I read somewhere that there&#x27;s also an issue with bulk purchasing. If you&#x27;ve got no money, you end up having to buy eg single cans of drinks instead of large bottles, small packets of washing powder, and so on for various ordinary items. That means you&#x27;d end up paying a lot more for a similar amount of stuff than someone who happened to have the money for the bulk.<p>The other end where it hurts is your ability to take risk. If someone low balls you on a job offer, and you&#x27;re flat broke, you don&#x27;t have any runway to find a better offer. You also can&#x27;t take a short-term mortgage (tends to be lower at the front of the curve) and will probably have to lock in a higher, longer term. You can&#x27;t hold a lot of investments because you&#x27;ll end up having to liquidate them at a cost. So you keep your money in cash or cash-like instruments and inflation eats a bit, too.<p>&quot;It&#x27;s expensive to be poor&quot; is actually a well known saying for good reasons.