Unnecessary spending has become a bad habit in our community. People want to show off how rich they are. They think this shows their capability and ability to do whatever they want, but they end up in debt and broke. If your monthly expense is $40,000, then you need to have sources that can bear this consumption rate. People wanted to spend money on fancy things until their pockets were empty.
It almost depends on person affordability as poor people will never choose to buy branded clothes and shoes and they have faced problems therefore they never buy unnecessary things which just cause money wasting.
Whereas those who have lots of money will show themselves wealthy and they thing that there is difference of only branded clothes and shoes between wealthy and poor people which is not true because there are lots of wealthy individuals who use their money with planning and never waste any amount in those materials which they don't need.
We should reduce our expenses because if wo don't eliminate the Babbitt of using money more than our earning then one day we will have no money and will be in search of opportunity to at least earn to cover food expenses.
Then you won't believe me if I say poor people do the stupidest thing when they get some extra money. Do you ever think of why poor people remain poor when rich people increase their wealth every second?
When poor people got some fortune and some extra cash they got it hand they tried to fulfill their desire. Some wanted to go to a fancy restaurant, purchasing something that is liability, buy some new clothes, decorate their home etc. None of this can generate money for them when that money can be invested in some assets. Rich people buy assets and let those assets pay for their desires.
This is not because poor people do not want to increase their income. Their lack of knowledge and fear of investment made them do these things.
Poor people lack knowledge on investment and they were agonizing to have something which they've never experienced in life. This is why they just spend here and there and end up with nothing left. Through education this can be easily solved.
Another thing when we talk of poor people, there are people who aren't able to feed themselves for three times a day. With them how to suggest investment. What is more important itself isn't available and in that situation talking of next level of living is really unfair.
First of all savings needs to be encouraged. The education need to be provided on investment and other ways of making the savings better. This is how we can help with betterment of the poor people. Not everyone were able to follow it which is the hard reality.