Poverty, as a multidimensional phenomenon, requires an approach that simultaneously examines both its objective and subjective dimensions. This study aimed to conduct a phenomenological analysis of the lived experience of poverty and to explain the psychological mechanisms influencing individuals’ economic behaviors. The research employed a qualitative design using an interpretive systematic review approach. Data were collected through the analysis and synthesis of findings from previous qualitative studies in the field of lived experiences of poverty and analyzed using thematic analysis. The results showed that poverty is an existential condition characterized by four main themes: cognitive load, existential suffering (shame and humiliation), coping strategies (adaptation and resistance), and specific mental framing. Living in poverty, by creating constant livelihood concerns, drains a significant portion of individuals’ cognitive capacity (“mental bandwidth”) and drives them toward short-term decision-making. Furthermore, the experience of existential suffering caused by shame and social isolation explains seemingly irrational economic behaviors, such as conspicuous consumption, as a strategy for preserving dignity. The findings confirm that poverty is not merely an economic problem but a complex psycho-social issue that perpetuates its own vicious cycle through its impact on cognitive and emotional mechanisms. Therefore, successful poverty alleviation policies must go beyond financial support and focus in an integrated manner on three levels: material (ensuring economic security), psychological (strengthening psychological capital and reducing cognitive load), and socio-symbolic (combating social exclusion and restoring a sense of dignity). This study emphasizes the necessity of employing an interdisciplinary and human-centered approach in designing anti-poverty interventions.