When income does not fully cover even daily necessities, everything else becomes a luxury. Thus there are a great many things that the poor cannot afford to buy. Tools, materials, and upkeep for income-generating assets like transportation or farm equipment are all expenses that are routinely left out of the family budget. To cover gifts, dowries, and funerals— expenses at the heart of many social structures and customs—the poor must often sell what little land or livestock assets they have (Narayan et al. 2000a:149-150). Furniture, stylish clothing, or appliances—all items taken more or less for granted in the developed world—are largely an extravagance. Investments in hard assets or insurance to cushion against future hardships are even more difficult to afford. With no insurance or provision for emergencies, an already marginal income becomes an even more precarious foundation for the future.
Poverty often means not being able to take advantage of opportunities and investments that are open to others with more secure incomes. Education is a good example. Although the benefit of an education can dramatically increase a child’s chance of leaving poverty, a poor family’s budget does not always permit this. School costs can include tuition, supplies, and the loss of labor that the child could have contributed had he or she stayed home (Narayan et al. 2000b:242-244). Other investments that require savings or start-up capital are also out of reach, such as launching a small business, buying fertilizer or a fishing boat, or advertising to reach a wider market. Lacking such investment ability, the poor are often confined to subsistence activities and low-value wage labor that make it hard to get ahead.
