Peculiar Obstacles To Financial Freedom & Ways to Overcome Them

Do you know sometimes in life there are some major restrictions which stops you from enjoying financial freedom?

Majorly these obstacles are mental and attitudinal in nature.

The most common reason is that some people believe, for whatever reason, that they don’t deserve to be rich. Now, I know some of you may be asking, why is that?

Some people, including myself, have been raised with a steady drumbeat of destructive criticism. This has led them to conclude, at an unconscious level, that they don’t deserve to be successful and happy.

Of course, this is untrue. Yet, this negative way of thinking can lead to destructive financial habits. These habits can be hard to break.

We will discuss some of these attitudes in these article and how you can overcome them.

I can't afford to save enough

Saving is all about prioritization. You can start by looking at your bank and credit card statements or using free money management sites like Mint or Yodlee to track your expenses. Once you know where your money is currently going, rank your spending and savings goals in order of priority to you. The key is to make sure that the things that are most important to you (such as keeping a roof over your head, food on the table, the lights on, and creditors away both now and in retirement) are being funded first, which usually means setting aside money for long term goals like retirement before you even have a chance to spend it.

Once your most important priorities are funded, you can put the remaining money in a separate account or even give yourself a monthly or weekly cash allowance for discretionary spending. You can spend that money however you like but once it's gone, it's gone until the next week or month. However, anything you don't spend can be rolled over to be splurged in the future. This is a great way to make sure you're hitting your savings goals without having to track every nickel and dime.

If you can't quite reduce your spending enough to hit your savings goals, try just saving 5% more of your income each year. Most people don't even really notice the difference but after a few years, you could be saving more than you ever thought was possible. Check with your retirement plan provider because they may even offer a contribution rate escalator that automatically increases your retirement plan contributions over time until you hit your goals.

Having negative attitudes towards Money

Negative experiences in childhood, which are all too common, can have terrible effects.  For example, when people actually do succeed as the result of hard work, they feel guilty.

These guilt feelings then cause them to do things to get rid of the money, to throw it away. They spend it or invest it foolishly. They lend it, lose it or give it away. They engage in self-sabotage. It can come in the form of overeating, excessive drinking, drug usage, marital infidelity and often dramatic personality changes.

To change your results with money, you have to change your attitude toward it. You have to make a habit of seeing money as something positive.

The fact is that money is very much like a lover. It must be courted and coaxed and flattered and treated with care and attention. It gravitates toward people who respect it, value it and are capable of doing worthwhile things with it. It flows through the fingers and flees from people who do not understand it, or who do not take proper care of it. You need to change your mindset towards money for you to experience real financial freedom

I'm overwhelmed with debt.

You're certainly not alone. Debt is a huge obstacle for financial success for many people. As they say, if you find yourself in a hole, the first step is to stop digging. Use the money management strategies above to make sure you live within your means and build up an emergency fund to avoid falling deeper into debt.

Next, look for ways to reduce the interest rates you're paying. This can mean transferring the balance from one credit card to another or threatening to do so to get a lower rate from your existing credit card. If you have good credit and home equity, paying off high interest credit card debt with a lower interest home equity loan that's also tax deductible may be appealing but be aware that you're putting

Of course, the most important thing you can do is to pay the debt down by making extra payments. You can save the most interest and be debt free quickest by putting those extra payments towards the highest interest rate debt. As one debt is paid off, you would then put those payments towards the remaining debt with the highest interest rate.

If you're having trouble just making the minimum payments, you might want to see if you can negotiate an affordable payment plan with your creditors or consult a nonprofit credit counseling agency to see if they can negotiate one for you. In any case, be sure to prioritize your rent or mortgage payments and car payments over unsecured debt like credit cards so you don't lose your home or car.

I don't have the time or knowledge to manage my investments.

This may actually be good news. Most people who are "managing" their investments are either trying to predict/time the market or are picking mutual funds based on past performance. Neither is very productive and both can actually be counter-productive.

All you need to do is re-balance your portfolio at least once a year to bring your investments back to their target percentages. For example, if your target is 60% stocks and 40% bonds and cash and your stocks have grown to 70% of your portfolio, you would simply move enough money from stocks to bonds and cash to bring the percentage back to 60%. When the market eventually declines and your stocks are 50% of your portfolio, you would do the opposite by moving money from the bonds and cash to bring your stocks back up to 60%. By doing that, you're maintaining the proper risk level while selling some of the stocks while they're relatively high and buying some while they're relatively low.

I Don't Have The Required Skills To Attain Financial Freedom

Financial literacy or intelligence is not taught in our schools or colleges but is learnt from mentors, coaches, books and experience over time.

Sometimes people believe they don’t really deserve goods things in life including money saying to themselves they don’t have the skills to enjoy these things and wallow in self pity all through their life time. But being good with money is a skill that anyone can learn through practice.

Usually, saying that one is not very good with money is merely an excuse or a rationalization. The fact is that the person is not very successful or disciplined with money. The person has not learned how to acquire it or to hold on to it.

The starting point of accumulating money is for you to believe in yourself. You have an unlimited capacity to obtain all the money that you will ever need.

Look at yourself as a financial success waiting for a place to happen. And see yourself as deserving all you can acquire.

Money is good. Money gives you choices and enables you to live your life the way you want to live it. Money opens doors for you that would have been closed in its absence.

But just like anything, an obsession can be hurtful. If a person becomes so preoccupied with money, he may lose sight of the fact that money is merely a tool. If money becomes something used to acquire happiness, then it becomes a harmful thing.

Money is essential to our lives in society. It is also neutral. It is neither good nor bad. It is only the way that it is acquired and the use to which it is put that determines whether it is helpful or hurtful.


Here are two steps you can do immediately to put these ideas into action:

First, recognize and accept that virtually everyone who has money today at one time was broke and probably broke for a long time. Then they learned the skills of accumulating money and they are now financially independent. Whatever they have done, you can probably do as well.

Second, become a student of money from this day forward. Study it, learn about it and apply the lessons you discover toward your own financial life until you begin to attract more and more money in your dire Whether the problem is saving, debt, or investing, we all have financial challenges to face in reaching our financial goals. The most important thing is to not let them limit you.

Have a positive attitude towards money as you overcome all challenges and obstacles on your way while achieving financial freedom.

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