Key Ways People On A Limited Income Stay Afloat
There are millions of people in America right now, struggling on a limited income. Every day, they struggle to make ends meet in what is often a dire situation. Many don’t have a stable income so they cannot afford to rely on their next paycheck. This often rules out the possibility of borrowing money. As well as this, some live on benefits that are nowhere near enough to provide a good quality of life. An estimated 45 percent of people living with disabilities do not receive enough money to pay for basic needs such as food and clothing. Here are some of the ways these individuals stretch their finances further and continue to survive.
Credit Cards
Plastic is fantastic for these individuals because they have no other option but to borrow what they can not afford. Many build up large debts on credit cards to the point where they have no hope of paying them off. These debts could range in the thousands. It was this type of spending behavior the was responsible for the disastrous outcome of the housing marketing collapse in 2008. People continuously live on credit because they have no other option. Without credit purchases, a lot of people simply wouldn’t be able to afford living costs.
Gambling
Lottery tickets are typically bought by low-income houses. They are forever hopeful that they will one day receive their big break. That they can get the riches and the quality lifestyle that other people seem to obtain so easily. It’s not just the lottery either. Many poor income households rely on the money that they make from gambling such as horse racing. The horse racing best bets can be enough to triple or even quadruple what the average family earns through the week. Although wins may be rare, the money is often more than enough to tide them over until next month.
Savings
Economic experts recommend that you attempt to save as much as a quarter of your earnings each month. Particularly, after you start earning money on a contract in a stable career. Unfortunately, most working class families do not make enough money to save any at all. In fact, they often retire with very little money in the bank to pay for their pension. At the minute, this is not a major problem due to the provision of a state pension. However, social security is not going to last forever. In the coming years, the government might struggle to fit it into their budget. At that point, no private pension could put people in a catastrophic situation.
Smart Spending
Finally, low-income families need to be careful about making any purchases. Even the weekly shop is often approached with great caution to keep spending within the budget. These families often do everything they can to avoid having to take out a loan. In many cases this does work and despite the odds being against them, they avoid the debt cycle.
It’s clear then that low-income families must take extreme measures including no saving, to stay afloat.
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