[wenc]

I read this article 10 years ago by a guy named Ricky Yean who went to Stanford as an economically disadvantaged admit and couldn’t shake his poverty mindset and it cost him when he was running a startup.

Why “few successful startup founders grew up desperately poor”

https://rickyyean.com/2016/01/22/privilege-and-inequality-in...

Poverty mindset is maladaptive because it teaches you only money is worth anything, so you hoard it. But in truth time is also worth a lot and sometimes it’s wise to use money to buy time.

[steveBK123]

> Poverty mindset is maladaptive because it teaches you only money is worth anything, so you hoard it. But in truth time is also worth a lot and sometimes it’s wise to use money to buy time.

This is something I've observed in overly frugal family. Stuff/money is worth too much to them.

You can't gift them anything "nice" because they will put it on the shelf and never open it (don't want to damage it).

Gifting them consumables with an expiration date also doesn't work as they'll "save it" until the expiration date lapses and then eat expired food.

Taking them out is weird because they'll insist on taking leftovers home off every other persons plate at the table, including stuff they don't normally eat.

They'll fill up 2 bedrooms in their home with 40 year old cheap clothes & furniture that is worth so little we'll need to pay someone to haul it away. They won't donate it because they think the people who receive it will waste it. So they'll pay money to ship some of the 40 year old cheap clothing to poorer family back home who it doesn't fit and could just buy cheap clothes there with the money they paid for shipping.

Owning multiple 30+ year old cars until the mechanic literally refuses to work on them anymore telling you they are too rusted out to repair or drive.

This from people who are wealth enough to own multiple properties, have retired early, have government pensions, etc.

[glasss]

That's not being frugal, that's a hoarder mentality.

[oleggromov]

A deep and thoughtful piece, thanks for sharing.

I'm wondering at this point what are known methods of overcoming "mindset inequality". Any advice will be appreciated.

[rawgabbit]

I grew up poor. Everyone I knew was poor or barely getting by. It took me a lifetime to realize over-frugality can also be self-destructive.

My extended family members use to trade stories of working dangerous jobs or getting mugged and laugh it off. That was until my aunt got shot in the head working the late shift at a convenience store. She was in the news and the community and the hospital paid all her medical bills; but she was never the same after that.

Growing up gambling was a mysterious force that ran through my family. They worked hard. Like their bodies were physically wrecked and they saved and saved. They would often spend so much time at work or at their side hustles, they would neglect their children who would teach themselves how to cook because no adult was at home. And yet, they would blow their entire savings in a weekend in Las Vegas. Or sometimes came back even in debt.

Now, I would say that frugality is not a moral imperative. Being poor is not a virtue. Sometimes fate deals it to you. But no job is worth wrecking your health. And it is not a sin to spend a little on something that makes life a bit sweeter.

[oleggromov]

I appreciate your situation and opinion but I don't see how this is the answer to my question about mindset changes.

[koshergweilo]

Thanks for the article, I really enjoyed it!