But how would you go about doing that since the reason for the lack of investment of the poor and middle classes seems to be due to not their income level but rather their budgeting?
I think that the word “budgeting” is over-used.
Budgeting
implies … or suggests …
planned spending.
But my observation has been that most spending by individuals is **not **planned.
Most spending is impulse. And “frivolous” … [Starbucks?] *
I can’t and have no right to tell other people how to spend their money.
But if they buy cigarettes and soda and expensive sneakers and jeans, then I don’t want to hear complaints about they have no money.
Everybody’s money is limited. Where they spend it is their free choice. I have friends who cry poor mouth, but have extremely expensive hobbies.
I have friends who get free medical care … the best, actually, at the clinic side of hospitals. But they didn’t like having to wait around. So, although poor, they came up with money for a “Cadillac” medical plan, that gets them into Park Avenue doctors offices just on a phone call.
Because of my rather impecunious upbringing, I tended to save a lot because I just didn’t know when money would come in or when an important expenditure would pop up.
**So, I tended to not spend much. **
Just one example: cars.
Cars are very expensive. Purchase, insurance, upkeep.
So, by defacto … I saved “a lot” … not really that much … but … the last car I got was free from a relative. It’s a 1994. The “other car” … the good car … is a 1990 … got it very used … and it had been rebuilt after a wreck. The last time I bought a new car was in 1967 … and it lasted until 1988 …
By avoiding expending money on things that rust and rot or become unfashionable or that are excruciatingly transitory … concert tickets and expensive vacations, for example … it allows me to put money into things that last a bit longer.
And by saving “a lot” … it allows me to invest.
And anybody can do that.
Yes, I get mocked a LOT … my parents accused me of having the first nickel I ever made. Which is not true. But, frugality allows me to be generous to others AND to invest in things that allow me to bridge over bad times.
There is a famous fellow who goes on about his “poverty” … one day he asked if I could give him a ride somewhere and I did and when he got in the car, he said, “this is an old car”. I just kind of winked at him. Someone stopped me and wanted me to sell him my old car and I gave him a price and he became angry with me. I said that my old car was not a hobby; it was transportation and if I gave him my car, I would have to go out and buy a replacement. [Besides, if he really wanted my old car, he could find one easily in PennySaver. He already had a nice car. He just wanted MY car. And he wanted it for free!]
Cars are very expensive ways to leak money away.
Does that make me a bad person?*