WHAT MAKES POOR PEOPLE POOR? WHY DO THEY STAY POOR?

what is going on YouTube I am prepper princess the author of living on almost nothing if you are interested in purchasing my book I'll go ahead and leave a link down in the description box below today I want to talk to you about what keeps people poor um this is going to be a long conversation and it's based on my own personal experiences now everybody has a different experience and everybody has excuses everybody a hundred percent of the time that I have spoken with anyone they have an excuse as to why they're poor and it's never their fault never all right so I guess we'll start with number one um and and this is going to be honest blunt direct and I not polite I'm not sugar coating it in any way all right number one is ignorance and not wanting to learn so you know I I learned new things about money every day I've been doing this for 20 25 years I'll never know everything and I still learn different ways to save money make money invest money um everything else all that stuff because I'm willing to learn so if I am ignorant on a subject that has anything to do with finances I will learn it no matter how drive and boring the book may be I will go out of my way to learn about it I will learn about real estate investing passive income dividends ETFs index funds anything I can do to earn a passive income I will take the time to learn about it and almost memorize it in a way memorize it in a way that doesn't mean that I know it word for word but I know it inside and out and and I'm not bragging when I say this um but I do have a high IQ and that puts me at a bit of an advantage that that I think that that makes me want to learn whereas people who may have a below average intelligence do not want to learn now I'm not making fun of anyone who has a below average intelligence the truth is the average intelligence IQ is 100 or it used to be 100 we're actually getting Dumber the average is now 98. in my IQ I am technically gifted but I'm on the dumb scale of gifted I'm not saying dumb I'm on the lower end of the gifted scale but this is something where even if you have below average intelligence you still have the ability to read a book The the literacy rate in the United States is off the charts so um unless you have problems and if you have problems reading there's audio books there's always something there is something and um I think that the willfulness to stay ignorant on a subject puts people at a huge disadvantage that's that's first and foremost um I guess number two would be debt any debt is bad debt now you you start out with college debt right that's that's usually where everybody starts and then when you go to college there's these credit card companies at the college offering you credit cards and then you need a car to get to college but you go and you finance a new car and and you just create a huge deficit to yourself we live in a consumer culture where I am I in my opinion I live a completely normal life full of excitement happiness family love um I'm never bored I'm always out doing something but I am considered Counter Culture because I don't spend everything I earn and more and people actually get angry at me for saving so such a high percentage of my income people get angry at me for it on my channel in my personal life we don't talk about money it nobody cares nobody cares because the people that I hang out with they're my tribe they're the people that want to do the same things that I want to do you know they want to go for an e-bike ride go fishing do this we don't want to go to the mall that would be a huge waste of time to us in both of our opinions whoever it is that I'm hanging out with that would just be a huge waste of time and money and we don't want to do it so so not no debt is good debt none there is no such thing as good debt and I always get these people who Feel So Sophisticated they think they're so smart they have a house mortgage to the hilt their car is is a lease or they have a huge payment on their car I the I don't understand I can't get it I I can't understand that method of thinking um but no debt is the only good debt there is no such thing as good debt even if you have a mortgage and you say oh I'm only paying three percent on my mortgage and I can invest the rest to earn a 10 adjusted rate of return but are you really taking that difference and putting in the putting it in the stock market because statistics stay or not just all there may be there may be an exception or two out there where yes I am taking the difference in my mortgage payment and I'm putting it into a brokerage account but statistically you're not it's like those those uh people who get in the comments and and tell you how how you're eating so wrong and your diet's not good and you're not getting enough potassium or calcium or Vitamin B or iron or phosphate or niacin or whatever it is but statistics say that 7 out of 10 people are uh overweight or obese so there's a 70 chance that the person commenting on how I should be eating does not know how to eat properly themselves or they know how and they just don't when people tell me that uh I saved too much money statistics say 80 percent of the time eight out of ten times those people who are commenting those comments don't have their finances in order so I don't I don't listen to them it's very important that you don't listen to broke people and people who think that they're they're rich are typically hand to mouth so show me your portfolio and then I will listen um so yeah debt number two is taking on debt and being comfortable with it and just thinking it's normal it's not number three is uh trading your money for Stuff again we live in a consumer culture where it's considered normal and a lot of people want money and they want stuff well sometimes you can't have both but nobody seems to be able to understand the balance you can't have both you can't have stuff and money if you don't have the income to support that so what do people choose they choose stuff and then in their Elder years when they're older which they thought would never happen because older people never think they're gonna be they're going to become old my 94 year old mother kept her grandmother was looking around the nursing home telling me how old everybody was and she was the oldest one in the room so um so so yeah um I I kind of lost track of what I was saying but but one of the the main issues is but there it is okay trading your money for stuff do you want money or do you want stuff again most people want both but their income doesn't support it so I personally choose to have money instead of stuff and the reason I choose to have money instead of stuff is because stuff stuff doesn't make me money my money makes me money so if you take your money and you invest it in a dividend that gets ten percent if you guys want a dividend video uh coming up that's fine or you want to invest it in an income generating property hmm paid in cash but if you want to do that sort of thing then you have to give up the stuff for the money and people don't seem to be able to the the people who are poor don't seem to be able to make that um that that that decision they don't they don't see it as one or the other they just say I want both so I'll put it on a credit card so I can have my stuff and I can keep the money in my savings account and just make payments on it but that's how you lose money again that's how you lose money so you buy a couch for a thousand bucks you put it on a credit card and you don't have enough money to pay for it so you're paying interest on the couch and the thousand dollar couch ends up costing you two thousand dollars in the end because you couldn't pay it off in time so you just lost an extra thousand dollars you got a two thousand dollar couch with the thousand dollar price tag um so I would rather buy a cheap couch take the extra and I actually do invest it and I I've generated a passive income over time because um it doesn't take money to make money but it takes money to compound interest so for instance when people say it takes money to make money there is a Seventh Wonder of the world which is compound compound interest which does require money but the best way to make money is to not spend it the best way to give yourself an increase in income is by decreasing your expenses and I've gone over that a million times on this channel million times you know getting rid of the cable and getting a Roku instead and using less electricity using a power strip um getting a used car instead of a you know that's what this whole channel is about but people who report don't seem to make the connection the connection is not not made correctly now I will give you an example of somebody who traded fast food for what could have been a debt-free life so I had a friend a long time ago this is when I lived in my Arizona house and I had a roommate and you guys saw me doing a lot of filming and he did not want to be filmed we are no longer friends I can tell you that right now um so when you now now there's all these people who say homeless people just need a chance that's all they need so I had a friend who was on the brink of becoming homeless like he was going to be homeless within the next few days if he if I did not give him a place to live and he could not afford rent had no money for rent uh he had back child support and he only was able to keep what he what he made he was only able to keep a thousand dollars a month because the court takes took money out of his paycheck because he didn't pay his child support in the past and his exes had to take him to court to get child support so then it's automatically deducted from his paychecks because he didn't pay his bills back then either he was irresponsible then but of course he made himself sound like the victim and then it's not his fault he didn't have any drinking problems no drug problems uh nothing like that I never even see I never even saw him have a single beer so I think okay well this guy's on the level and it seemed like everything that he said was totally honest and he was about to become homeless and I'm like I can't let one of my friends become homeless that doesn't happen with me so I told him to come and live with me for six months um and he would all he always talked about how clean he was and when we went to go move his bedroom his bedroom was immaculate and he moves in and he couldn't save a penny even when he was paying rent in the place before he couldn't pay his entire rent and then he moved in with me with completely free rent free food free electricity water sewer everything everything was free he had his own bedroom all free didn't have to pay a single penny he could not save it because he increased his spending as soon as he was not forced to pay rent anymore do you know what he spent his money on fast food all of it he was there for he left after four months because we got we got into a heated argument when I had to get toilet paper out of his bathroom and there was pee and poo all over the toilet it was disgusting he didn't clean it ever uh in like three or four months it was the grossest thing I think I've ever seen and I I was like you you can't ever let that happen again and he moved out two days later because he didn't like somebody telling him what to do so people who are given opportunities and they don't take advantage of those opportunities because they wanted stuff instead of money now him and I had a whole plan he was like yeah I'm Gonna Save up I'm gonna do exactly what you know that's a really good idea I'm Gonna Save up to buy a quarter acre of land uh for like 2 000 bucks which at the time you could get one and then I'll just I'll just uh live at your place until I can find a trailer and I'll have it towed over there and then I'll just move in didn't save a penny and what ended up happening was uh after he moved out he had to move into a place with people who did drugs and drank and he had to pay a very large amount of rent he had to get a second job in order to do that because he didn't take advantage of the opportunity that I gave him I mean he had his own separate entrance he had his own bedroom he had full use of the kitchen and living room he had a TV in his bedroom his own bathroom everything and he didn't he did not take advantage of that opportunity so that's another thing that keeps people poor is when they don't take advantage of opportunities another one is mindset so there is a poverty mindset and I think that I think of it differently than other people but there is a mindset that poor people have continuously that it's so pessimistic it is such a pessimistic outlook on life like I have never had an opportunity passed through me it was all their fault everything is their fault it's never been my fault it's not my fault that I didn't pay child support it's not my fault that I don't make enough money well it is it kind of is but um it's not my fault I had four kids when from three different daddies who didn't support me yes it is your fault um there's such thing as contraceptive but and that that's another subject that we'll get into but um yeah so the poverty mindset is people who just are so pessimistic they they honestly believe that even in the land of America where a poor person such as myself can become a millionaire lower lower middle income can become a millionaire over time I have seen people come from the projects and become multi-millionaires uh I've seen I've seen people start their own businesses and make millions and these people still say it can't be done I can't do that you know they're and then they say I have a disability look there are blind people making a living on YouTube okay there are people who have no arms on YouTube that make videos no legs they make videos there are people out there with disabilities worse than you have that are making a killing owning their own businesses working on YouTube making videos for extra income and they are killing it but it there's always an excuse a hundred percent of the time well I can't do that because always there's always an excuse the other one is well I don't wanna like a four-year-old I don't wanna well I don't wanna do that I don't want to work a second job I don't want to I don't want to work a different position in my company Rocky come here come here Rocky come here Rocky good girl Nala good girl that's my puppy yeah it's my puppy come here Rocky good boy good boy good boy good doggies you'll have to excuse me you left excuse me good boy oh you're such a good boy this is Nala come here baby say hi Oh you just got a haircut you just got a haircut you're so pretty I don't wanna I don't want to work a second job I would rather spend time with my family what kind of example are you setting for your family that you'd rather not work you know there the with that poverty mindset there's also generational poverty where someone in the of the older generation just says I don't want to work I don't wanna so or I don't want to work that hard so they don't so what do they have they have no money and then that's what this that's what the Next Generation learns we learn from our parents we learn from our our relatives the people that we look up to we learn from our Mentor mentors just by watching you don't even have to teach them they just watch and that's why that's what they learn well this is the way life is I'll never get ahead I'll never be able to do this you know people I don't wanna mow Lawns on the weekends I don't want to do Uber or doordash or get a job for like three three nights a week delivering pizzas I don't wanna I don't wanna uh like a four-year-old they have a little pit a little little pitch fit fit they have a little hissy fit I don't want it I'm not gonna do that as if as if making money is too good for them or if they're too good to make money that not money making money is too good for as if they're too good to make money like I'm that is beneath me like really okay and I've done some crazy jobs I've done some stuff that was beneath me and take it from somebody who just 10 years ago in 2010 when my mom passed away um there was a layoff at my job the same week that my mother passed away and I took unemployment and then and I I milked it because I wasn't mentally well and I knew it but a year and a year or a year and a half later I got a job making ten dollars an hour which was like and it was hard work and I stayed at that company for like eight and a half years when I I started at 10 an hour and when I left I was making 22 and change but uh I also decided that's the last time I ever work a job and then I went and worked another job which was so stupid working it working another job after that was a big mistake on my part but I should have focused on my YouTube and uh what I really love to do which is to teach people how to save money but I didn't I made that mistake and I shouldn't have but I did and now we're back where we are and then uh the other one is um not just being flat out irresponsible flat out irresponsible i that you know the the numbers the statistics of not just the United States but the world are so bad like they're so bad in everything in the older you get the more dismal it looks the worse it looks like um retirement age people the average savings is like a Year's worth of wages which is horrible and people really do just rely on Social Security as their source of income that's it that's it and and it's just so dismal people do not they're just irresponsible it's almost like math does it it's like the math doesn't apply to money but money is a number so they understand math but somehow money eludes them as if it's different and it's not but there is a responsibility Factor when I was getting out of debt in my early 20s I took responsibility that was my mental shift was taking I took responsibility I was like whoa I really messed that up and then I set expectations to fix it and I fixed it in a year and a half but people who they're just like I don't know how I got pregnant I don't know how that happened really you don't know how that happened you know how that worked right did your parents have that talk with you you know and then they have like three or four kids when they're making no money like this is the most irresponsible thing that I don't know how people can do that and then okay I can't get into that about the a rates are one in four people but we're not going to talk about the a rates it's an eight letter word that starts with a and ends with n one out of four women have those because of irresponsibility so taking responsibility not taking responsibility is another thing that keeps people poor all right this video is getting way too long so I'm going to in in its dismal like the numbers are horrific I really hope that anybody who's watching this will take a look at the numbers you know what is the average retirement savings what is the average debt what is the average whatever you know plug it in here and see what it is and it is so dismal rise above it rise above it take responsibility for your actions choose money over things make good choices take advantage of every opportunity that is given to you and you can become a millionaire and you know work a second job if you have to uh choose the modest home instead of the luxurious one choose the modest car instead of the uh Decked Out fifty thousand dollar Tesla choose something that is within your wage range act your wage there you go that's what I've got for you folks do what you can with what you've got prep a princess out

Channel: Prepper Princess

Views: 64,371

Keywords: Low income, poverty, poor people

Id: 1rIw1XLIWjw

Length: 23min 33sec (1413 seconds)

Published: Mon Jun 26 2023