Technically, “poverty” is determined by a calculation set up by the Federal Government measuring your family income against a poverty threshold.  What poverty means to most people is that you do not earn enough money to cover the basic necessities for yourself and your family.  This could be because of extra medical expenses, unemployment, an unexpected disaster (like losing your home to a fire), or other extenuating circumstances.  

Homelessness is a direct consequence of poverty.  The Federal Government generally describes homelessness as not having a place to sleep at night or sleeping in places that were not meant for human habitation.  It also includes people who are overcrowding homes owned by relatives or friends.

There are many factors that contribute to the rising poverty rates.  One is the economy; as jobs or salaries are cut more people are left without a good source of income for support.  People are forced to get jobs at a lower pay, without benefits or aren’t able to find jobs at all. 

Another factor is that, as city and federal budgets get tighter, public assistance funding is also getting cut leaving fewer opportunities for aid when people find themselves in financial crises.  As aid programs have to close for lack of funding, many families who may have just needed temporary assistance drop into more permanent debt and poverty. 

The last major factor that contributes to poverty and homelessness is the lack of affordable housing.  Housing and cost of living prices are soaring these days.  Affordable housing is defined as housing that does not cost more than 30% of your monthly income. 

Some other possible factors that contribute:

• Substance abuse and addictions
  When a person succumbs to an addiction to drugs or alcohol, unless they get help they will end up pouring a good portion of their income into the habits.  The consequences of the usage can also cost them their jobs and the support of family and friends.

• Mental illness
  Approximately 22% of the single adult homeless population suffers from some form of severe and persistent mental illness.  When people go undiagnosed or don’t have the resources to seek treatment, they often end up helpless, jobless and on the street.

• Domestic violence
  Nationwide, approximately half of all women and children experiencing homelessness are fleeing domestic violence.  Women and children are especially vulnerable because they may not have the resources to remove themselves from the dangerous situation.  Because they might fear being found, these individuals keep moving and fail to establish a home base.

• Lack of affordable health care
  Medical expenses for uninsured families can be so large that they can send anyone into poverty when a tragedy strikes.  A spouse or parent may die, leaving behind medical bills and no income.  For families who have a member that requires extensive medical care or constant medication poverty may always be just around the bend.

• Unexpected Disasters
  Sometimes life deals people a bad hand and leaves them in devastation.  Natural disasters like earthquakes, hurricanes, tornados, floods, can leave people without a home just as accidents like fires, robberies or other tragedies can leave people homeless or without resources.  These problems can send even the most stable families into poverty and homelessness.