Reasons Why People Are Poor: The Hard Hitting Top 5 In 2021

Did you know it is estimated that at least 80% of the world’s population lives on less than $10 a day!? I certainly didn’t, but it certainly raises the question, “why?” There are many reasons why people are poor, and even more in today’s day and age.

While I know this topic is a bit sensitive for many, I firmly believe this is a subject overlooked far too often.

Just to clarify, this post is more relevant to people living in more advanced society, with jobs, housing, and modern society a part of their livelihood. It is less applicable to someone living in an African village in “extreme poverty“.

If you are reading this, this information may be coming to you right now, at this point in time, just so that you can change the direction of your life…

I am a strong believer that every person is limitless and has the ability to do whatever they want. I believe there are very few reasons, if any, why someone can’t be rich or financially successful in life.

Let’s get right into this shall we?

Reasons Why People Are Poor:

1. Poor Upbringing

This is the #1 reason why poverty exists, they simply weren’t bought up to be rich. They will say that their parents didn’t raise them to be rich.

Let me just clarify something though, this doesn’t apply to anyone in the world. (What!?)

That’s right, this is an excuse that the world uses 24/7, and it never makes any more sense than it did 100 years ago. People aren’t created rich or poor, they are created equal before God.

People CHOOSE to be rich or poor. People choose to fit in with societies rules, inside the box that supposedly has the right to determine whether someone has the potential or capability to achieve financial greatness in life.

Please bear in mind, this is less applicable to those who live in a far more barbaric or less industrialized society in remote areas, but if money exists or something that people use for trade or commerce exists in a society, the rich and poor exist too.

Two different classes, two different kinds of people.

2. Lazy and Comfortable

This hits home a little to hard for me personally. Laziness and being comfortable with my state, regardless of it’s actual inconvenience and lack of prospects, leads to financial disaster.Reasons Why People Are Poor - Lazy Browsing

Being unwilling to take action because “I don’t want to”, probably kills more people internally than people physically. What good is living life if you never Live!?

Living life is all about risks, experiences, and personal growth! Laziness should be a flaw, not a definitive quality in my life.

I know that I battle laziness. I combat bad habits by creating new good ones, and by having accountability to help me do what I say, when I say it.

There is nothing wrong with being comfortable, unless it keeps me from growing and becoming the person I was made to be.

The reality is, there should never be a place in life that you are lazy, and if you are comfortable, it shouldn’t end your growth. There is always room to grow, to improve, to create further wealth for the next generation, more people to touch, more people to help.

3. 1 Timothy 6:10

“The love of money is the root of all evil”

That’s right, people quote the Bible when they try to justify their financial habits, or lack of them for that matter.

Let’s get something straight for the record, in any modern translation, “money” is not the root of all evil, “The Love of Money” is the root of all evil.

People need to stop worrying about the external and focus on the internal. Regardless what I believe in my spiritual life, I choose what my life will look life, and I am the one who allows things like money to change me or control me.

Please know that I don’t mean to offend anyone, I sincerely hope my intention is clear. I am only stating what people say when asked why they are poor or doing bad financially. I comment only that which is true. 🙂

4. Emotionally Compromised

People are often not prepared to handle success, emotionally. They succeed or fail financially, and they fall apart. Unfortunately, this is also an excuse that we use.Reasons Why People Are Poor - Faceplant

There is no excuse for being poor because it is still a choice. It’s not something out of my control. If I’m not able to cope with the stress and responsibility of financial growth, then I need to do whatever it takes to overcome my inability!

Am I the only one who has noticed an increase in people who are supposedly “grown-up” but haven’t met “grown-up” responsibility well?

They have an industrial age work ideology, they don’t know anything about money management, you might as well be speaking a foreign language when you mention financial freedom, and they make tons of excuses!

Now, it wouldn’t be fair to say that I don’t make excuses, or that I know everything there is about money management or financial freedom, however, there is a big difference between someone who is actively growing, and someone who thinks they “already know that”.

Emotionally compromised just means, “I might start crying or literally die if I don’t make it financially”.

5. Uneducated

Don’t be fooled, this may be the 5th one on the list, but it is one of the most common excuses why my fellow Americans say they aren’t financially literate.Reasons Why People Are Poor - Cartoon Girl Shrugging

I ask if the new generation has read any books by Robert Kiyosaki, T. Harv Eker, or Zig Ziglar, and nearly every time they say, “No”. Worse yet, they don’t even know who they are!

Firstly, if you are reading this and you are a parent, I sincerely hope that you have passed down financial knowledge of the rich to your kids.

If you haven’t, you are setting them up for disaster. You are wrapping them in a straight jacket telling them to swing on the monkey bars.

It isn’t going to happen, and they are going to find it extremely difficult to become financially successful without the right tools.

Poverty Is A Tragedy!

I know I am stepping on some toes here, and you might be saying “Jacob, why are you putting down people who don’t know what you know!?” Because when I am financially free, they are going to ask me how I got there!

They are going to wonder why they are miserable with their lives, and why I am so happy. They are going to wonder why no one told them what they were doing wrong or what they needed to do.

Do you want to be elderly working as a Walmart greeter when you should be on a cruise? Those people should be reaping the rewards of their labor, instead they are working at Walmart because they didn’t take the time to change the direction of their life. It is a tragedy!!!

My Reasons For Success

They will look at me and ask why they haven’t achieved the same level of success. You know what I’m going to say? “I became financially free because of the following:”

  • I never stopped moving forward. Passivity was a word to describe a chess move, not my lifestyle.


  • Success teachers, financial experts and the learning bunch are my idols.


  • I managed my money well. Sure, I wasn’t perfect, but I decided young that I was going to treat every dollar like a soldier on a campaign to bring back even more wealth.


  • Creating RESULTS in my life and not EXCUSES has been key.


  • I was accountable to others who helped me stay the course towards financial freedom.


  • I’ve never stopped learning, even after I graduated from school.


  • I had a clear understanding of what it meant to be rich, and I never accepted that, “The rich are greedy”.


  • Because failure is a life lesson, I embraced it! I’ve learned early on that I have never failed, only experienced pricier and pricier life lessons. 😀


  • I was brought up Middle-Class, but chose a rich mentality daily!


You know what the difference between my reasons and most other people’s reasons are today? Mine are reasons why I have succeeded, theirs are reasons why they failed.

Success Is A Choice Just Like Poverty

In summary, success is a choice. Marriage is a choice. Reading is a choice. Playing video games is a choice. Getting dressed in the morning is a choice. Learning financial information is a choice. Being willing to fail is a choice. Accepting responsibility is a choice.

Looking back, I make excuses in life because I don’t want to make a choice. I’m given a choice to do the right thing or the wrong thing. Funny thing is, the wrong thing is often less work.

But even doing nothing is still a choice!

I have reviewed some great books that are sure to help you overcome financial problems and achieve success in life. Be sure to check those out, Here.

Reasons Why People Are Poor - LMC Coaching

If you have any questions, let me know and I will answer them asap! My email is below and you can leave your questions in the comments below.

Best regards,

Jacob Highley

Jacob Highley

Jacob is the featured author on FSB. He is a seasoned Internet Marketer and Financial Expert. Some of his professional experience includes, Real Estate, Stocks, Business Management, Crypto Currencies, and he is a veteran Online Blogger. He is an avid reader and investor. He has a passion for helping others succeed and overcome obstacles in their lives. He believes that "Knowledge Is Power", and that people have the ability to do anything they set their minds to. You can read more about him, Here.

19 thoughts on “Reasons Why People Are Poor: The Hard Hitting Top 5 In 2021

  • May 12, 2018 at 8:35 am

    Hello ,

    That’t right , lazzines and depression are wolrd disease .

    Good article and good tips to figth againts mediocrity and poor .


    • May 12, 2018 at 8:46 am

      Thanks, Stefan!

  • May 12, 2018 at 8:49 am

    Hi Jacob,

    Good and thorough article.

    I must say the topic of your article could come across to some people as controversial, but in a way that is a good thing. People need to know the truth about why they are in the financial situation they are in, and what they can do about it.

    You gave quite a few reasons why you are financially free.

    What is your number 1 recommendation that a person could put into practice to help them on the path to financial freedom?


    • May 12, 2018 at 8:55 am

      Well, first and foremost, people need to understand what it means to be financially free. I highly recommend books by Robert Kiyosaki. Secondly, people need to grow up. Making excuses doesn’t bring success. I would be fired within about 2 days if I didn’t show up for my job, so why is it I would think I can expect success in life when I don’t show up?

      Glad you liked the article!

  • May 12, 2018 at 9:10 am

    I agree with all your top 5. When growing up, my parents lived pay check to paycheck. For whatever reason, even though I make pretty good money now, I still live paycheck to paycheck! It is time to make a change and break the cycle that was embedded in me all these years. Great article.

    • May 12, 2018 at 9:18 am

      Hey, Jessica, I’m glad you liked the article. Don’t be too hard on yourself, at least you read it and see room for improvement! I am always working on myself, and I always will be!

      I guess a lot of my passion in this article stems from seeing so many talented people waste away as they never find true success or become the people God has made them to be. I still make excuses in life, but I am learning to just simply, “Do it” in terms of moving towards success.

      I’m using Wealthy Affiliate right now to build my business, definitely check that out if you want to start building something that will bring you financial freedom!

  • May 12, 2018 at 9:21 am

    Wow , nail on the head here Jacob. Great article. Very nice Outlook and so deep. Great job. Makes you stop and think a bit. Keep up the great work. Thanks

    • May 12, 2018 at 9:26 am

      Thanks, Tim! Glad to know that you found the post helpful!

    • May 12, 2018 at 10:26 am

      Jacob, my parents lived paycheck to paycheck growing with 5 kids to take of. My current situation I make ok money but still struggle to get by. I had to ask myself those very questions, why am I in this financial situation and what can I change.

      • May 12, 2018 at 10:36 am

        Hey, Tim, it is always good to ask the hard questions, and it is important to not let our environment dictate our character. I can sympathize with both your parents and you.

        I work full time an an answering service and it has been tough sometimes. The only reason I have made it where I am today is because of God’s grace and the good habits that I have practiced.

        I chose to define those moments, and keep pushing for success. If I was having trouble making ends meat, I would look at my financial statement, outline my expenses and make a plan to improve my situation. This is certainly more difficult with children, but not impossible.

  • May 12, 2018 at 9:45 am

    Thought provoking read no doubt about that,everything that happens in your life is directly related to your state of mind.Im a great believer in the power of positive thinking.m

    • May 12, 2018 at 9:55 am

      Very true, Fintan! It’s as simple as, you can be poor, or you can be financially successful, you choose. Thanks for the comment!

  • May 12, 2018 at 2:54 pm

    To put it very simple: You’ll become poor, when you spend more than you earn.
    Everything you wrote, is so true. In my opinion, it’s not a matter of being a millionaire or not. That’s not everyones dream or choice. The problem is, that financial illiteracy makes middle-class people struggle, when they wouldn’t have to. The “buy now – pay later” seduction makes them blind and push them over the edge of financial health.
    In the end, everyone else but themselves will be blamed.

    • May 12, 2018 at 8:53 pm

      All too true in life. Our habits dictate our lifestyle. If we don’t exercise delayed gratification and take care of our money, we are going to find ourselves in a very sticky situation.

    • May 12, 2018 at 8:56 pm

      One could say that people in foreign countries don’t have a choice, but I would advocate that those people aren’t poor, they are oppressed. We have free choice, there are always opportunities around us, but it is definitely more difficult when others subject you. In any case, our identity is not decided by those around us, we remain in control of our lives, and we have the ability to define our situations. Thanks for the comment!

  • May 13, 2018 at 11:54 am

    Well written article about a touchy subject. Couple points I think only apply to people living inthe western world. You have to consider that the 80 % of people making less than 10 bucks are mainly living in third world countries. You really, I mean REALLY don’t have the same opportunities to make money if you do not have the education to even read or maybe are a single mother since age 12 in a village run by ISIS.

    Just trying to point out that there are people who are truly poor because of their situation. These are good point when applied to an lazy american or european who has had the opportunity for education and is in an environment to actually do something about their situation.

    Good topic that really made think, thanks for the post.

    • May 14, 2018 at 7:19 pm

      I think you make a valid point, people don’t have as many opportunities in other countries, and many people don’t have immediate access to the kind of education that other countries do.

      I’m not really sure how much my article applies to individuals who have been oppressed most of their lives, I think their focus has been survival in life, not gaining financial prosperity. I empathize with people who live in such horrible conditions and I truly hope better days come for them.

      However, as cruel as it sounds, the people in those countries are choosing every day to go along with whatever it is that is happening to them. There are always the poor and the rich. There are always slaves and masters. There is always a choice, and there consequences with those choices.

      I’ll say this, America was once a country under the thumb of the most powerful nation in the world, and the words of a famous individual roused his countrymen to make a choice… a choice to live in oppression or to die for freedom: “Give me liberty or give me death.” – Patrick Henry.

  • April 20, 2021 at 1:25 pm

    Thought provoking I must say. I am just lucky to be born in royal families and live a great life. I could spend more than I earn without ever going broke, because the family receive perpetual allowance from the government. There had been times where I just want to leave the lifestyle coz I think it was not fair for those who weren’t born rich. But like you said, it’s choice. So I choose to remain royals as many choose to remain peasants. Thank you for the great article.


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