Most Challenging Obstacle in Personal Finance.

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jeremymday
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Post by jeremymday »

What have you found to be the most challenging obstacle in your personal finance journey?
What was the hardest goal to achieve?
Is there really anything hard about personal finance if you are following a solid system?


4444
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Joined: Sun Nov 21, 2010 12:01 am

Post by 4444 »

I think for me socially it's an issue. I mean for some of my extreme ideas people look at me and ask me if I am mentally okay. For instance, I think living in a van and getting a gym membership would be a great idea for someone who wants to move swiftly towards their independence. Once you have all this freedom and you are living your life, who is out there who isn't in the "matrix"? I worry that I am grasping for too much too soon...especially as an almost 22-year-old. Maybe I am greedy? Should I be more altruistic? Should I be moving more slowly and just be "normal" and relax? Is everyone on this forum striving for too much to control their lives and should just relax and go with the flow?


ICouldBeTheWalrus
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Joined: Tue May 31, 2011 3:00 am

Post by ICouldBeTheWalrus »

For most people, I think the most challenging obstacle is the constant advertising messages that they will be happier, more popular, etc., if only they spend money acquiring things.
Personally I haven't found it that difficult, I stopped having a regular source of TV (aside from the occasional DVDs and such) several years ago. Also, I never quite outgrew the college student mindset of not having much money and needing to consider purchases as if money is scarce.
For me, the biggest challenge in the past was not overspending when I first started having a significant salary and lots of credit. I had to learn my lesson the hard way, having credit card debt for a few months.


dragoncar
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Post by dragoncar »

4444, I think this tends to be extra hard for certain personality types. Living in a van will severely limit your social options -- mating, friendships, etc. Certain personalities (us) may not worry too much about this -- we don't depend on the constant approval of others. But I think many people out there (particularly the ones giving your strange looks) can't fathom the alienation that will occur... I think you can still integrate sufficiently in a van, but I think SOME alienation is inevitable.


HSpencer
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Post by HSpencer »

Dragoncar pretty well says it when "not depending on the approval of others". I think this very factor is one of the most vicious enemies of many people. Let's say your obstinate brother in law goes out and buys a new vehicle, say a new Toyota Highlander or similar. The first thing he does, with wife and kids in tow, is drive it straight to your house. Now a stable individual, like those of the mind on this forum, would be pleased the bother in law had upped himself and family towards a new car. However, many people would find this a declaration of war. "I don't like that SOB anyway, and now he comes with his new car and shoves all this down my throat". Their thinking is skewed, of course, but unfortunately that is the way some reason it. So now you have to go for the expected "ride" in his new car, and in doing so you pass the excellent, but five year old Honda you and your family drive. You immediately notice the dent in the rear door that you knew was there, but were not concerned with. Now you smell the leather and see the shine on his Toyota, and it has all those bells and whistles, and yours does not. After they leave, with you feeling "lesser" you turn to your wife and tell her your trading for a new Toyota Sequoia, and (1) "you don't care if it hairlips every cow in Texas, and (2) you don't care if it bankrupts your financial plans that you have worked so hard to achieve".

You just cannot and will not let that arrogant SOB get a leg up on you.

Yes this is pretty crazy, but it is the operational posture of a lot of people. You have seen it time and again. If you have a cheap flip phone, and here comes someone near and dear to you with a Turbocharged Smart Phone that lets you download the national debt and the latest sports scores in a swish of your finger, then you just somehow are not successful (like "they" are). On the brother in law, no matter that he is losing his proverbial backside on the car trade. Not mentioned at your house, was it? On the smart phone, no comments as to the $250.00 a month "friends and family" bill. They did not talk about that part. These show offs are committing financial suicide, but in your jealousy you don't consider that. You only see your somehow "behind" and losing ground towards your peers.

OK, thank goodness we on the forum have overcome all that. Our success IS our financial plans and future. And, we are smart enough to always keep that in mind.


44deagle
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Post by 44deagle »

getting rid of my vehicle... the climate I live in makes it almost impossible.


Maus
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Post by Maus »

@HSpencer

I've got the opposite problem WRT cars. I just learned last night that my brother (not an EREista by any stretch) sold his VW Passat and went carless, beating me to the punch. Apparently he wasn't willing to pay the metered parking in his S.F. neighborhood and the city didn't make residential permits available because it's too near the ballpark.
Now I have no excuses. If he can operate as a professional (banker) without a car, I certainly ought to be able to do it, too. Wonders never cease.


HSpencer
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Post by HSpencer »

@Maus
There is a lot of commenting on the forum about vehicles. I would guess I am one of the personages who constantly bring up this subject. I read about people living in large metros who either pay big bucks to park their ride, or have big hassles with that, or maybe even live where there is no place to park a vehicle. I have visited these places and often thought about the difficulty of such. In London, for example, I often saw vehicles with wheel locks applied to them for parking at the wrong time in the wrong spot. In other places I have worked or visited, I saw people who had to keep a time schedule and go and move the vehicle from one side of the street to the other, ie: street sweeping, or simply you can't park there for whatever reason. These are places I would try and do without owning a car of any kind, if I were forced to live there. There are even books written on "How to Live Without a Car". All this is foreign to me, in total. I will not have a vehicle when I or my wife are no longer able to drive one.

So to my extreme, I have three vehicles at present and in the past have had four or five. I have always toyed with building custom Mustangs and Conversion Vans and Trucks, and I have the shop facilities and about four acres to park any and all vehicles on. I am, as I age, getting down to two vehicles, an SUV (soon to be a Honda Pilot bought new to replace our current 2003 Tahoe--if it EVER wears out), and my Chevy Silverado 4X4. I will probably pay about $32,000 cash for the new Pilot, and will sell the Tahoe myself, which will have about 125,000 miles on it.

I am someone who drives quite a bit as I am fully retired and like to make trips here and there. I am also someone who drives a 120 mile round trip on Sunday to go to church. You may ask "why" do you drive a 120 mile round trip to church once a week? Simple, the church I want to attend is 60 miles from my house. The alternative would be to move to the city where the church is located, which is not something I want to do. So if I attend that church, I will drive the distance. Not that I go "every" Sunday, as things can come up to prevent it.

I said all that to say this: Some people can arrange to go vehicle-less, and some can't. I think it would be great if one can arrange one's life to enjoy the deleted expenses of vehicles. I can see it as a possibility for those so situated to accomplish it.


Maus
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Post by Maus »

@HSpencer

I totally understand the 60 miles to church. Some years ago I made a 30 mile trip to the church I favored. Of course, gas was a bit cheaper then; but it still showed a certain commitment to good preaching. I cannot abide a bad preacher; and when you've been in the "business," as I was, too many preachers don't cut the mustard.


George the original one
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Post by George the original one »

The hardest thing in personal finance is not getting distracted by temptations from a goal that is several years away. It's human nature to look at our current position and say, "hey, I'm pretty close now, so I can let up".


JohnnyH
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Joined: Thu Jul 22, 2010 6:00 pm
Location: Rockies

Post by JohnnyH »

My submission for least expensive car to own/operate:

http://victoria.en.craigslist.ca/cto/2562595300.html (example of a better one, asking way too much 2.5k more realistic, but note near 30mpg)
Registration very cheap, slant 6 well respected engine, easy to work on and cheap parts.


akratic
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Location: Boston, MA

Post by akratic »

The biggest challenge in my ERE journey has been deciding on an investment strategy.
Looking ahead a few years, I anticipate that the hardest thing will be trying to support kids and a family.


JohnnyH
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Location: Rockies

Post by JohnnyH »

Moving the ER goal post... I've already done it once, and am thinking about doing it again. :|
Also, agree with akratic on both his points; settling on investment strategy and future family.


web_diva
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Joined: Tue Dec 20, 2011 5:23 am

Post by web_diva »

for me its cost creep on expenses, things one cannot control so well like, higher property taxes yearly, higher health insurance, higher gas prices, higher food costs,...
i am not as aggressive a saver as some on this forum but am trying to ramp up and this cost creep really crimps my style!


Dragline
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Post by Dragline »

It's living at a lower cost-standard than one's peers. Note, I did not say living standard, which I think is consumerist-speak.
If you hang out with people who spend a lot of money or have any other particular habit, such as smoking, eating to excess or drinking, chances are you will adopt the same habits. Its human nature to adapt to one's social environment.
Note -- it works just as well with positive habits, such as frugality, exercise and spirituality. Choosing your peer-group and avoiding bad ones needs to be a conscious choice, which is one that many people do not actually make.


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C40
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Post by C40 »

I think that for most people the challenge is critical thinking. Generally folks who search out a forum like this are far past that issue.
For those that think critically about their finances, the most common challenge is 1-patience, and 2- deciding on key priorities and aligning actions with them.
For the previous ten years or so, while I did generally know what I should do when I thought about it, my problem was that I didn't think about it enough, so I didn't go through really establishing key priorities or goals for myself.
Right now, I'm no so sure yet.. In the last year I've been extremely focused and that sort of new luster hasn't worn off yet. I still find myself daydreaming about this stuff. One challenge right now is that I'm less likely to be social now. I need to establish new means of social interaction and building relationships.


Debbie M
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Post by Debbie M »

My most challenging obstacle is earning money. I pretty much always take the low-paying route and the only thing that has saved me is being unwilling to quit a job without having another lined up. (Until last month. Oops. Maybe George the Original One has a point about feeling close enough when I'm really not.)
My second biggest obstacle is having gotten used to a (relatively) expensive lifestyle. I bought a house (at half the median price of houses at the time), I paid it off, and I always have a roommate, but property taxes aren't cheap here. I've lived here without a car for four years, but since that time my friends have moved off buslines. I've lived cheaper places, but this is my favorite. The big change I made last year was to start grating my own parmesan. Um, not so thrilling. (I did also pay off my mortgage early, but I did it by dipping into savings for other purposes, so now I have to pay myself back.) I keep doing comparison shopping, but my earlier choices continue to be my favorites. Wah, wah, wah.
Fortunately my friends are not a problem (except for moving to the outskirts, and if everyone wasn't willing to move out there, I'd never be able to afford to live in town, so I can't complain too much). We all recognize that we don't have the same goals and admire the differing accomplishments we all have.
I luck out with the investments because I'll be getting a pension, so making mistakes will not ruin me. (And on the other side, if the pension breaks, I have investments to help me out.) I started with an "ethical" mutual fund, with only the money I was willing to completely lose. Then I switched to diversified index funds with a more reasonable amount of money (realizing I'm not likely to lose more than half). Now I'm replacing the large-cap funds with dividend growth stocks.


DutchGirl
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Post by DutchGirl »

My biggest obstacle used to be me, going shopping. I would always see some things I'd like to have, and I would almost always buy them. I quit more or less on the shopping - no more fun shopping for me and if I have to go shopping, it's with a list.
Now my biggest obstacle is patience, I guess.


Jan in MN
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Post by Jan in MN »

I second DutchGirl - having patience


palmera
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Post by palmera »

the easiest thing for me was to give up the little luxuries: $5 lattes, shopping, dining out, drinking out, make up and skin care....
...the hardest thing for me to give up by far is the yearly, big ticket (but non-material, at least) luxury stuff: -membership to an arts society ($950)

-tour of Central Europe with best friend ($2,500)

-and also, subsidizing some of my godkids expenses ($1,500)b/c my other BFF and her husband are bonafide working poor.

-visiting family in the motherland ($500 if I can wait for a deal)
these are the major expenses I really don't want to give up. As a result, I've taken a long, hard look at budget and decided to cut out a couple of extras.


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