Financial Advice For The Poor

The reality is that most people live from one salary to another. And yes, if they quit smoking or alcohol, they might have some money left over at the end of the month, but that’s not how the brain works. We are animals that function like that anthological donkey, with the stick and the carrot.

  • lack of empathy
  • the assumption that everyone has something to put money aside
  • the assumption that people know exactly what the value of their work is ( newsflash : no, I don’t know how to sell and I don’t know how to quantify the value of their work)
  • the assumption that when you start a business, you do it with someone else’s money, not from your own savings, that your capital falls from the sky
  • the assumption that everyone is Mafalda and will know exactly when a pandemic will come, so your business model is stupid from the start


But this is the ideal situation for a man who plays in the middle league, not in the small league, in competition with the unemployed or in the big league, in competition with millionaires. And here comes this part with a basic understanding of how we operate, in which we want to be rewarded for what we do or simply for who we are.

The cultural context

And in most cases, from the respective cultural context you learn that you cannot exceed your condition. One that imprints a mentality of being content with a little, another that, after repeated failures in trying to overcome your condition, you end up being convinced yourself that you can’t do more or, worse, that you don’t deserve it.

It’s like in the case of people who want to lose weight: they go to a personal trainer, and he tells them that they will see results in three months. The mind stops at “you will see results”, and after the first month it gives up because the results are not seen.

Instant gratification

We are not used to making plans in general, and the lack of planning experience leads to the inability to make a mental projection of the result (the carrot) at a certain point in time. Especially since we are used to instant gratification and especially in the absence of a financial education.

The phrase ” money for money pulls and lice for lice ” is fixed about this: models – mainly family – money management. I think that 95% of my acquaintances who made more money than me (much more, that is) come from families where at least one of the parents was an entrepreneur (employer, businessman, it doesn’t matter).

And one more thing: you find empathy more often in poor people than in those with money. A poor person will not start selling children’s clothes and toys on OLX / forums as they grow up – or the stroller – but will pass them on to someone else. Someone with money will sell them to recoup their investment (example seen first hand, in the circle of loved ones). In a poor community, you see mutual help more often.