I've lived on incredibly small amounts of money before. At one time in my life (when I was young and travelling) I couldn't afford meat and became vegetarian. Throughout my life I've spent periods where I've chosen to spend incredibly small amounts of money (though out of choice rather than necessity). I'm talking the equivalent of less than $1K per month.
I think the biggest thing you need is to have the skill to understand where the time/money tradeoff pays off. If you have a low paycheck, it doesn't make any sense to work overtime and then not have time to cook a meal. If you have a family, you might be talking about making $20 and spending all of it at Mac D's. These kinds of things add up as well. If you need a car to maintain a hectic schedule, it can easily end up costing you as much as your entire food budget.
These things are super hard and I think people, whether poor or rich, get it wrong all the time. Prioritisation is also super hard. It's easy to get in your head "Oh, I should have a least X" and so you go out and get X, even though you don't actually need it. Then you get stuck in an inefficient part of the curve for all of the other things that you do need.
In that way, the stigma of poverty is often worse than the poverty itself. If you accept your poverty and cooly make the right choices all the time, then you can live on very, very low levels of money. You can even do so very comfortably and be happy. But if you fight against it, loose heart and try to be "like everyone else", then it's this terrible downward spiral that you can't get out of.
And it's kind of stupid because you can work out the math a million times over and say that people should be able to live on $X or make time for Y, but nobody teaches people how to be poor and happy. We collectively send the message that poor is bad and that only through increased money will your life get any better.
I honestly wish we taught more life skills in high school. Most of the academic stuff people ignore and forget anyway. I'm happy I know about ionic bonding, how titration of acid works, etc, etc because I have used it to make beer and cheese. But it's just not relevant to the vast majority of people on the planet. How we get away without teaching basic skills like managing a budget, shopping, finding a place to live that you can afford, finding and doing well at a job, etc, etc, etc I just don't understand.
I think the biggest thing you need is to have the skill to understand where the time/money tradeoff pays off. If you have a low paycheck, it doesn't make any sense to work overtime and then not have time to cook a meal. If you have a family, you might be talking about making $20 and spending all of it at Mac D's. These kinds of things add up as well. If you need a car to maintain a hectic schedule, it can easily end up costing you as much as your entire food budget.
These things are super hard and I think people, whether poor or rich, get it wrong all the time. Prioritisation is also super hard. It's easy to get in your head "Oh, I should have a least X" and so you go out and get X, even though you don't actually need it. Then you get stuck in an inefficient part of the curve for all of the other things that you do need.
In that way, the stigma of poverty is often worse than the poverty itself. If you accept your poverty and cooly make the right choices all the time, then you can live on very, very low levels of money. You can even do so very comfortably and be happy. But if you fight against it, loose heart and try to be "like everyone else", then it's this terrible downward spiral that you can't get out of.
And it's kind of stupid because you can work out the math a million times over and say that people should be able to live on $X or make time for Y, but nobody teaches people how to be poor and happy. We collectively send the message that poor is bad and that only through increased money will your life get any better.
I honestly wish we taught more life skills in high school. Most of the academic stuff people ignore and forget anyway. I'm happy I know about ionic bonding, how titration of acid works, etc, etc because I have used it to make beer and cheese. But it's just not relevant to the vast majority of people on the planet. How we get away without teaching basic skills like managing a budget, shopping, finding a place to live that you can afford, finding and doing well at a job, etc, etc, etc I just don't understand.