You hate being poor, and you can’t stop asking yourself, “Why am I so poor?”
The truth is, poverty means not having enough to live a normal life. It means your chances of building the life you want are painfully slim. Worse yet, poverty sticks around for generations. If you’re poor, your kids likely won’t inherit any generational wealth.
Why Am I Poor? 3 Key Reasons
There are many reasons you might be struggling financially, but these three are the biggest culprits. Maybe all three apply to you—or just one or two. Either way, understanding why you’re in this situation is the first step to changing it.
- You Grew Up With Fewer Advantages
Some people are simply born into privilege—better opportunities, resources, and support. If you weren’t one of them, that lack of advantage could be why you’re poor today. - Life Hit You With a Major Setback
Did you know most bankruptcies stem from medical bills? It’s true. Many people were doing fine until an illness or injury left them unable to work. Comparing yourself to those who stayed healthy isn’t fair. Maybe an unexpected crisis—like illness or depression—knocked you off track. - You’ve Made Bad Money Moves
Even if life dealt you a rough hand, your own financial choices still play a role. Acknowledging your past is important, but what matters more is recognizing what you can do now to turn things around.
Keep reading for 11 steps to stop being poor and broke—and start building real financial freedom.
11 Steps to Stop Being Poor and Broke
If you’re serious about escaping poverty, you need to take action. Follow these steps, stick with them, and you’ll be on your way to a better life—maybe even wealth.
1. Decide Not to Let the Uncontrollable Control You
Yes, some things in life are out of your hands—but your daily actions aren’t. Don’t let past setbacks dictate your future. Choose every day to be the best version of yourself, and you’ll climb out of poverty faster than you think.
2. Face the Reality of Your Finances
You can’t fix what you don’t measure. If you haven’t already, list everything you own and everything you owe. Tools like Personal Capital (free online and as an app) help track bank accounts, credit cards, and debts so you know exactly where you stand.
3. Boost Your Income With a Side Hustle
One of the fastest ways to improve your finances? Earn more. Here are three easy side gigs you can do from home:
- Take Online Surveys
Quick, simple, and legit. Survey Junkie is our top pick—no spam, solid payouts via PayPal, and even fun surveys (like a recent $50 music review gig). Not all pay that well, but every bit helps. - Get Paid to Watch Videos
Sounds crazy, but Swagbucks pays you for it. Sign up through our link for a $5 bonus. - Rent Out Your Car
Not using your car today? List it on Turo and earn cash. Your car’s covered by $1M liability insurance, too.
4. Cut Unnecessary Spending
Overspending is easy—especially with credit cards. (We love rewards, but swiping plastic makes it too easy to blow cash.) Track your spending with Personal Capital to spot leaks.
5. Read Instead of Scrolling or Binging TV
Rich people read for self-improvement (88% vs. 2% of poor people). If you’re “too busy,” try audiobooks (63% of rich people do).
6. Level Up in Your Career
Even a small raise helps. Check out How I Grew My Salary by $100,000 in My 20s for inspiration.
7. Surround Yourself With Better Influences
You become like the people you spend time with. If your circle drags you down, find new friends who lift you up.
8. Get Cash Back on Everything You Buy
Our favorite cash-back tools:
- Shopkick: Earn just for walking into stores.
- Ibotta: Grocery cash back (we’ve made $347.89!).
- Rakuten (formerly Ebates): Automatic online shopping rewards ($150+ saved this year).
9. Invest—Even Just $100
Start small:
- Dividend stocks (try Ally Invest at $3.95/trade).
- Peer-to-peer lending (as little as $25 on Prosper).
- Cryptocurrencies (high-risk, but get a $10 bonus on Coinbase).
10. Ditch Unused Subscriptions
Apps like Cushion track and cancel subscriptions for you—plus negotiate bills. Users have saved $8M+.
11. Invest in Yourself With Online Courses
Self-improvement unlocks earning potential. Skip expensive programs—affordable online courses offer the same knowledge on your schedule.