TL;DR: Understanding Poverty From a Personal Journey of Loss and Recovery
Poverty is more than financial hardship, it's a survival-based mindset shaped by systemic flaws, chronic stress, and constant scarcity. After losing my wealth at 29 and rebuilding from nothing, I learned key lessons about poverty:
• Time is survival currency: Every minute is spent navigating obstacles to meet basic needs.
• Poverty is expensive: "Cheaper" solutions lead to higher long-term costs.
• Chronic stress affects everything: It damages mental health, focus, and decision-making.
• Systemic structures perpetuate poverty: Predatory lending, low wages, and exploitative systems trap people.
Wealthy individuals and entrepreneurs can learn resilience and empathy from these experiences, improving their understanding of customers and employees in financial struggles. Advocate for systemic reform and emphasize accessibility to drive meaningful change. Start by fostering empathy and pushing for fair wages and resources.
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I Grew Up Rich, Went Broke at 29, and Rebuilt From Nothing: 9 Things About Poverty That Wealthy People Don’t Understand
Poverty is much more than a temporary financial lack. It’s an all-encompassing force that rewires how you think, plan, and live. Growing up wealthy, I thought I understood how “the other side” lived, but losing everything at 29 shattered those illusions. Rebuilding my life revealed harsh truths about poverty that wealth often obscures. Here’s what I learned and why most wealthy people struggle to truly grasp these realities.
What Makes Poverty so Difficult to Understand?
Wealth often creates a buffer, a sense of immunity from the realities of being poor. It’s not just about having money, it’s about living in a mindset that assumes stability, optionality, and abundance. The wealthy have the privilege of making financial choices based on personal preferences, while the poor must optimize every decision for survival.
- Time, energy, and resources: The poor spend hours navigating inefficient systems, collecting pennies to make ends meet.
- Chronic stress: Even minor setbacks like a flat tire or late payment can cascade into life-altering consequences.
- The system’s design: Poverty is deepened by structures like payday loans and predatory fees that exploit those with the least.
Lesson 1: Time Isn’t Money for the Poor, It’s Survival Currency
For the wealthy, time is an asset they deploy strategically, often trading it to increase their return on investment. For the poor, time is survival currency. I once spent three hours trying to bargain down a utility bill penalty, not because I enjoyed the debate but because it determined whether I’d have groceries that week. Wealth removes the necessity of constant calculations. Poverty makes every minute, and every decision, a lifeline.
Lesson 2: Poverty Is Expensive
The “poverty tax” is the hidden surcharge of being poor. Buying cheap leads to regular replacements, which cost more over time. Living without assets, like a reliable car or washing machine, forces people into constant spending traps. For example, taking public transportation instead of driving might save upfront costs but demands far more time. The wealthy fail to understand how constantly patching temporary solutions eats away at long-term wellbeing.
Lesson 3: Chronic Stress Damages Everything
Wealthy individuals often allocate budgets for self-care and relaxation. They have gym memberships, therapists, and work-life balance strategies. But as someone who lived paycheck-to-paycheck, chronic stress became my norm. The daily mental load of juggling unpaid bills, risking eviction, and managing food insecurity didn’t just threaten my physical health, it rewired my brain to operate in survival mode. Sleep wouldn’t come easily, and my concentration dropped.
Lesson 4: Social Stigma and Constant Shame
Poverty comes with invisible scars: the shame of using food assistance, skipping social events to avoid spending money, or arriving at work in worn-out shoes while colleagues sport designer brands. The wealthy often shield themselves from societal judgment, but shame becomes the daily companion of the poor. This stigma eats away at confidence and isolates individuals further.
Lesson 5: Lack of Future Planning
Once you’ve faced poverty, you understand there’s no “next year” mindset. Wealthy people plan vacations, savings strategies, and long-term investments. The poor fixate on surviving until next week. I couldn’t imagine saving or investing when all my energy was channelled into making sure my short-term survival wasn’t jeopardized by a heating bill or unexpected car repair.
Lesson 6: How the System Perpetuates Poverty
Once I lost everything, I realized that poverty wasn’t accidental, it’s embedded in the system. Predatory lending models, late fees that punish those with no resources, low wages designed to trap entire demographics… it’s a web created to prevent escape. Wealthy people often see poverty as a personal failing when it’s structural. Those in poverty face hurdles designed by systems meant to benefit the wealthy.
How Can Anyone Break Out of the Cycle?
Breaking free from poverty requires a combination of systemic changes and individual resilience. When I rebuilt my life, therapy helped me process the anxiety and decision fatigue. Setting micro-goals (like saving $50 a month) gave me hope. But individual strategies alone aren’t enough; tackling poverty needs broader societal change focused on accessibility, fair wages, and financial literacy.
- Invest in education: Programs that teach financial skills and provide pathways into higher-paying jobs.
- Focus on mental health: Accessible counseling or therapy for stress and trauma recovery.
- Advocate for systemic reform: Laws that cap payday loan interest or eliminate exploitative fees.
What Founders and Entrepreneurs Can Learn About Resilience
Entrepreneurs who’ve faced poverty often emerge with unmatched resilience. The survival mindset, analyzing options, downscaling quickly, embracing frugality, can become assets in startup scenarios. On the flip side, those coming from wealth need to ensure they don’t over-rely on comfort zones. Emotional intelligence and adaptability aren’t born from abundance, they’re refined by exposure to challenge.
Whether you’re bootstrapping a company or scaling a startup, understand that those little choices, how to stretch budgets or cut costs, can offer insights into the mindset of your customers and employees facing financial challenges. Empathy leads to meaningful connections and impactful decisions.
Ultimately, poverty isn’t just about money, it’s about mindset, systems, and survival. If you choose to support global financial equity or advocate for change, lean into empathy and recognize the hidden costs millions face daily.
FAQ on "I Grew Up Rich, Went Broke at 29, and Rebuilt From Nothing: 9 Things About Poverty Wealthy People Don’t Understand"
What inspired the author to write about poverty after growing up wealthy?
The author's inspiration stemmed from experiencing life on both ends of the financial spectrum: growing up with privilege and then losing it all at 29. This unique perspective gave him firsthand insight into how poverty affects every facet of life, from time management to emotional well-being. The striking realization was that the wealthy often fail to understand these struggles, which pushed him to share his story and insights. His journey revealed the systemic nature of poverty and how survival mode changes one’s decision-making process.
How does poverty rewire the way people think and plan?
Poverty rewires the brain to focus on short-term survival rather than long-term goals. Decisions revolve around immediate needs, like paying bills or buying food. For example, instead of saving or investing, someone might choose to delay utility payments to afford groceries. This “survival mindset” contrasts with the wealthy’s ability to think long-term, plan vacations, or make big investments. The constant mental load of poverty leaves little room for planning ahead.
Why is poverty described as expensive?
Poverty is expensive due to the "poverty tax", the hidden, additional costs faced by those with fewer resources. For example, buying cheap products may result in frequent replacements, ultimately costing more over time. Without initial capital, necessities like a car or appliances are often financed at high-interest rates. Additionally, predatory practices, like payday loans and overdraft fees, disproportionately impact the poor. This creates a cycle where short-term budget solutions lead to long-term financial strain.
How does chronic stress impact people living in poverty?
Chronic stress in poverty creates a domino effect, impacting mental and physical health. Daily worries about paying rent or affording food lead to heightened anxiety and disrupted sleep. Such stress negatively affects decision-making skills and concentration, trapping people in survival mode. Unlike wealthy individuals, who can afford resources like therapy, gym memberships, or relaxing vacations, the poor must navigate life under constant pressure without relief.
Why is social stigma a significant challenge for people in poverty?
Social stigma adds a layer of emotional hardship to financial struggles. Facing judgment when using food assistance or being unable to afford social activities intensifies feelings of isolation and shame. The wealthy often avoid this scrutiny due to their financial freedom and societal privilege. For the poor, however, this stigma eats away at confidence and self-worth, further perpetuating the cycle of poverty.
Can wealthy people truly understand the realities of poverty?
While wealthy individuals can learn about poverty, fully understanding it requires experiencing its systemic and emotional impacts. Wealth creates buffers against daily struggles, like deciding between transportation or food. For someone who has never faced these challenges, it’s almost impossible to grasp the constant trade-offs, stress, and lack of choice that define poverty. Empathy, active listening, and systemic change are key to bridging this understanding gap.
What role does the system play in perpetuating poverty?
The system exacerbates poverty through inherently exploitative structures. For example, predatory lending models and employer practices often trap individuals in cycles of low wages and high debts. Overdraft fees and penalties disproportionately punish those already struggling. These systemic barriers aren’t accidental, they are designed to maintain economic disparity, benefiting those with wealth while keeping the poor trapped in survival mode.
Is it possible to break free from the cycle of poverty?
Breaking free from poverty requires a combination of personal resilience and systemic reform. On an individual level, setting small financial goals and improving financial literacy can help. However, systemic changes like fair wages, accessibility to education, and affordable healthcare are essential for sustainable outcomes. The author emphasizes that while individual actions are empowering, broader societal support is crucial for lasting change.
Why do former wealthy individuals often struggle more with poverty?
Former wealthy individuals may struggle more due to the psychological shock of losing their perceived safety net. Adjusting from abundance to scarcity requires a complete shift in mindset, which can be emotionally exhausting. Additionally, people accustomed to wealth might lack the skills and resilience needed to navigate poverty, like budgeting on tight constraints or making survival-based decisions. Their earlier privilege may blind them to systemic barriers.
What key lessons can entrepreneurs and business leaders learn from these insights?
Entrepreneurs can learn the importance of resilience, adaptability, and empathy. For example, understanding how to manage limited resources or navigate financial uncertainty can strengthen decision-making in business. Leaders should also cultivate empathy for employees and customers facing financial challenges, which can foster better workplace policies and customer relations. These lessons underscore that building long-term success often stems from understanding and addressing the struggles of those less fortunate.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.