Living from paycheck to paycheck is its own greatest expense.
Living in a persistent state of urgency forces one to opt for the most expensive, least efficient options.
This form of poverty does not just apply to those who we usually consider poor. Those with trappings of middle class or even luxury frequently live in a similar state of desperation.
-Forced to buy in micro-quantities and convenience portions
Making large, judicious purchases is the best way to maximize bang for buck. Buying in small individually packaged portions is the least efficient way to make purchases. This is just what the poor must do. Living from day to day, week to week, they don’t have the luxury of buying outside the moment. They must pay the highest possible prices for each item.
-Forced to pay off interest
What is interest but the purchase of money one doesn’t actually have?
The greater the lack of money, the greater the lack of it costs.
In a state of poverty, even the slightest of mishaps forces one to rely on the purchase of non-existent cash. It might make tomorrow even more difficult to survive, but what does it matter if one has to get through today first?
-Forced to constantly replace or repair low quality merchandise
Purchasing for the day means paying more in the long run as a whole collection of shoddy merchandise constantly breaks down and expires.
The expenses incurred by a steady stream of emergency driven purchases preclude ever getting ahead.
-Forced to pay for health care that wouldn’t have been necessary without the poor nutrition, lack of time for exercise, and chronic stress inflicted by poverty.
With no means of tending to one’s wellbeing and living in a state of powerlessness, one ends up faced with enormous expenses wealthier persons can avoid through healthier more fulfilling lifestyles. Just one collapse in health can create yet another set of expenses for hospital bills or prescription medications. The cost of poverty rises that much higher.
-Forced to deal entirely in steadily inflating liquid assets.
Economies are kept burning through steady increase in the money supply. The value of liquid assets has nowhere to go but down in the long run. New minimum wages are set only when they can no longer possibly be avoided. Largely static wages for low end jobs spend years declining in purchasing power until an already tight situation becomes untenable.
-Deprived of Free Capital and Time To Invest
The immediate needs of survival preclude the accumulation of any additional assets whatsoever. Investments, acquisition of new skills become impossible. The money necessary to get money is never available.