by Melinda Barr

Created on: March 28, 2009   Last Updated: April 07, 2009

Poverty hurts. It is physically and emotionally draining and many people give up in frustration and hopelessness. Many people live this sad lifestyle without ever taking the first steps to end the cycle. Poverty often cycles through generation after generation. It can rob us of our self-esteem and diminish us with feelings of shame.

While we cannot all be rich, we can all learn how to live within our means. Developing a healthy mind set can be a good first start to teach yourself how to do this. There are really two main components to success.

Wants vs. needs

Face reality first. Each generation becomes a more "me" oriented group with absolute belief in the validity of their right to ownership at any cost. Many basic needs get pushed aside in favor of "wants". We want to have the best we can possibly have with no regard to consequences and costs. We need to return to our roots and forego the luxuries and benefits that hinder our ability to save money.

We do not need designer clothing, or newer cars or even the best cut of steak to lead happy, productive lives. Reexamining your daily expenditures is an important step. Even that daily cup of coffee purchased at your local coffee shop becomes an unnecessary expense. We are a credit driven society with the result of an increased debt load and this needs to stop.

As our economy continues to plunge, we need to try harder each day to cut corners and reassess our basic needs. We need food, water, and shelter, first and foremost. Everything else becomes a luxury until we have eliminated our debt load. It is a long and often discouraging journey to begin to clear our debt but the result is very much worth the struggle through it.

Savings First Always

Pay yourself first! Almost every economist or financial advisor has repeated this ad nauseam and yet still many fail to see the significance of this point. In previous generations this "rainy day fund" was utilized to offset any unplanned expense that may pop up when it is least expected. Today it is often common for people to live beyond their means with no thought of the future. Families need to find a way to put aside at least a tiny portion of their monthly income. Even ten dollars a month can add up over time.

Many of us are more than familiar with coupon cutting and bargain store shopping. However, all too often, we give in to the instant gratification of acquiring something we truly do not need. This frequently leads to what should be termed credit card abuse. With no savings, you have no recourse but to utilize the full maximum allowable on credit. This only leads to further financial problems as the already overwhelmed consumer sinks further in debt.

Often a clear hard look at our values is the first step toward stopping the cycle of poverty. Letting go of what we think we need and getting back to basics is a great place to start. Without taking this first step, you will be unable to forge ahead and break free of poverty.

Poverty itself is a very difficult place to be. Fighting your way beyond poverty can also be a difficult journey. Everyone deserves to be free from the heartbreak of poverty.

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