An upper income person can go into a store and buy expensive shoes on sale say, $80 dollar shoes for $50. A poor person goes into the store and buys the same pair of shoes on the same day for $150.

How is that possible?

Well, in the first case, the Upper income person pays cash for the purchase. Fifty dollars paid for a fifty dollar tab.

The Poor person uses a credit card, bank or store, to purchase the shoes in the too-good-to-pass-up sale. If for some reason the balance were low enough on the card and the poor person had enough cash on hand at the end of the month, they could pay off the shoes the next month.

The problem is most of low income people rarely have large amounts of cash when the bills come due. They are often in possession of two or more credit cards, so easy to get these days.

Unfortunately, the credit cards have a habit of growing to their credit limit. The card issuer charges interest on the balance owed. In addition, they tack on finance charges and if you miss a payment, late fees add to the next months balance.

That is the trap of poverty. Our consumer system promotes debt and if your income is already low it creates a hole from which there is no escape - or is there?

The truth is there are two types of poverty; temporary and pervasive (long term). The way out of both is the same. The person with a low income needs to live below their means long enough to eliminate their debts.

That's hard to do when you don't have much to begin with. I was down to MINUS FIVE Dollars per month when I was going through my divorce! I'm not the only one to have experienced bone-crushing poverty at some time in my life either. You discover you can live on very little if you have to.

Food, clothing and shelter, these are the three basic necessities of life. A frugal and wise can find plenty of low cost sources for each.

The key is to avoid unnecessary expenses. Shop at the bargain barn and dollar stores. The products are generic quality (or less) but much easier on the budget.

You probably don't need a cellular phone but if you do, get one with a prepay plan to avoid another bill.

Decent quality clothes can be found at the second hand stores. Gone are the days of racks of smelly, out-moded clothes. now some decent clothing can be found at the DAV, the ASPCA or any of the local thrift stores.

Of course, nothing comes for free. You need to secure a source of income to buy your way out of poverty. There are sources of government assistance, welfare office, and food stamps. The key is to focus on the goal of not remaining poor.

The better goal is to have useful skill, something someone would be willing to pay you to do. There are trade programs that will teach you reading, writing, filing and basic computer skills. With that you can find a decent wage and stop being low income.

Learn more about this author, Morgan Johnson.
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