The problem with this line of thought is that you're not really putting yourself in the position of someone who is in a state of poverty. In effect you're simply imagining yourself with (a lot) less money. the problem is that these people don't just lack money. They often lack social capital, confidence, intelligence, skills, competencies... you name it. I recently had the occasion to visit someone on a sink estate and see for myself how they lived. The inside of their house was almost unspeakably bleak and the sight (and smell) of it has haunted me for weeks. I read your advice - which I don't doubt for a minute is well meaning - and ask myself how the person I met could possibly implement it. How do you even begin to dig yourself out of such a hole? Another factor, which I believe has been well documented, is that long term poverty is knackering and undermines self-confidence - you're so busy trying to balance competing financial demands on your inadequate budget that the stress takes its toll and you simply give in.
As I say, this is not a personal attack. But I think it's important to realise that someone in long-term poverty is very different to you on a reduced income. Arguments about how we treat the poor and disadvantaged founder because they don't take this into account.