Salary is not making people poor.... Inflation is

[pawanjain]

It's not actually the inflation that is making people poor but actually "Lifestyle Inflation" that is making the people poor.
Earlier, people used to save money first and then spend it later on but things have reversed now in the sense that people actually spend first using credit cards and then save money to pay the bill.
This has caused lifestyle inflation in so many people that they have started spending more than what they are making.
This trend is rapidly spreading across the globe and is something that we should be aware of and try to avoid it.

[Fortify]

A lot of people are working harder every single year, earning more on paper yet somehow life still feels more expensive and heavier for them, The problem isn’t always low salary.... sometimes it’s inflation quietly stealing the real value of that income. Imagine you get a 20% salary increase, but food, rent, transport, and basic living jump by 40%… so are you really progressing? The numbers look bigger, yes, but the purchasing power keeps shrinking, that’s why the informed people are now looking beyond normal savings and considering Bitcoin, not because they want to gamble, but because holding weak currency can feel like guaranteed loss. For people thinking long term, DCA into Bitcoin with spare income starts looking less like speculatin and more like protecting future value.

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

Your example seems to be missing a crucial point - if a business is raising their prices because of inflated costs then they should also be helping their employees by raising salaries at a similar rate. It does create a dangerous spiral which can be bad for the overall economy but why should business owners have their profits unaffected while others in their business get poorer every year. I don't see many countries claiming a 40% inflation rate because that would be devastating and entirely unsustainable, even one year of that would be crippling to the economy or most countries. It really needs strong politicians and a properly independent central bank to steer out of these sort of problems, especially when it can be currency related.

[Mr_Brilliant$]

It's not actually the inflation that is making people poor but actually "Lifestyle Inflation" that is making the people poor.
Earlier, people used to save money first and then spend it later on but things have reversed now in the sense that people actually spend first using credit cards and then save money to pay the bill.
This has caused lifestyle inflation in so many people that they have started spending more than what they are making.
This trend is rapidly spreading across the globe and is something that we should be aware of and try to avoid it.

Yeah, lifestyle inflation can definitely make someone poor, there is no doubt about that one... But I don’t think we should downplay the effect of inflation itself because inflation still has a very huge impact..

And most of the times incomes does not grow with inflation.. The prices of food, transport, rent and almost everything just keep going up, but people salary and income does not go up at all.. Even someone that is managing money well use to still feel the pressure.. So even as lifestyle inflation is a problem, inflation itself is also a major problem..

[nara1892]

Inflation is a common problem, and everyone knows this. But there's something even more dangerous than inflation: rising lifestyles. In our country, it's become a habit where, when incomes rise, lifestyles also rise, leaving people without any assets that could increase their value or wealth. They have a machine for making money, but the faucet is leaking (an increasing lifestyle).
So, in my opinion, the most influential and primary cause of poverty here is poor financial management.

[Dreadboost]

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

Earning salary alone or salary growth can never make anyone wealthy,  almost you can just live a comfortable life, which in my opinion is not the same as being wealthy.  For anyone to be wealthy you don't have to depend alone on your salary,  you need to begin to build chains of investment,  which I believe will definitely elevated your status with time. Earning salary is good, because it can help you generate income for your investment,  but like I mentioned again you can't get wealthy if you only depend on your salary,  so the wise thing to do is to use your salary earnings to create chains of investment that can take you to the next level.

[Rebirth01]

A lot of people are working harder every single year, earning more on paper yet somehow life still feels more expensive and heavier for them, The problem isn’t always low salary.... sometimes it’s inflation quietly stealing the real value of that income. Imagine you get a 20% salary increase, but food, rent, transport, and basic living jump by 40%… so are you really progressing? The numbers look bigger, yes, but the purchasing power keeps shrinking, that’s why the informed people are now looking beyond normal savings and considering Bitcoin, not because they want to gamble, but because holding weak currency can feel like guaranteed loss. For people thinking long term, DCA into Bitcoin with spare income starts looking less like speculatin and more like protecting future value.

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

You cannot take away inflation from salary the two are like 5 and 6. Government pays salary and government bad policies give rise to inflation. Those who earn salaries are slaves to inflation and high cost of living. The fiat is weak against the harsh economy therefore making salary earners debtors and slaves to the business men and women. Salary earners these days tend to look beyond just earning salaries rather they tend to create wealth by investing in assets like Bitcoin etc. The weak fiat struggles with inflation and high cost of living. Salary earners are like those who are in a deep hole shouting for help in this harsh economy.

[ZAINmalik75]

It's not actually the inflation that is making people poor but actually "Lifestyle Inflation" that is making the people poor.
Earlier, people used to save money first and then spend it later on but things have reversed now in the sense that people actually spend first using credit cards and then save money to pay the bill.
This has caused lifestyle inflation in so many people that they have started spending more than what they are making.
This trend is rapidly spreading across the globe and is something that we should be aware of and try to avoid it.

Avoiding credit cards should be the first step for such people when they know they have an habit of spending more money than they actually make, because if you have the option to spend more than what you can actually afford then it's surely a problem, especially if you don't have discipline when it comes to spending money. It is true that the younger generation spends more money on their lifestyle than they are supposed to, but I think that's not the root of the cause because someone who doesn't even earn enough can barely spend much on themselves if we take the credit card stuff out of the equation.

So I would say there is contribution from both, your salary and inflation, in making you or keeping you poor, because if you already don't earn enough, and then inflation keeps increasing, then you can obviously not save money, on top of that, you might get indebted because of not being able to complete the whole month with your salary alone. If you were earning way more than enough, you would at least be able to save some money even if there was high inflation in the country.

[Mate2237]

In my opinion the biggest financial trap is believing salary growth alone creates wealth… while inflation is quietly eating everything behind the scenes. We have a lot of unseen battles folks

Earning salary alone or salary growth can never make anyone wealthy,  almost you can just live a comfortable life, which in my opinion is not the same as being wealthy.  For anyone to be wealthy you don't have to depend alone on your salary,  you need to begin to build chains of investment,  which I believe will definitely elevated your status with time. Earning salary is good, because it can help you generate income for your investment,  but like I mentioned again you can't get wealthy if you only depend on your salary,  so the wise thing to do is to use your salary earnings to create chains of investment that can take you to the next level.

Anyone who is relying on salary will obviously not be able to be rich and break through from financial bondage which is mostly associated with people who are depends on a monthly salary. Depending on your salary is like you regulating your life because, alot of things are going to be hindered in the life of such a person, because with salary some things in life is just off you because you can't afford to buy such things.


We should make sure that we look into other sectors of life , that we can be making money from which should remove our overdependence on a salary this is good and more better than waiting for a monthly payment.

[Bitcoin_people]

The salary that people are currently getting from their jobs is not enough to maintain their standard of living. Basically, we can see that the price of everything is increasing rapidly in the market, but there is no increase in the salary of people in the field of jobs, which is making life difficult. Moreover, due to inflation, the salary that is received ends up meeting the family needs, and since the price of goods has become very high, the poor can never save much. Although the salary increases by a small amount, the money runs out to meet the needs in different places and in the end, it is not possible to save. That is why the standard of living becomes the most difficult for those who are not in a good position and have to manage their lives only with the money from their jobs. Moreover, those who do not have wealth can never own a lot of money by working hard because the standard of living does not improve, the financial position does not improve, and if you please, you have to struggle. At present, due to the deterioration of the country's financial situation and lack of market control, inflation makes it very difficult for the middle class and the poor to manage their lives.

[shinratensei_]

It's definitely both, the salary and inflation is making people poor because salary failed to keep up with the inflation. When inflation is high, logically speaking salary should rise over the year but companies like to cut corners. Thus, the salary didn't go up because company efficiency is number #1.
This doesn't only happen in the US, it happened world wide because this is the normal thing to do now. If salary able to keep up, at least we're not gonna have our purchasing power declining this much.

[abaeze]

I completely agree with you on this. Now most people are not able to live comfortably even after reducing their expenses and working hard. People are now exhausted just to meet the basic needs of life, while inflation is forcing people to live a poorer, more helpless and chaotic life. In this situation, people are looking for alternative economies and at this time Bitcoin is working as a tool to help people cope with this uncomfortable situation to some extent. So those who are already or are looking for a way to get rid of or cope with this situation, I think investing in Bitcoin will make it easier to cope with this uncomfortable situation to some extent.

[free-bit.co.in]

I completely agree with you on this. Now most people are not able to live comfortably even after reducing their expenses and working hard. People are now exhausted just to meet the basic needs of life, while inflation is forcing people to live a poorer, more helpless and chaotic life. In this situation, people are looking for alternative economies and at this time Bitcoin is working as a tool to help people cope with this uncomfortable situation to some extent. So those who are already or are looking for a way to get rid of or cope with this situation, I think investing in Bitcoin will make it easier to cope with this uncomfortable situation to some extent.

Investing in bitcoin does not automatically generate profit or make you rich easily.

Bitcoin is just an asset like gold, stocks, or real estate, and what it offers is both opportunity and risk. Whether you can improve your life and overcome financial difficulties depends on how you use it, not on Bitcoin itself. How would you improve your income, cope with inflation, or become wealthy if you bought Bitcoin at a high price and sold it at a lower price?

Bitcoin is merely a tool and a means. It does not promise, guarantee, or commit to anything for us.

[pawanjain]

Yeah, lifestyle inflation can definitely make someone poor, there is no doubt about that one... But I don’t think we should downplay the effect of inflation itself because inflation still has a very huge impact..

And most of the times incomes does not grow with inflation.. The prices of food, transport, rent and almost everything just keep going up, but people salary and income does not go up at all.. Even someone that is managing money well use to still feel the pressure.. So even as lifestyle inflation is a problem, inflation itself is also a major problem..

Yes ofcourse, I mean I am not downplaying inflation but just showing the bigger cause of what's making us poor.
Inflation is still there and it's still eating up most of our savings. Thus even the annual salary growth is not becoming sufficient to beat the inflation.
Many people hardly get 5% to 8% annual salary hike while inflation is more than 8% in reality.
The numbers can vary from country to country but the background story is still similar in many nations.

[Frankolala]

Inflation is a common problem, and everyone knows this. But there's something even more dangerous than inflation: rising lifestyles. In our country, it's become a habit where, when incomes rise, lifestyles also rise, leaving people without any assets that could increase their value or wealth. They have a machine for making money, but the faucet is leaking (an increasing lifestyle).
So, in my opinion, the most influential and primary cause of poverty here is poor financial management.

You can say that poor financial management is the cause of poverty but I don't agree with you because there are people who haven't been privilege to earn above their basic needs and monthly expenses. Inflation is the major problem because as the price of goods and services skyrocket without an increase in your income, it will make you not be able to manage your resources wisely and you will start lacking.

[AgriTrack]

Inflation is there and we cannot change the inflation rate overnight. What we can do is to cut down on our costs or strive for a better paying job. This rat race can never end but it is the system we are born into and cannot change it ourselves. Cut down all subscriptions, shut down credit card use and limit yourself to minimalism life is the best we can do.

Salary will always be like this and unless we reach the day when we are satisfied with anything we have and the money we get. Otherwise we will always want to get more and more and this pathological craving is there in most of us.

Deflationary bitcoin is there but it has not come to that extent that we use it everyday for all purposes.

We cannot give blame to any one factor for increase poverty. If rise in salaries is greater than inflation than it cannot affect the people but if situation is opposite than yes it is responsible for poverty. Presently inflation is double time more than the income. Or inflation is uncontrollable due to global disturbance. I am scared if this ratio increase in such way than future would be worst for everyone. There is need to control it through different measures. Government should control the dependency over the imports. That are main cause of inflation, heavy duties and oil prices contributed to disturb the economy balance between inflation and salaries. As the world moves toward the economically war, any country could become a threat in future

[Cryptmuster]

I completely agree with you on this. Now most people are not able to live comfortably even after reducing their expenses and working hard. People are now exhausted just to meet the basic needs of life, while inflation is forcing people to live a poorer, more helpless and chaotic life. In this situation, people are looking for alternative economies and at this time Bitcoin is working as a tool to help people cope with this uncomfortable situation to some extent. So those who are already or are looking for a way to get rid of or cope with this situation, I think investing in Bitcoin will make it easier to cope with this uncomfortable situation to some extent.

I think Bitcoin has now reached a point where it won't be able to generate much of a return for investors. This is especially true for people who are very sensitive to inflation, and their savings will be very small, meaning their Bitcoin investments won't yield much of a return. Therefore, I highly doubt that for people in need, for whom inflation eats up part of their salary, and they spend the rest on survival, with little savings, any investment will fail to yield the expected results.

[Minor Miner]

Inflation is a common problem, and everyone knows this. But there's something even more dangerous than inflation: rising lifestyles. In our country, it's become a habit where, when incomes rise, lifestyles also rise, leaving people without any assets that could increase their value or wealth. They have a machine for making money, but the faucet is leaking (an increasing lifestyle).
So, in my opinion, the most influential and primary cause of poverty here is poor financial management.

You can say that poor financial management is the cause of poverty but I don't agree with you because there are people who haven't been privilege to earn above their basic needs and monthly expenses. Inflation is the major problem because as the price of goods and services skyrocket without an increase in your income, it will make you not be able to manage your resources wisely and you will start lacking.

Poor financial management is also one of the causes of poverty. But saying that it is the main and most influential cause of poverty is wrong, and somewhat one sided.

For example, many people in Argentina, Venezuela, Zimbabwe, or some countries in Africa work all day but only earn 1 to 2 USD, and that amount is not even enough to meet their basic daily need. The reason is that these countries experience double or even triple digit inflation, which severely erodes purchasing power and reduces the real income of worker.

@nara1892, how can financial management help them escape poverty when their wages are not even enough to meet basic need?

[Exitoral]

Neither salary nor inflation is making people poor, but people are making themselves poor. The people making other people are those who contribute to the high rise of inflation. Inflation in a country is a normal thing because, as the world continues to progress, population increases, and there is scarcity of some natural resources, but when inflation starts increasing rapidly, it is no longer a result of the scarcity of resources but as a result of human greed and lack of contentment. Those with the power to influence the rise of goods and services do so without good reason. Their aim is to make a quick profit and a massive gain.

People do not make themselves poor but systems created by government. I refuse to believe that Mr Paul who is very hardworking made himself poor seriously, that's capping. I made a post about poverty and how it is caused by man. Not people individually. This is it.

https://bitcointalk.org/index.php?topic=5584426.0

I would love your opinion on that.

[JoyceBTC]

Inflation is a common problem, and everyone knows this. But there's something even more dangerous than inflation: rising lifestyles. In our country, it's become a habit where, when incomes rise, lifestyles also rise, leaving people without any assets that could increase their value or wealth. They have a machine for making money, but the faucet is leaking (an increasing lifestyle).
So, in my opinion, the most influential and primary cause of poverty here is poor financial management.

You can say that poor financial management is the cause of poverty but I don't agree with you because there are people who haven't been privilege to earn above their basic needs and monthly expenses. Inflation is the major problem because as the price of goods and services skyrocket without an increase in your income, it will make you not be able to manage your resources wisely and you will start lacking.

Poor financial management is not the only cause of poverty, in this present economic situation where there is hardship, unemployment and high level of inflation those who have jobs are not paid very well to escape poverty because of how expensive things are in the economy they are only managing their salaries which can not take them to 30 days before the next payment due to increase in food stuff, electricity bills, transportation and so many other things.

Not everyone is employed also some are surviving through daily labour which is which they are poor if they do not have a job that can sustain them and pay their bills they will not consider saving for other things and without good investments or savings people will remain poor if they depend on salaries.

[bisdak40]

I completely agree with you on this. Now most people are not able to live comfortably even after reducing their expenses and working hard. People are now exhausted just to meet the basic needs of life, while inflation is forcing people to live a poorer, more helpless and chaotic life. In this situation, people are looking for alternative economies and at this time Bitcoin is working as a tool to help people cope with this uncomfortable situation to some extent. So those who are already or are looking for a way to get rid of or cope with this situation, I think investing in Bitcoin will make it easier to cope with this uncomfortable situation to some extent.

Yeah we are like living paycheck to paycheck the cost of basic needs today is higher because of inflation even if we work hard still we cant live comfortably. Investing is a good thing to but we need to research it more carefully. because a successful investment can help us to cope up with the rising inflation cost.