roll is much less if you buy a 12 or 24-pack.

Also, the subscription services, gas prices, and other things aren't cheap. You could be hemorrhaging money unnecessarily. It's time to run a tight ship. 

2. Social Benefit Programs

Remember, the squeaky wheel gets the oil. There are numerous federal government and state-run programs to help people get back on their feet.

The Supplemental Nutrition Assistance Program (SNAP) helps people pay the groceries they need. You don't have to break the bank to eat well. There are farmer's markets that give double value to SNAP dollars to promote local farmers.

Also, there are unemployment benefits, Medicaid, and other programs to help people under federal poverty guidelines.

3. Taking Care of Debt

Many people have a large amount of debt be it from credit cards, student loans, cars, or other things.

The first thing is to stop taking on more debt. The interest rates will sting you later. 

If you are trying to save money but are paying too much in fees, click here to learn about debt consolidation.

4. Advanced Topics

Once you get a little money saved up, what are you supposed to do with it? Should you be diversifying your bonds? What does that even mean?

Before that, you might want to boost your credit score. Consolidation loans for bad credit is a good way to back in good standing. 

Later, it's a good time to start thinking about investing. That's how you truly gain capital. It's good to talk to a trusted advisor or experienced friend to work out a good strategy for you.

Breaking the Cycle

You may have been dealt a bad hand. Or maybe you've made mistakes in the past.

It doesn't matter. There are ways to get out of the trap of being poor. It takes work and discipline but you can do it.

Interested in learning more? Visit our blog for more articles about money management and finance news.