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Old 07-24-2017, 05:39 PM
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Post What are your biggest pain points with personal finance?

What are your biggest pain points with personal finance? What problems do you have that you wish someone would solve?

Some of mine are:
- Splitting recurring expenses with roommates (e.g. rent, utilities, internet, etc.)
- Figuring out how to invest my money and how much to save
- Figuring out what to put into retirement savings (e.g. 401k)
- Setting up a budget and adhering to it
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Old 07-24-2017, 06:07 PM
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I hate being responsible/overly conservative then watching other people go through life without a care in the world in regards to personal finance and saving for the future.

expenses are everywhere and "people" are out to separate you from your hard earned money (think home projects and even investing if you don't know the ins/outs).
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Old 07-24-2017, 06:11 PM
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Originally Posted by chanfest22 View Post
Some of mine are:
- Splitting recurring expenses with roommates (e.g. rent, utilities, internet, etc.)
- Figuring out how to invest my money and how much to save
- Figuring out what to put into retirement savings (e.g. 401k)
- Setting up a budget and adhering to it
The first one only applies to folks in that situation, but I'd say the other 3 are pretty universal.
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Old 07-24-2017, 06:13 PM
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Originally Posted by Jluke View Post
I hate being responsible/overly conservative then watching other people go through life without a care in the world in regards to personal finance and saving for the future.
I can't say I hate it, but it certainly irks me at times. But I do my best to remind myself that I'm the one with the big bank account, very little debt, and a solid financial future and retirement ahead of me. The folks I'm surrounded by are buried in debt and have little to nothing to their names.
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Old 07-24-2017, 09:21 PM
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Originally Posted by chanfest22 View Post
What are your biggest pain points with personal finance? What problems do you have that you wish someone would solve?

Some of mine are:
- Splitting recurring expenses with roommates (e.g. rent, utilities, internet, etc.)
- Figuring out how to invest my money and how much to save
- Figuring out what to put into retirement savings (e.g. 401k)
- Setting up a budget and adhering to it
I learned the hard way, that having a spouse with no money sense was my biggest pain, followed by a spouse that didn't want to include me in any sort of planning financially.

Setting up a budget of any kind is difficult when you have a tiny income and no way to budget for all the necessary categories. So you have to pick the most important things, even if it means no saving and no retirement funds, etc. at the beginning. And then obviously finding a way to make more money.
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Old 07-24-2017, 09:23 PM
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Not really a pain to me but I just want to do it at an earlier age. I hope that everything has been put into place before I retire. So these are the things, I usually thought about:

- Figuring out how to invest my money and how much to save
- Figuring out what to put into retirement savings
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Old 07-24-2017, 09:50 PM
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This is a good, challenging question for folks in these circles... Thanks for bringing it up.

What's tough? Impulse control, both positive and negative. Sometimes (like right now), I really, really want to pull the trigger on a major bathroom remodel (likely $20k-$30k), with scarcely above that available in my taxable account. Other times, I really, really want to strip our expenses to bare bones & just horde 70% of our income. As is so often the case in personal finance, a middle ground is most often the best choice.

Ignoring the financial talking heads & staying the course is also a challenge. I read alot of news articles every day, including financial news, so I'm constantly exposed to opinions saying everything from "the market's going to crash!" to "buy XXX stock while it's still at historic lows!" or "buy real estate it's a sure thing!" I have my investment plan, and I more or less stick with it, but it's often very tempting to make changes that probably are neither needful nor wise. I suppose this goes back to my first on point, though... Impulse control is tough.
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Old 07-25-2017, 05:59 AM
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My biggest pain is not able to talk with many about saving/ investing getting out of debt etc.
If you chat on some forums or with other savers they always seem to tell me I am doing it WRONG ( not THEIR way) or have to one up me on any progress...
on the other side if you talk with others not saving in debt etc, they sometimes show interest but then zero follow through............. then if you have made that mistake of talking with them they now see you as a loan outlet. No I do not share real info but they know I am frugal so I must have cash to lend them for their next crisis.

After watching some make some very odd moves I lose a lot of respect for that person. I have recently walked away from some friendships because who they are becomes clear by their actions or priorities.
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Old 07-25-2017, 06:19 AM
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My biggest pain is not able to talk with many about saving/ investing getting out of debt etc.
Agreed. That's why I love this site so much. It's the only place where I can ask questions and get intelligent answers, share my successes without people thinking I'm bragging, and offer advice to others who actually appreciate it.

Not having people IRL to talk to about financial stuff is a challenge.
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Old 07-25-2017, 07:56 AM
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I have recently walked away from some friendships because who they are becomes clear by their actions or priorities.
If 'friends' only like you for what you can give them, then they aren't friends in any sense of the word. Hard to understand those folks that want money from you because you are frugal and making fun of you at the same time. However, you won't catch them being frugal.

When I see snippets on the news about those highly, ridiculously highly paid ball players of every sort, spreading their money around like water, then they blow out their knee or shoulder and the next thing you know they are just about ready for bankruptcy. If they had taken that first $1,000,000 and set it aside, even in a conservative investment and then 10% of everything they earn thereafter, they will have money for a decent middle-class life (if needed) for the rest of their lives. All those guys need to be set down and have the facts of financial life explained to them. Instead they learn about financial pain after they have wasted all their money.
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Old 07-25-2017, 08:00 AM
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Originally Posted by Maxgam View Post
My main problem: I can not select a source for the diversification of investment channels, so often the money is out of work
if I'm following along that this is specifically "stock" related, diversification of investments doesn't mean having numerous investment funds... simply investing in a total US stock, total international stock and a total bond fund will give you all the diversification you could possibly need.

Now, if you want to own other funds, that is called tilting.

so is there anything we can do to help?
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Old 07-25-2017, 09:10 AM
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I really appreciate having the safe haven of SA to express financially related ideas without repercussions worse than being 'flamed.' I'm ok with income stream, long term retirement and taxable investments which have become too profitable to change.

I've decided market timing is worth the risk and will increase holdings via a gold ETF, July to October because the technical charts favour it just now.
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Old 07-25-2017, 10:54 AM
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I'm going to go with impulse control as well. Or I see others splurging on different items or updating house projects and I get envious and start looking for DIY projects/updates as well.


This year I've been spending more loosely since I'm on track for my savings goals based on %. But when it comes buying "want" items, I still over analyze if I really should buy, or try to find the best deal online.
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Old 07-25-2017, 05:20 PM
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Because retirement is looming a bit closer on the horizon, the big questions that cause me the most consternation are:
- How will I know if DH & I have saved enough & have enough to last us for the rest of our lives?
- What will be a initial safe withdrawal rate for us?

What I am starting to figure out and come to terms with is that there is no perfect answer for either of these questions. There have been no guarantees in my life so far (financial or otherwise), so why should I expect that suddenly, when I hit retirement age, answers with guarantees attached to them will magically appear. They won't. All I can do is come up with the very best educated guesses that I can (and I think I have already done this though I try to learn more), make a plan (done), and work the plan (doing).

P.S. chanfest22, I find it interesting that you asked what problems we wished someone would solve. When it comes to our finances, isn't it up to us ourselves to do the solving?
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Old 07-25-2017, 06:59 PM
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P.S. chanfest22, I find it interesting that you asked what problems we wished someone would solve. When it comes to our finances, isn't it up to us ourselves to do the solving?
I initially started to answer that question as well, but I wasn't able to think of anything, because most strictly financial things, I honestly prefer to handle myself (Okay, except for anything to do with any sort if insurance, I hate dealing with that)... Now, other things in life, I'd be thrilled to have someone else do (like keeping the house clean). But while such outsourcing would have financial consequences, I didn't see them as within the scope of the question.
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Old 07-26-2017, 10:29 AM
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Originally Posted by scfr View Post
P.S. chanfest22, I find it interesting that you asked what problems we wished someone would solve. When it comes to our finances, isn't it up to us ourselves to do the solving?
@scfr — thanks for sharing this information! What I meant by the question are if there are any tools that one could build to help you answer these questions. As you mention, there probably isn't one perfect answer, but perhaps there may be a tool or service that could help you understand how much you should save for retirement to be comfortable and how much you can expect to withdraw without running into problems, etc. Does that make sense?
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Old 07-26-2017, 10:35 AM
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Originally Posted by chanfest22 View Post
@scfr thanks for sharing this information! What I meant by the question are if there are any tools that one could build to help you answer these questions. As you mention, there probably isn't one perfect answer, but perhaps there may be a tool or service that could help you understand how much you should save for retirement to be comfortable and how much you can expect to withdraw without running into problems, etc. Does that make sense?
All of those tools already exist. The internet is full of retirement calculators, savings calculators, retirement spending calculators, and more. I can't think of any financial tools that aren't readily accessible.

Why did you start this thread? Is there some service that you're here to promote?
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Old 07-26-2017, 10:41 AM
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Originally Posted by disneysteve View Post
All of those tools already exist. The internet is full of retirement calculators, savings calculators, retirement spending calculators, and more. I can't think of any financial tools that aren't readily accessible.
I understand that a lot of retirement calculators exist already. Yet I keep hearing from folks (including on this thread) that they are unsure how much to save for retirement, how much to withdraw, etc. So I'm not sure if people lack awareness of some of these tools or if the tools are simply not meeting peoples' needs. Do you have any insight on this?


Quote:
Originally Posted by disneysteve View Post
Why did you start this thread? Is there some service that you're here to promote?
I'm trying to understand what kinds of problems people are facing with regards to personal finance. No service to promote
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Old 07-26-2017, 10:45 AM
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Originally Posted by chanfest22 View Post
I understand that a lot of retirement calculators exist already. Yet I keep hearing from folks (including on this thread) that they are unsure how much to save for retirement, how much to withdraw, etc. So I'm not sure if people lack awareness of some of these tools or if the tools are simply not meeting peoples' needs. Do you have any insight on this?
I think the problem is that any calculator or planner involves making assumptions, some pretty significant assumptions. Nobody knows what the future holds. Will you live to be 70 or 82 or 97? Will Social Security continue to exist in its current form? When will the next bear market strike and how bad will it be and how long will it take to recover? How much will my house sell for 10 years from now? What's going to happen to health insurance in this country?

There is no possible tool that can answer these questions. Yet it is those answers that are truly needed to know how much you need to be adequately prepared. Short of that, we all just have to save as much as we possibly can and hope for the best.
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Old 07-26-2017, 10:59 AM
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I think the problem is that any calculator or planner involves making assumptions, some pretty significant assumptions. Nobody knows what the future holds.
I see, that makes sense. So if I am understanding you correctly, the existing tools out there are as good as they can be given the information available today?
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