Yahoo Finance Growing Up Poor: 8 Things I Never Waste Money On
Poverty in America has increased in the past few years. According to Debt.org, roughly 37.9 million or 11.5% of Americans live in poverty. The Census Bureau reports that as recently as 2023, a family of four is living in poverty if they make less than $29,950 annually, while that figure is $14,880 for a single person. As dire as these numbers feel, it’s also important to know that it is possible to get out of poverty.
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GOBankingRates spoke to individuals who said that while they grew up poor, they are now financially comfortable. Yet, there are a slew of items, they said, they will never waste their money on.
Fast Fashion or Cheap Shoes
C. Nicole Mason, Ph.D., president emerita of the Institute for Women’s Policy Research, and author of Born Bright: A Young Girl’s Journey from Nothing to Something in America, was raised by a single mother and experienced as a kid what it meant to be tight on money.
“As a kid, we purchased shoes twice per year, once in the fall and once in the spring,” said Mason. “My mom purchased high-quality shoes because they had to last. Today, when buying clothes, I still believe in quality over quantity. I invest in timeless pieces and good shoes that can be repaired.”
Renting or Leasing Homes or Cars
Mason said that when she was a kid and rental increases happened to her family, it meant they had to move or stay with family. In turn, this has impacted how she views renting versus homeownership.
“I purchased my first home at 25 when my landlord raised the rent,” she said. “I realized the sensible financial choice was to purchase rather than continue to deal with unpredictable rental increases. I now own three homes and have built substantial equity over time.”
Mason added that she also only purchases cars, she never leases.
“In college, I learned the hard way about the downsides of leasing. At the end of my contract, I had no equity and owed the leasing company for wear and tear,”
Late Fees or Surcharges
Another thing Mason pays attention to are late fees and surcharges, which, when you’re poor, are sometimes unavoidable and costly.
“I pay my bills on time to avoid late fees and steer away from financial products that have extensive fees or surcharges,” added Mason.
Beauty Products (Skincare or Hair Care)
According to her, the billion-dollar beauty industry works hard to convince consumers to routinely spend on skin and hair care products.
“As a child, we had the basics and they all seemed to work fine,” she said.
In turn, today, she said that she maintains a simple skin and hair routine, relying on a few products that take no more than five minutes to apply.
Expensive Memberships or Hobbies
“The more money you earn, the more offers you get to join fancy gyms, social clubs, or options to try the latest fitness craze–I just say no,” said Mason.
She explained that her gym is “pretty basic,” and she also avoids members-only clubs that often charge exorbitant fees for extras she doesn’t need.
“I have a rule: If I find a sport or hobby I really like, I give myself six months of doing it before investing in equipment or gear, and even at the six-month mark, I’m pretty conservative,” she added.
How Much This Saves Her:
The apartment Mason purchased in Brooklyn, New York, in 2007 has doubled in value.
“Yes, it took some time to save for the down payment, but it was worth it,” she said. In terms of hobbies, by sticking to the basics and saying no to expensive club membership, she estimates she saved $7,000-10,000 annually.
When it comes to clothing and shoes, Mason said she probably breaks even choosing quality over quantity, and clothes last much longer. “I’ve been wearing the same Donna Karan cropped leather jacket and Ariat western boots for at least 15 years,” she added.
Finally, her hair and skin care routine costs about $250 for the year. “Over the years, I’ve upgraded to a few premium products, but do not splurge on the whole line of the entire brand,” she said.
Dining Out
Gene Caballero, co-founder of GreenPal, explained that his financial journey has been “quite a tale,” from enduring a less affluent upbringing to eventually moving into a middle/upper-class status.
In turn, he said that these experiences have significantly shaped his spending habits, even now that he has achieved financial stability.
One area he never wastes money on is dining out excessively.
“While it’s a luxury I can now afford, the idea of paying a high price for something I can make at home for a fraction of the cost still doesn’t sit well with me,” said Caballero. “I value the simplicity and savings that come with home-cooked meals.”
High-End Clothing
This is another sector where he doesn’t splurge.
“Although it’s tempting to invest in the latest fashion from expensive brands, I choose quality and functionality over brand names,” he said. “The lesson of valuing money and not getting swayed by brand allure has stayed with me from my early days.”
Television and Streaming Services
Finally, Caballero said he is also frugal when it comes to paying for television.
“In an era where information and entertainment are abundantly available online, paying hefty amounts for cable or satellite TV doesn’t make sense to me,” he said. Instead, he uses the accounts of friends and family if there’s something specific on TV he wants to watch.
“Growing up with less taught me the value of money and the importance of distinguishing between needs and wants,” he said. “These lessons continue to play a significant role in my spending habits, helping me make informed decisions that reflect a balance between enjoying the fruits of my labor and maintaining a prudent lifestyle.”
How Much Does He Save?
According to him, by removing these expenses, he saves at least $1,000 per month. Eating out saves him at least $600 per month, not buying clothes saves him at least $350 per month, while television saves him at least an additional $150 per month, he added.
Laura Bogart contributed to this article.
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This article originally appeared on GOBankingRates.com: Growing Up Poor: 8 Things I Never Waste Money On
