Biggest Barriers to Financial Freedom?

[james.hendrickson]

Hi Everybody.

One of my biggest passions is building wealth. It seems like its gotten harder for Joe and Jane average to get ahead, but some people have been really successfully financially, so if you'd take a minute to share what your biggest challenge has been, and perhaps how you overcame it, I think the Saving Advice community could find it really valuable.

[bjl584]

Probably learning to be patient for things. Taking the time to save up for a purchase, do my research, and shop around for the best deal.

[scfr]

My biggest challenge was a lack of knowledge about financial matters.
How I worked to overcome it: http://scfr.savingadvice.com/2008/01...-in-my-_34655/

That blog entry was 8-1/2 years ago! Many things have changed since then. I'm still learning, working, improving.

[GoodSteward]

I'm still at the bottom of the wealth building tree, but I'm on my way. I am still hoping for an opportunity to invest into a business or product at some point when I build up enough capital to do so, but in the mean time I try to strike small deals as I can.

I think my biggest obstacle has been as mentioned above, the lack of knowledge when I was starting out. I got a credit card at 17 (co-signed by parent) to get my credit going. I made the mistake of asking if I needed to use it or not. The reply that for years kept me under burden was "you need to have something on it to show you're using it." I never remember hearing I needed to pay it off, but I need to show a balance which I thought meant carry a balance. I actually still have the very first thing I purchased on a credit card 15 years ago(some Klipsch computer speakers that I still use. That choice eventually lead me to another card, and another, and another. Maxing them all out. I've mentioned before my eventual fall, but I have now been researching and learning for years how to do money right.

I will not repeat what happened to me to my kids. They are learning money properly, and I evangelize all the time the power of compound interest and investing early to younger people. I hope someone is listening.

[sv2007]

IMHO, the biggest barrier is focusing on the small gains but missing the big ones.

This includes more than just money; even in the recent discussion about college; the small savings in college time/tuition can cost a lifetime of increased earnings and advancement, for example.

Focus on the big stuff, don't sweat the small stuff too much.

[Singuy]

I would say the biggest barrier is content with the amount of money you make that allows you to get by. This last part is key..everyone wants to make more money..but the fact that yourself or your family is getting by really dampers that ambition.

If the lifestyle doesn't change, how much you make/day is the single biggest contributor to the time you reach FI. I would say anyone can reach FI, but it's a matter of how fast that matters(or at least in my opinion). Reaching FI in your 70s is great...but you can no longer move..so congrats?....

[creditcardfree]

The inability to say no to purchases you can't afford and don't need. If you are spending more than you earn or even most of what you earn, you won't be able to accumulate the wealth that is needed to be financially free.

[Jluke]

The "system" is designed to not allow savings. From advertising to free money (loans/credit cards) to basic needs that can be expensive (housing, cars, medical, raising kids, etc). This makes it very easy to setup the consumer for failure especially since there is poor financial education of the general public.

The real goal is to get as much $$ out of the consumer. Bury them in debt early on and hope the debt compounds itself over time.

I think people also do not believe financial independence can happen so they don't really bother to pursue it. They see everyone else doing the same and figure this is the norm

[GoodSteward]

The inability to say no to purchases you can't afford and don't need. If you are spending more than you earn or even most of what you earn, you won't be able to accumulate the wealth that is needed to be financially free.

Since your cash flow is the only tool most people will ever have to build wealth, this is probably the biggest reason most people DON'T build it. They are "investing" into mess today so they can't invest into anything tomorrow.

[97guns]

the biggest barriar to financial freedom is making all the sacrafices of not spending money. if you make the commitment to save early then you can spend in your later years. i went through a period of 15 years where all i did was work and come home to sleep and eat, my personnal life suffered from this but it set me up for today

[phantom]

How do you define financial freedom? The definition that comes to mind for me is the one Joshua Sheets of Radical Personal Finance uses in his Seven Stages of Financial Independence: You’ve built your investment income to a point where it funds your current lifestyle expenses and any desired lifestyle goals as well.

For me, the biggest barriers to getting there are time, an abundance of stretch goals, and a bit of indecisiveness. Given enough time, I'm on pace to accumulate a good bit of money. But, I struggle with defining enough and choosing a path that I can enjoy in the present that will lead me somewhere I'd like to be in the future.

[MonkeyMama]

I think that attitudes and preconceived notions are the biggest barriers.

We spent our 20s/30s doing everything that was supposed to be "impossible." It's impossible to go to college debt-free. It's impossible to buy cars without debt. It's impossible to have kids young and be well off financially and make time for your kids. It's impossible to find work that you like and pays well and is fulfilling. On and on and on. I've often felt like I must come from a different planet. I never got the memo about any of this. Phew!!

[LivingAlmostLarge]

Just learning to be happy with what you have. More money doesn't make you happier.

[Tabs]

One of the biggest barriers that has yet to be mentioned is when your close friends or family does something really financially stupid. Then they come to you to help them somehow.

I've always handled it the best I could with my financial hat on. That usually translates to a lot of No's, and I've also advised others in similar situations to do the same.

That said though, it still doesn't make these situations any easier when you do personally care about them.

[Outdoorsygal]

Medical/Health costs