I think we have to establish what it means to "end up poor" in this context.
I'm barely living within my means. I have a decent house, a very nice car, a respectable gaming PC with VR, and recently got into hobby RC cars. I take at least one 1-2 week vacation a year out of state.
But...I have $0 in my savings account, and less than $50K in my 401(k). I'm 38 and only started contributing to a 401(k) 6 years ago after I finished my CS degree and started working jobs that pay decently.
But I also have $0 in credit card debt. I tend to spend all my extra money, but no further. I'm not taking on extra debt (Beyond my mortgage and car loan) to fund my activities.
Would you consider me poor? I am after all, barely living within my means. Because of my spending habits, I'm almost living paycheck-to-paycheck.
No, I wouldn’t consider you poor. But it probably wouldn’t take much for you to end up poor.
I know people who make more than $100,000 per year and have a net negative net worth and take on more debt every month. I would define them as “cash poor”.
Point being, these people end up poor when something unexpected happens, despite having made very good money for many years prior. They could have managed their finances better and weathered the storm.
Right. People who lived beyond their means and ended up poor.
Or are you saying if you once had money for these things, it's impossible to ever be poor again?