The Poverty Mindset

We all recognize Hawaii as one of the most expensive places to live in the USA. Therefore, it's not surprising that someone making minimum wage cannot afford to live on their own when a studio in Honolulu starts at $1,000/mo.

• Poverty level: $6.70/hr. or $13,860/yr.

• Minimum wage: $10.10/hr. or $21,008/yr.

• Living wage: $16.03/hr. or $33,342/yr.

A recent article stated that renters need to earn $36.16/hr. to afford a modest two-bedroom. People are very upset and somewhat triggered but I think it's because:

1. They've made poor life decisions

2. They've succumbed to the poverty mindset

(3. They've voted for democrazy lawmakers who created the crisis)

First off, growing up in a rural area as a minority, I understand poverty quite intimately. I've observed that in many cases, people repeat the same mistakes that keep them in poverty from generation to generation:

A. Do not finish their education

B. Have children prematurely

C. Buy things they can't afford

D. Poor health from bad habits

E. Fail to plan

Most of these are obvious. It's worth pointing out that multiple mistakes can lead to a lifetime of poverty. For example, there's the stereotype of the local girl in her twenties who has one or two kids, finished only high school, and remains unmarried. Not only will she remain poor, it's highly probable that her kids will too.

Nevertheless, with grit, luck, and the right mindset, anyone can turn their situation around. Growing up, I was embarrassed at how frugal my parents were. However, when I look at the investments they made as an adult, I'm glad they chose to pay their mortgage early rather than leasing a new car. They didn't succumb to poverty as an identity and because their minds weren't limited, they were able to give me and my siblings immense opportunities for financial freedom.

In my line of work, I see the consequences of failing to adequately plan. In many cases when someone dies, families are shocked that simple end-of-life expenses can start at a few thousand dollars. Moreover, when the breadwinner of a family passes away, the loss in wages can drive them into dire straits. Simple planning, like buying a life insurance policy, can make all the difference.

We all know Hawaii is expensive. No surprise. We can either cry and give up or we can dig deep and propel ourselves forward. This is the much needed conservative mindset of Personal Responsibility wherein we take accountability and do not let our circumstances dictate our future.