Homestead forum diaspora

Are you poor because you have made some bad financial decisions?

Or, are you making bad financial decisions because you are poor?

While poverty is a complex issue, recent research  suggests that poverty can result in an individual making poorer financial decisions than the

SAME PERSON would if he/she were not in poverty:   

“..The poor often behave in less capable ways, which can further perpetuate poverty. We hypothesize that poverty directly impedes cognitive function and present two studies that test this hypothesis. First, we experimentally induced thoughts about finances and found that this reduces cognitive performance among poor but not in well-off participants. Second, we examined the cognitive function of farmers over the planting cycle. We found that the same farmer shows diminished cognitive performance before harvest, when poor, as compared with after harvest, when rich. This cannot be explained by differences in time available, nutrition, or work effort. Nor can it be explained with stress: Although farmers do show more stress before harvest, that does not account for diminished cognitive performance. Instead, it appears that poverty itself reduces cognitive capacity. We suggest that this is because poverty-related concerns consume mental resources, leaving less for other tasks. These data provide a previously unexamined perspective and help explain a spectrum of behaviors among the poor. We discuss some implications for poverty policy…”

http://www.sciencemag.org/content/341/6149/976.abstract

Some additional reading on the subject:

http://www.theatlantic.com/business/archive/2013/11/your-brain-on-poverty-why-poor-people- seem-to-make-bad-decisions/281780/

http://www.theatlanticcities.com/jobs-and-economy/2013/08/how-poverty-taxes-brain/6716/

http://killermartinis.kinja.com/why-i-make-terrible-decisions-or-poverty-thoughts-14501235 58

Bottom line:  if you consider yourself to be poor, you may need to be doubly careful when you make financial decisions, because research suggests that you may be predisposed to making bad financial decisions simply because you are poor. 

And always be wary of others who try to profit from those bad decisions, such as pay-day lenders, rent-to-own, and  other businesses  offering “easy financing” (easy does not mean cheap)

Max

Interesting........  I'm assuming "Poor" in this study means little money. I don't have a lot of money, but I am far from poor.

9 to 11 inches of snow  here tommorrow, and minus 9 F for a low.

Just like Alaska, but without  Palin & the moose !

Max

Why is a snow storm like sex?

Because you're never real sure when your going to get it, how long it will last or how many inches you'll get before you have a mess to clean up. 

Mr Harden I presume?

My friends call me Alistair.  

Al still doesn't know I borrowed his name.   LOL 

Alistair Harden sounds like an old English Prof, no?

Just like the old forum.

Every topic eventually works it's way around to...

I blame it all on Kezzie

why r I poor ... well the reason is kinda like the dwarves song ya know ........... I owe.. I owe... I owe everyone I know ........... oh wait sorry theirs is.... hi ho... hi ho... off to work I go huh????

"Alistair Harden sounds like an old English Prof, no?"

More like the name a porn star picked becaues he wanted a name that sounded like an old English professor.

Y R some poor... Pyrimid economics can only exist if some R poor.

Not that some made poor decisions, but others had the opportunity to take more of the pie.

I have never felt the whip of ambition driving me; to climb that ladder, kiss that boss's ass, laugh at the jokes, etc. Then again, it could have somethin' to do with my behaviour at company xmas parties and such... One might call me irreverant. HA!

No matter how much or how little money I've made in the past, I've always made do and been well fed, housed and comfortable.

"Use it up, wear it out, make it do, or do without."

Me thinks;One can be broke and still not be poor.

Go for it Rob, I don't object to the exposure (excuse the pun.....:P)

bulletbob at January 6, 2014 at 4:40 PM

Me thinks;One can be broke and still not be poor.

This is true. If I lived in a little country cabin with food to eat, I would consider myself rich wether I had money or not.

don't encoutrage Rob to expose ......... we might never get him to dress again ........hahahahaha

Two rules:Stay Healthy.Stay out of debt.Stay healthy by eating quality food,getting plenty of exercise.Stay out of debt by not spending money you don't have.

Tru-DAT

I have found quality food isn't so difficult to get. If you know how to cook that is. And doesn't cost a lot more. (ie. fresh fish has a lot less water than frozen fish costing 2/3 the price)

proper exercise requires spare time each day.

Staying out of debt is easier than most think. American lifestyles means spending a ton of money on things we don't need. Most people can get out of debt by not keeping up with a champane diet on a beer budget.

rule numer three: KEEP THE FREAKN HOUSE TIDY AND CLEAN ENOUGHT TO BE HEALTHY!

Have you noticed that poor people are more likely to have dirty and untidy homes? Probably reflects an unorganized life. Also an organized home greatly reduces stress, because you know what you have and where it is. This would help you feel richer without changing the amount of money you have.

And you wouldn't have to go buy new if your bone yard is organized. It takes decades to aquire enough "junk" that when something happens on the homestead you can scratch around to find something that will work. Honestly this is the one fact that nags at me when I think about relocating. I have ton's of stuff. electrical, plumbing, wood scraps, car parts, small engine pieces, etc. Not to mention tools you may only need a couple times in your life. I want to be a resource for my nieghbors so they think, "Hmm, I wonder if Rob has anything around his place to fix this"? Instead of what most people do, run out to Home Depot and buy retail. A good bone pile can save you thousands over time.