What are your biggest pain points with personal finance?

[Gailete]

No we don't live together. It's very weird how for some reason I ended up paying for their electric bill and they ended up taking care of my lawn.

The electric bill part is perhaps they are out of the country a lot prior to my first born so I had to take care of all the misc costs of maintaining their house while they were away. As for the lawn, I was taking care of it but they claimed they can find someone cheaper..and the cheaper person will only do both houses to get the deal..so they ended up picking up that tab.

I know in the American culture, everything is pretty clear when it comes to bills..but in the Asian culture not so much.

Didn't realize you were from a different culture. I realize that can make a difference. My father-in-law is a bit like your folks. Always wants to be the one setting things up AND collecting the money but I always feel like somehow we are getting screwed. The guy who shovels our snow usually comes before I am up in the morning so I gave my FIL the cash (the guy doesn't use banks) to pay him. The next thing I knew he was using the money to buy himself something at the store, and then he had the guy go do some extra work and in the confusion (for us) we ended up owing the guy money for something we hadn't asked him to do! This sort of thing used to happen all the time, but as we kept stopping them it has gotten better. But he would get mad every time we tried to break off these 'co-op' things. Like for us we run businesses from home so we need REAL invoices for bills, not something written on a piece of paper or card (which incidentally we never ever got to see the actual bill). Boy would he get grumpy. It doesn't help that we live right next door and he gave my husband the property our house is on. He and my MIL have a hard time remembering that it isn't their property or concern anymore.

[bjl584]

One of my biggest problems is parting with money that I set aside for particular expenses or emergencies. I guess it's a good problem to have, but it is annoying when I can't spend money for something in particular when I've taken the time and effort to save up for it.

[Gailete]

One of my biggest problems is parting with money that I set aside for particular expenses or emergencies. I guess it's a good problem to have, but it is annoying when I can't spend money for something in particular when I've taken the time and effort to save up for it.

Once I have money in the bank for anything, I hate taking it out even if for the very thing it was being saved for! The only time I didn't have a problem was taking out the money to go to our son's wedding.

[chanfest22]

One of my biggest problems is parting with money that I set aside for particular expenses or emergencies. I guess it's a good problem to have, but it is annoying when I can't spend money for something in particular when I've taken the time and effort to save up for it.

@bjl584 — what do you mean by this? Are you saying that when you save up money for a particular expense but then instead need to use that money for an unexpected emergency/expense then that is frustrating?

[disneysteve]

@bjl584 — what do you mean by this? Are you saying that when you save up money for a particular expense but then instead need to use that money for an unexpected emergency/expense then that is frustrating?

I think he meant that spending the money as intended can be difficult. When you have a saver's mindset, it can be hard to let go, even when it is for the exact purpose you were saving.

Example: This weekend I will pay fall tuition for my daughter. We have the money. We have saved specifically for that reason. But I still won't like sending off that $15,000.

[chanfest22]

I think he meant that spending the money as intended can be difficult. When you have a saver's mindset, it can be hard to let go, even when it is for the exact purpose you were saving.

Example: This weekend I will pay fall tuition for my daughter. We have the money. We have saved specifically for that reason. But I still won't like sending off that $15,000.

Ahhh, gotcha. Yeah, I don't like spending money either

[hehateme000]

My biggest pain is having a spouse that tells me she is down to save money and spend less, but then ends up not doing that. I am guilty of it as well, but I wish she was more financially savvy and cared a little more. Sometimes I need a little motivation.

The other pain is my fault - not including everything on a budget. I have improved my budget over the years, adding in bills that aren't every month but still need to save for them, and not too long ago I started putting rent as a bill by the 31st since if it were on the next months bills, I wouldnt know to have $1500 in the bank by the end of the month. One month I had $500 extra and then I looked at the next month and realized I didnt pay rent yet and so all of a sudden I was down $1,000. But one thing I have learned is that there are hundreds of expenses that come up without actually having a budget for it. I need to get better at having a Misc. budget for these things.

[Gailete]

My biggest pain is having a spouse that tells me she is down to save money and spend less, but then ends up not doing that. I am guilty of it as well, but I wish she was more financially savvy and cared a little more. Sometimes I need a little motivation.

The other pain is my fault - not including everything on a budget. I have improved my budget over the years, adding in bills that aren't every month but still need to save for them, and not too long ago I started putting rent as a bill by the 31st since if it were on the next months bills, I wouldnt know to have $1500 in the bank by the end of the month. One month I had $500 extra and then I looked at the next month and realized I didnt pay rent yet and so all of a sudden I was down $1,000. But one thing I have learned is that there are hundreds of expenses that come up without actually having a budget for it. I need to get better at having a Misc. budget for these things.

I have found that keeping spiral notebook with a page for each day of the month, divided into 4-5 paydays, helps me. I know when yearly specific bills will be due as at the end of the year I copy over all those onto the next year's notebook. So, the $500 business insurance in Feb. is never a surprise, nor is my husband’s life insurance policy due in November, nor the property and school taxes, etc. Then I write down the mortgage, health insurance, etc. under the payday date that they are due buy. So, if I have extra money for some unknown reason on some day when paying bills, I start paying the next weeks bills.

I started doing this over 20 years. While I could never follow a budget, this system works for me. The important things are taken care of, right down to car registration. I even write reminder notes in the month I must do something, like get a mileage reading on the car on 12-31 or 1-1 as I need it for doing taxes. I write little reminders about getting out car inspected when due (started doing that as I heard two guys at Taco Bell talking about getting their cars inspected and when I left, I checked and sure enough we were almost 2 months past our inspection time!)

Do I write done every little bit of money that we spend, not just the big stuff including utility bills and when credit cards were due and of course, for everything the amount to pay. I keep those notebooks and when I look back at a page from right around the time I was divorcing 'Mr. Big Bucks' (spent money like water) I noted that our credit card bills were around $1100/month! More than our mortgage! Must better to see thins how they are at this point. We are paying off credit card bills, but I see an end in sight.

Anyhow, I thought something along these lines would help you out so bills don't become surprises.

[Nutria]

The other pain is my fault - not including everything on a budget.

YNAB calls that "embracing your true expenses".

I have improved my budget over the years, adding in bills that aren't every month but still need to save for them, and not too long ago I started putting rent as a bill by the 31st since if it were on the next months bills, I wouldnt know to have $1500 in the bank by the end of the month. One month I had $500 extra and then I looked at the next month and realized I didnt pay rent yet and so all of a sudden I was down $1,000.

Make a check register spreadsheet that "looks forward" to the end of next month. Put in deposits (estimates, if you're hourly) for known future paychecks, and withdrawals for known future expenses on the days that they're due.

That way, you'll know exactly how much you'll have on any day up to 8 weeks in the future.

But one thing I have learned is that there are hundreds of expenses that come up without actually having a budget for it. I need to get better at having a Misc. budget for these things.

Like what?

[Gailete]

Make a check register spreadsheet that "looks forward" to the end of next month. Put in deposits (estimates, if you're hourly) for known future paychecks, and withdrawals for known future expenses on the days that they're due.

Boy would that ever make a mess of MY checkbook! It doesn't help that other than my SS and small pension check (both once a month deals) are the only regular income we have coming in. We earn money through the online business as well as hubby’s business, but we never know when those will hit. So, for me, better to schedule bills in a notebook to deal with as we can over the course of the month. This way nothing is a surprise, like those folks on Dec. 20 saying they don’t have food or presents for their kids for Christmas. With some creativity and thought throughout the year, you can provide a simple Christmas for your children and there is no need to boo-hoo about not having anything. I know at our thrift store that I love, volunteers get a certain amount towards merchandise for the hours that they work. A mom doing just a couple of hours each week for the year, can find some great items to ‘buy’ and use for Christmas presents and stocking stuffers. Not everything that ends up at the thrift store is used. Somethings are bought and never used. Regifting it, you would never know you hadn’t bought it at a store. There are other ways to accumulate what you need, but too many have gotten used to hand-out so they always have their hands out, instead of planning like all of the rest of us must do.

[Nutria]

Boy would that ever make a mess of MY checkbook! It doesn't help that other than my SS and small pension check (both once a month deals) are the only regular income we have coming in. We earn money through the online business as well as hubby’s business, but we never know when those will hit. So, for me, better to schedule bills in a notebook to deal with as we can over the course of the month.

The spreadsheet is nothing more than an automated version of your notebook.

However, our pay is pretty regular (me salary, and DW hourly but known minimum paycheck), so it might not be a perfect fit for you.

This way nothing is a surprise, like those folks on Dec. 20 saying they don’t have food or presents for their kids for Christmas. ... There are other ways to accumulate what you need, but too many have gotten used to hand-out so they always have their hands out, instead of planning like all of the rest of us must do.

Christmas Club to the rescue!!! (Ours incorporates birthdays, too.) A fixed amount goes in every month, and a (different) fixed amount is allocated to every event.

I understand that wouldn't work for someone who's income is highly variable.

[snafu]

I've tried different systems to eliminate 'pain points' which too often seem to be unanticipated expenses that I 'should/could have' addressed. What's mostly working is an end of the year review of 'where the money went!'

'Christmas fund' is a well known example of 'divide and conquer.' It's satisfying to see success by giving every dollar a 'job.' It's easy to follow success with success for all irregular expenses. By saving vehicle and house insurance premiums over 12 pay cycles, I've ensured the agent earns his commission by reviewing specifics with best price for adequate coverage in our region. Incidentally, it gets me a discount for one only pay, house & vehicles combo and 2% CC cash back.

I need to act instead of telling myself to contribute to a 'slush' fund cause there is always too much unaccounted net income.

Nothing like major medical issue to get retirement in focus. I'm reading, researching and learning. We've managed some important points, like being mindful of paying CCs by their due date, to avoid interest. As a retiree it's important to have completed your mortgage payments, launched your children in their own careers and clear loans.

The sales staff selling investments use Net numbers, you get a more realistic picture of needs using Gross operating figures.

[Nutria]

By saving vehicle and house insurance premiums over 12 pay cycles, I've ensured the agent earns his commission by reviewing specifics with best price for adequate coverage in our region. Incidentally, it gets me a discount for one only pay, house & vehicles combo and 2% CC cash back.

With Progressive, the semi-annual up-front discount is 22%!! That's a serious chunk of coin when you're paying for 2 teenagers in a high-rate state.

[Gailete]

The spreadsheet is nothing more than an automated version of your notebook.

However, our pay is pretty regular (me salary, and DW hourly but known minimum paycheck), so it might not be a perfect fit for you.



Christmas Club to the rescue!!! (Ours incorporates birthdays, too.) A fixed amount goes in every month, and a (different) fixed amount is allocated to every event.

I understand that wouldn't work for someone who's income is highly variable.

I have the only regular 'pay', plus income from my on line store which has been in the toilet for the beginning of this month. I checked a bit ago and my husband hasn't contributed anything into the coffers in 2 1/2 months, but he is at the tail end of a long term job that he will get a nice chunk of money when it is finished. So no way to try and track expenses in my actual checkbook - it would quite literally make things a mess. I developed the way I track bills back when married to Mr. Big Bucks when I had to be sure that I paid each bill by their due date and not miss anyone and pay one that was due later instead as there was nothing extra to pay the bills with if I paid the minimum on one that might be due 2-3 days after another one. At that point he was paid weekly and I got paid every 15 days. So I had to be able to see what I was doing. Now the bills are pretty stable but I do have to find time to get quotes for house and car insurance. Our car insurance especially seems a bit high for two old fogies that barely drive 5000 miles a year! Doing that sort of thing I hate as it means finding time to make the calls and then talk on the phone which gets painful if I am on too long.

I do have a Christmas Club as well, although if possible, I try to have presents before the check is due. I've used my 'Christmas club' money to replace TV's or other more expensive items at that point in the year, although the amount isn't that much.

Those that seem surprised that Christmas shows up again each year, are also the ones that you see if they managed to have a tree one year, it is out with the garbage later with the ornaments still on it! To me it is the same pain I feel when you see articles about new mothers who can't afford diapers for their babies or formula (what WIC doesn't supply) as if they have never heard of cloth diapers and breast feeding. All those cheaper ways to deal with babies needs that throwing money at them week after week. Even if they can do all of them, can't they do some of them?

[clatoden99]

I got a good job when I was 21. I used to see lot of material on personal finance but never took it seriously. I realizes it's importance when I was about 30. So I lost precious 9 years of creating wealth! This is my pain point in personal finance.

But I do not bother about it as I cannot turn the clock back. But good point is that I have learned a lesson and am doing regular investments in mutual funds and other assets. It's never too late.