Portfolios of the Poor Book Summary - Portfolios of the Poor Book explained in key points
Listen to the Intro
00:00

Portfolios of the Poor summary

Daryl Collins, Jonathan Morduch, Stuart Rutherford, Orlanda Ruthven

How the World’s Poor Live on $2 a Day

3.3 (21 ratings)
10 mins
Table of Contents

    Portfolios of the Poor
    Summary of 4 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 4

    Though lacking a stable income, those living in extreme poverty have strong, effective money management skills.

    When we hear about people living in extreme poverty – subsisting on a meager $2 a day – it’s easy to assume that they’re leading the toughest lives out there. And this is only the first assumption we tend to make about the world’s poorest people.

    We also often assume that people with little money spend any and all cash as soon as they get it. But that’s not true. People living on an average of less than $2 a day usually set aside a small amount of savings – a nest egg for covering unforeseen expenses and tiding over periods without income.

    For instance, Hamid, who lives in Bangladesh, always keeps a little cash on him for emergencies, stashes enough money at home for food and also puts aside the necessary amount for making improvements to his home.

    But since most of the world’s poorest people are illiterate, they keep track of and manage their finances through oral communication with their friends and families. For example, a husband might tell his wife that he’s trying to save money for their children’s school supplies, and that he’s going to take a job at a local store to earn some income and borrow the remainder from their neighbor. Now that she knows his plan, the man’s wife can remind him to stick to his commitments.

    In fact, the ability to manage money in such ways is absolutely key for extremely poor people. Because their income is usually irregular, paying back loans is a real difficulty. For instance, farmers earn practically all their yearly income during two or three peak months of harvest and virtually nothing for the rest of the year. Naturally, it’s difficulty for them to stay on top of monthly payments during periods of low-income, a fact that makes good money management vital to their success.

    Want to see all full key ideas from Portfolios of the Poor?

    Key ideas in Portfolios of the Poor

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is Portfolios of the Poor about?

    Portfolios of the Poor (2009) details the creative financial strategies that the world’s poorest people use to get by. These blinks explain how people with no educational background whatsoever manage their finances.

    Who should read Portfolios of the Poor?

    • People who want to understand the realities faced by the world’s poor
    • Those seeking productive ways to end poverty

    About the Author

    Daryl Collins is the senior associate at Bankable Frontier Associates in Boston. She was responsible for organizing the latest version of the financial diaries in South Africa and holds both a B.Sc., and an M.Sc in Economics from the London School of Economics.

    The other three authors, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, are all experts in economics with international experience, primarily in microeconomics.

    Categories with Portfolios of the Poor

    Books like Portfolios of the Poor

    People ❤️ Blinkist
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked

    Start growing with Blinkist now
    28 Million
    Downloads on all platforms
    4.7 Stars
    Average ratings on iOS and Google Play
    91%
    Of Blinkist members create a better reading habit*
    *Based on survey data from Blinkist customers
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,000+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial