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They should read things like YNAB: http://www.youneedabudget.com http://www.youneedabudget.com It is amazing how much money one has when one exercises restrai

by ryao 11y ago

They should read things like YNAB: http://www.youneedabudget.com http://www.youneedabudget.com It is amazing how much money one has when one exercises restraint when spending it.

vidarh 11y ago
Budgets rapidly break down when you're regularly faced with unforeseen but necessary expenses that blow your cash reserves out of the water. A lot of the problems of poverty is that once you get below a certain level, even if you are the most thrifty person around, you lose predictability in ways that end up costing you a lot of extra money. Suddenly your employer pays you a day late and your carefully arranged bill payment schedule goes out the window and you get charged extra fees, or your car that you depend on to keep your job breaks down and you're forced into ridiculously high interest credit.
- ryao 11y ago
  The purpose of trying to budget is to stop living from paycheck to paycheck. There might be some people for which this will not work, but the ones leasing new cars every few years (or signing overpriced contracts because of the "free" phone every two years) are not among them. I am sure that many people in such circumstances could find little things that could be cut if they looked (e.g. Cable TV, the landline phone, etcetera). Such things add up. I have been applying such things to my parents' budget. Just the other day I heard from my mother that she no longer worries when unexpected medical expenses come up because she has found that the savings that my suggestions made more than paid for it. She gets TV for free OTA, replaced her expensive landline with free VoIP through Google Voice using an Obihai ATA, has lower electrical consumption (from various things, but the simplest being putting a lid on the frying pan to reduce evaporative heat loss, which is an efficiency improvement that allows food to cook faster), has a promotional rate for the newspaper she insists on having, has cell phone service that has no monthly fee (through ring plus), obtains heating oil at COD pricing, etcetera. Such things add to a four figure amount each year.
  - vidarh 11y ago
    People leasing cars are not who I am talking about - they are not poor. If you are poor you don't get approved for credit to lease cars. At least my definition of poor draws the line well below that point.
    - ryao 11y ago
      I know of poor people in India who lack the ability to get jobs due to disabilities. They either have never had a job to be able to have a pay check or had jobs before they became disabled and are unlikely to see a pay check ever again. I know of a few instances of abject poverty in India through a priest I know. In one instance, the sole provider of a household developed a medical condition that rendered him unemployable. In another instance, people at a shelter for the physically and mentally disabled lack things like wheel chairs and bedding, with some of them just lying on the floor. In both cases, I know people are sending money to help them. That is especially true in the case of that household in a poor village where the father is a disabled craftsman while the mother is completely uneducated. Enabling the children to study will give them the opportunity to work for a better life, which is an opportunity that their parents will never have. Anyone who has a paycheck has the opportunity to obtain financial advice from sites like YNAB. Not all such people live as they would like, but being able to imagine something better puts them in a whole different category than actual poor people. They are able to make financial decisions and save for the purpose of making their lives better in the future. The truly poor lack such luxury.

by ryao 11y ago

They should read things like YNAB: http://www.youneedabudget.com http://www.youneedabudget.com It is amazing how much money one has when one exercises restraint when spending it.

vidarh 11y ago

Budgets rapidly break down when you're regularly faced with unforeseen but necessary expenses that blow your cash reserves out of the water. A lot of the problems of poverty is that once you get below a certain level, even if you are the most thrifty person around, you lose predictability in ways that end up costing you a lot of extra money. Suddenly your employer pays you a day late and your carefully arranged bill payment schedule goes out the window and you get charged extra fees, or your car that you depend on to keep your job breaks down and you're forced into ridiculously high interest credit.

ryao 11y ago
The purpose of trying to budget is to stop living from paycheck to paycheck. There might be some people for which this will not work, but the ones leasing new cars every few years (or signing overpriced contracts because of the "free" phone every two years) are not among them. I am sure that many people in such circumstances could find little things that could be cut if they looked (e.g. Cable TV, the landline phone, etcetera). Such things add up. I have been applying such things to my parents' budget. Just the other day I heard from my mother that she no longer worries when unexpected medical expenses come up because she has found that the savings that my suggestions made more than paid for it. She gets TV for free OTA, replaced her expensive landline with free VoIP through Google Voice using an Obihai ATA, has lower electrical consumption (from various things, but the simplest being putting a lid on the frying pan to reduce evaporative heat loss, which is an efficiency improvement that allows food to cook faster), has a promotional rate for the newspaper she insists on having, has cell phone service that has no monthly fee (through ring plus), obtains heating oil at COD pricing, etcetera. Such things add to a four figure amount each year.
- vidarh 11y ago
  People leasing cars are not who I am talking about - they are not poor. If you are poor you don't get approved for credit to lease cars. At least my definition of poor draws the line well below that point.
  - ryao 11y ago
    I know of poor people in India who lack the ability to get jobs due to disabilities. They either have never had a job to be able to have a pay check or had jobs before they became disabled and are unlikely to see a pay check ever again. I know of a few instances of abject poverty in India through a priest I know. In one instance, the sole provider of a household developed a medical condition that rendered him unemployable. In another instance, people at a shelter for the physically and mentally disabled lack things like wheel chairs and bedding, with some of them just lying on the floor. In both cases, I know people are sending money to help them. That is especially true in the case of that household in a poor village where the father is a disabled craftsman while the mother is completely uneducated. Enabling the children to study will give them the opportunity to work for a better life, which is an opportunity that their parents will never have. Anyone who has a paycheck has the opportunity to obtain financial advice from sites like YNAB. Not all such people live as they would like, but being able to imagine something better puts them in a whole different category than actual poor people. They are able to make financial decisions and save for the purpose of making their lives better in the future. The truly poor lack such luxury.