Roadblocks in Personal Finance

**creditcardfree** · 02-01-2014, 08:47 AM

I think one road block for many Americans is simply the lack of financial knowledge. They don't know how interest works, or how credit scores are calculated, for example. I feel we have been able to move forward financially because I have the interest to seek out that information, which likely started in college when I picked Finance and Banking as my major.

**hamchan** · 02-01-2014, 08:53 AM

Medical issues. Not only is it really difficult for a middle class family to pay extensive medical bills years after year, but it really affects your earning ability as well.

**agarlits** · 02-01-2014, 10:35 AM

Originally posted by creditcardfree View Post

I think one road block for many Americans is simply the lack of financial knowledge. They don't know how interest works, or how credit scores are calculated, for example. I feel we have been able to move forward financially because I have the interest to seek out that information, which likely started in college when I picked Finance and Banking as my major.

I completely agree with that, my personal motto is "the only way to make an educated decision is to educate yourself", I don't have a college degree in banking or finance. But I have worked in the field and continuing financial education is my most prevalent hobby.

**agarlits** · 02-01-2014, 10:37 AM

Originally posted by hamchan View Post

Medical issues. Not only is it really difficult for a middle class family to pay extensive medical bills years after year, but it really affects your earning ability as well.

This is a very valid point, medical bills can snap a budget in half and leave you wondering what to do next in the blink of an eye. The worst part is there is no way to accurately predict when or if something will happen. Do you think that the passage of the affordable healthcare act will have an impact on this?

**Goldy1** · 02-01-2014, 10:39 AM

I think people think little things don't count. Oh this 10 buck scarf is on sale so 10 bucks won't set me back. It's just ten bucks. Well if you don't need it don't buy it. For us, lots of little savings add up to big.

**agarlits** · 02-01-2014, 10:46 AM

Originally posted by Goldy1 View Post

I think people think little things don't count. Oh this 10 buck scarf is on sale so 10 bucks won't set me back. It's just ten bucks. Well if you don't need it don't buy it. For us, lots of little savings add up to big.

Very good point, I know impulse buys keep a lot of people from being able to get to where they want to be financially. In the end its all just stuff, how nice of a TV you had in your 30's doesn't matter when you 67 and out of retirement money.

**hamchan** · 02-01-2014, 12:26 PM

Originally posted by agarlits View Post

This is a very valid point, medical bills can snap a budget in half and leave you wondering what to do next in the blink of an eye. The worst part is there is no way to accurately predict when or if something will happen. Do you think that the passage of the affordable healthcare act will have an impact onthis?

It will make a small difference for us, but realistically when you're meeting your out of pocket maximum year after year with no end in sight, it's just going to be a huge hardship for most families no matter what. The one area where it's already making a difference for us is with copays. Prior to this year copays were not included in our out of pocket maximum. So even after my husband's hospitalization early last year, which met his annual out of pocket maximum, we still had to pay copays for every single office visit, which there were many of. So even though his out of pocket max was 4000, we wound up paying around 6000 out of pocket. That was just for him. We had to pay another 1000 or so for my care, which did not even meet the deductible. And we pay 400 a month in premiums.

**kyoko** · 02-01-2014, 01:46 PM

Some circumstances and lack of financial knowledge certainly contribute building the roadblocks and barriers. But in my opinion, the major problem is between our ears... our own mind.

Our mind is really powerful - we can manifest our thought into reality. What you think will eventually become reality and create those obstacles in our lives that hinder us from achieving our goals.

So if there are any deeper issues (and I believe most of us have one or two) that are not completely resolved, your thought about those issues will sabotage your actions and you would end up where you started.

**snafu** · 02-01-2014, 02:27 PM

Clever marketing has women treating shopping as entertainment. You see it, you like it, you deserve it. No money.. no problem, put it on plastic. The 1st thing the salesman asks is 'what monthly payment can you manage?" Even worse they say..."aw, you can manage $ 100. per month, yadda yadda.' Shouldn't the question be 'how many hours do I need to work to buy that item? How much will interest add to the cost?"

Advertising has people believing if they drive a new car, wear brand names apparel and eat in popular restaurants they'll automatically be happy just like the actor in the commercial or ad.

**Goldy1** · 02-01-2014, 02:44 PM

Our personal roadblock has been my husband not getting raises at work. He started in low 20's an hour in about 2000. The company doesn't give raises. They guys have had one in the past ten years.
He is a skilled cad cam worker for an autosupplier.
They just don't give raises. He's had one in ten years.
How do we get ahead when prices go up and raises are not there? WE did it by saving, but we'd save more if he got raises.
Solution would be get a new job.It's complicated. He's in early 40's now(a few years older than me) and has a comfort level at work and likes his job a lot so he stays.
They also do not contribute to 401K
DEspite this, we've done fine.
Our house and cars are paid off and we have an emergency fund.
Retirement? Not sure when that would be.

I have a degree in teaching. It's been a roadblack. Job market saturation. Lack of jobs(if you don't move)"ve taken lower paying jobs to help through the years.
I told my husband I feel bad I don't make more money for us, and he said I help us by not going out and spending a lot, and looking for deals for us. lol He's right.
I guess you have to figure the best will rise above it.
I feel bad for medical expenses.
We've never really had any over a few hundred a year. Been healthy so far but that can change. We do pay a little out of pocket to help pay for our medical insurance thru employer. It's good coverage.

Roadblocks in Personal Finance