That's a lot of what ifs.
I bet that they'd be happier with a crappier phone when they lose their job and have enough savings to ride out looking for a new one. In fact, they'd probably find a better paying job if they didn't have to take the first one they could land.
The problem with poverty is that many think "that's how life is" and don't realize that they can get out of the cycle. If people in poverty saved just $20 per week, they'd have $1000 in one year, which is nearly a month's pay at minimum wage. $20 per week is likely the amount they spend on "luxury" items, like fast food and a fancy phone bill. In fact, the average cell phone bill for an individual is ~$70, or around $1k per year, and nearly half spend over $100[1]. Having a month's pay in cash means you have that much longer to find a new job, and can withstand emergencies like a broken car that often result in taking on payday loans or the like.
Yes, they probably think that their fancy phone makes them happy, but I think it's quite the opposite because it's increasing the frequency of financial stressors.
The happiest people aren't the ones with the most stuff, but the ones with the most financial stability.
- [1] http://business.time.com/2012/10/18/47-a-month-why-youre-pro...
I bet that they'd be happier with a crappier phone when they lose their job and have enough savings to ride out looking for a new one. In fact, they'd probably find a better paying job if they didn't have to take the first one they could land.
The problem with poverty is that many think "that's how life is" and don't realize that they can get out of the cycle. If people in poverty saved just $20 per week, they'd have $1000 in one year, which is nearly a month's pay at minimum wage. $20 per week is likely the amount they spend on "luxury" items, like fast food and a fancy phone bill. In fact, the average cell phone bill for an individual is ~$70, or around $1k per year, and nearly half spend over $100[1]. Having a month's pay in cash means you have that much longer to find a new job, and can withstand emergencies like a broken car that often result in taking on payday loans or the like.
Yes, they probably think that their fancy phone makes them happy, but I think it's quite the opposite because it's increasing the frequency of financial stressors.
The happiest people aren't the ones with the most stuff, but the ones with the most financial stability.
- [1] http://business.time.com/2012/10/18/47-a-month-why-youre-pro...