What is the biggest financial problem people face?

[jamiesmoneyadvice]

Hi Guys-

I'm wondering what you think the biggest problem is that people need solved in their financial life? With so many out there, it's hard to tell which ones are the most common or biggest issues.

[rennigade]

This one is easy...most people live way beyond their means. They simply spend too much.

[disneysteve]

This one is easy...most people live way beyond their means. They simply spend too much.

This is definitely a big one and probably applies to the majority of people.

For the lower income demographic, however, I'd say the biggest problem is insufficient income. A lot of people simply don't earn enough to get by no matter how frugal they are or how carefully they manage their spending.

[Eagle]

Hi Guys-

I'm wondering what you think the biggest problem is that people need solved in their financial life? With so many out there, it's hard to tell which ones are the most common or biggest issues.

The biggest issue people face is typically one of two scenarios: internal (spending more than you make, not having an emergency fund, not budgeting, insufficient income, etc.) or external (serious health challenges, loss of a job, loss of a spouse, etc.)

[JonnyP]

Personal finance

Living beyond means and not valuing for money

[Fishindude77]

How about financial incompetence?
There are a whole lot of folks out there that would be broke regardless of their income level.

I really think money management should be a required course in the public school systems, years 1 through 12.

[snafu]

Another problem is total unawareness of so many people of interest rates they are being charged using revolving credit. With interest paid at about 1% for savers, interest on CCs can be as high as 22%. That's a crazy spread!

[ua_guy]

I think there's a spread of big topics that people really struggle with.

Basic money management is one. Learning what a budget is, and how to use one, and responsible and strategic use of credit.

Retirement planning is another. So many people are in dire straits when it comes to seeing life beyond work, and how to pay for it.

Another one is conceptual knowledge about how the economy works and how it pertains to their financial situation.

[AngelineRose]

This is definitely a big one and probably applies to the majority of people.

For the lower income demographic, however, I'd say the biggest problem is insufficient income. A lot of people simply don't earn enough to get by no matter how frugal they are or how carefully they manage their spending.

Location, Location and Location!

I fall in the insufficient income at the moment, but that was not always the case. Where you are located is a huge part with income/living ratio. The cost of living in the Bay Area has always been high but the recent Silicon Valley Boom, the cost skyrocketed by astronomical amounts. I was able to do fine for the last 18 years but now my income is suddenly no longer sufficient.

[myrdale]

My list:
1) Lack of income and savings - Immediately caused by the loose of a job.
2) Insufficient income - More a reference to poverty. A teenager working at McDonald's is fine, a husband and wife in their 20's or 30's with 5 kids need to look at a better career plan.
3) Living beyond their means - This affects people making $100,000+ per year just as well as households who only make $40,000.
4) Lack of savings - Caused by #3, and directly complicates #1.
5) Lack of retirement - Will lead to #2 when they retire.
6) Debt - Applies to or complicates all of the above.

And finally:
7) Lack of knowledge and understanding of finance / money.

[Tabs]

I'm going to say that we are our own worst enemy.

I think the hardest part in finances it getting people to be financially aware in the first place.

[devin89]

I think one of the biggest problems is that many people are still struggling with basic money management. Most employees do not have an emergency fund, they are uncomfortable with the amount of debt they have, and they don’t have enough of a handle on their cash flow to spend less than they make each month

[tripods68]

The biggest problem is DEBT and the use of CREDIT CARDS way too much without thinking about the future, or your family budget, marriage, and/or retirements. Majority of Americans try to keep up with the "joneses" and spend WAY too much. Its not the income so much its how much you don't keep after every pay check. You need to rethink your priority...think CASH! Live only what you can pay for in cash.

[Jsteinkruger]

There are many problems, but I think the biggest 2 that are the biggest hurdle after income would be the fight against yourself to say you do not need this, you just want it and the other would be, man my buddy John just got a new truck, maybe I should get a new one.

#1 Income
#2 Self Awareness
#3 Keeping up with the Jones
#4 Get away from a debit card and use cash/check so you know where you are on money at all times (I FAIL AT THIS ONE)

[scfr]

The biggest one I see is denial.