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Being poor isn’t just about having less money. There are hidden costs that make it even harder to get ahead. Late fees, overdraft fees, high interest rates, expensive transportation, application fees, buying smaller quantities, replacing cheap products, and having no financial cushion can turn a small setback into a much bigger financial problem.
When you don’t have savings, one emergency can become debt. When you have bad credit, you can end up paying more for loans, housing, and other necessities. When you can’t afford to buy in bulk or purchase quality products upfront, the “cheaper” option can cost more over time.
That’s the vicious cycle of poverty: you often need money to avoid the expenses that come with not having money.
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