Author: Deborah Armstrong

Most people feel poor when they are living paycheck to paycheck and struggling to make ends meet each month, but is this really poor? First, we will discuss understanding the different types of poverty and what being poor is. Once you understand what poverty is you can then continue reading about the steps needed to prosper. Depending on where you are, the socio-economic scale determines where you should be focused on making changes. The actions needed to prosper for the poor than they are for middle class.

Prosperity Club focuses on income to determine social class. However, income isn't the only deciding factor. Having more money or more education doesn't mean you are better at handling money. There are plenty of people with money that live pay check to pay check. They can be burdened by debts.

Our blogs include ideas and resources to help you on your journey to prosperity.

DEFINING POVERTY GLOBALLY

The United States of America may be one of the richest countries in the world, but it does not escape poverty. Understanding the Differences of Global Poverty and U.S. Poverty helps us understand more about our country in comparison to other countries. You might be surprised in the differences between Global vs U.S. poverty.

How is poverty measured across the globe? Each country’s government gathers information to determine poverty, and the World Bank conducts their own surveys.

The World bank gathers information on household income then divides the income by the amount of people in the household. It is measured against the costs of food, clothing, and shelter.

WHO’S TO BLAME FOR POVERTY

Escaping poverty and making ends meet is not only an individual problem but also a national problem. Poverty is a financial burden to a nation. You can do everything you have been taught to do to get out of poverty, and you can still be poor. As an individual you need to do what you can to lift yourself up as much as possible, while the nation needs to provide a fair playing field for the general welfare of its citizens.

It is unfair for anyone to say "if I can do it anybody can do it." As if their burdens are greater than anyone else's. It is a lot easier for someone to start from upper middle class or middle class to become rich or wealthy than it is for someone who is poor. Were they born into a poor family or a poor nation? If your parents are wealthy, they have connections which can get you the best jobs with the best companies. How well you did in school doesn't matter. We have all heard the saying "it isn't what you know, but who you know." Knowing the right people will get you the job, not your grades. There is more to escaping poverty and making ends meet than people think. There are a lot more road blocks for those who are poor.

The Middle class has 3 subcategories. They are Lower Middle Class, Middle Class, and Upper Middle Class. It also depends on various factors such as income, education, occupation, and location. In the United States. It is typically defined as households earning between $45,000 and $135,000 per year. However, this definition can vary depending on the source and the region. It's important to note that being middle class is not just about income, but also about lifestyle and values.

In January 2022 Fortune magazine showed the middle class on a national scale.

Click here: Fortune Article - who is the middle-class —and how they survived during the first year of the pandemic

In order to have a better understanding of what is considered middle class, look at the table below: There are 3 subcategories of the middle class based on income for a family of three. It is used for general purposes, not to categorize people.

GOOD DEBT VS BAD DEBT

The first step in learning the strategies to get out of debt quickly is knowing the difference between good debt vs. bad debt, and how to control it.

Bad debt charges interest on items that lose value over time. Using a credit card for a consumable item like buying clothes, going out to eat, or a loan for a car that depreciates in value is bad debt. Good debt has a return on investment. Money borrowed for an education, a business, a home, or anything that adds future value is good debt.

• your education demanding higher pay for a better job
• your business that buys equipment that produces more products for less money.
• allows you to deduct the interest on your tax returns (1040).