Is it bad luck? Poor judgement? Fate?

I'm just curious what everyone thinks. For the most part any money problem that we have had has been from our own stupid doing. And lack of education in regards to our money. I hate to sound stupid there but it is the truth. But we're learning ... slowly but surely!

Any other thoughts?

Just observing....most is either bad luck or poor judgement or the combo of the too! If we had better planning then we could handle bad luck better. I honestly see consumerism as a very easy way for many to get into trouble....it is a difficult world we live in not to spend. WE just have to be awar ethat it is out there and we are being marketed to. WE can all attest that spending is sooooo easy! so many good deals, easy credit. This is one reason I can't stand commercials...we would all be better without them...at least all of us on Mommysavers!!!

It is kinda like the obesity problem....food is so pletiful, tatses good and is relatively cheap...hense a bigger obesity issue with our lower income population in the us. We just have to be awar ethat food is everywhere...I guess in some ways it is about making healthy choices in our diets and our pocketbooks....

Now I get why Ophra calls her $ help program the debt diet....MAkes sense....this just came to me as I was making my anology!

I think a lot of it is people wanting to start out with the best of everything. New cars, houses and furniture etc....

When a lot of people move out on their own at 19 or 20, they are not ready to deal with all of the decisions that they have to make and they don't see the big picture. They have money to buy what they want and don't take in account the everyday bills that come in.

Also credit card companys don't make it any easier. They get credit cards in the mail and start charging on them and don't take in consideration that they have to pay for them sooner or later. Than they get another card and another card, and before you know it, a lot of people borrow on one card to pay the others.

And managing money is something that you have to really pay attention to and be ready for.

Also, with a lot of companys not offering health insurance, an unexpected illness can also wipe you out and mess up even the most though-out-planned budget.

My whole life, my older sister's family has had nothing but money issues. And now it's no easier because they are starting to face more health issues, pay cuts at work, higher health deductibles, etc. Sure, they have had some bad luck. Seems like if something bad is going to happen in the family, it's always them. Still, part of it is bad choices as far as money management.
My sister has had some part-time jobs over the years, but has mostly been a SAHM. Now, that is a fine choice, but there have been times that for the best of the family I think she should have been working. She is not without skills. The times that she did get jobs, though, she ended up "too tired" to cook so then all her money would go to eating out or ordering food in. Sorry, but as someone who's been working full time for 20+ years and still manages to cook dinner most nights, I don't see how working a part-time job can tire you out that much.
Then, they just put the $ in the wrong places. I was talking to her yesterday about all the thousands of dollars they paid to send 2 kids to a very tiny, private Christian school because they were not happy with their school district. (She agrees now that it was a mistake) Their son was/is a genious. He would have excelled pretty much any place you put him as he put all the pressure on himself. The girl never did have a mind for schoolwork - totally creative kid - and she was traumatized by the school as well. A family of 5 making under 30K a year has no business sending their kids to private school that costs $3-4K a year. And they are not religious! It's not like they wanted the church/ christian end at all! They just liked the fact that the class sizes were like 10 or 11 kids! They could have kept the kids in public school, paid a fraction of the money for some tutoring for the girl, and put those thousands away for retirement or on bills. We told them that year after year at the time, and now she agrees it was a waste. So, it was just not smart thinking.
Their home cost something like $50K when they bought it (back around 1979). It has been paid off twice, and they currently have a $65K mortgage on it AGAIN! So, definately bad choices.

sorry...double post

Poor decision making is the main source of the problems. But, two other factors also apply ... bad luck and social influences, especially government policies.

Right now our tax system doesn't encourage savings. We are taxed on money we save. Heaven forbid, if we try to start our children early on great savings and investments we enter a whole new tax nightmare. Our tax system encourages us to not only purchase a house (a good thing, generally) but also to get - and keep - a mortgage. If we get into unsecured debt, we are encouraged to roll that into our mortgage (a secured debt). Plus, premiums for health insurance provided through our employer is tax deductible but premiums for insurance that we purchase privately is not. People who are trying to decide whether or not to start up a new business or work as an independant contractor have to take the cost of medical insurance premiums into account - plus other bothersome taxes. I firmly believe one of the reasons the economy is stagnating is because more people aren't taking the step to start new businesses largely because of the tax nightmares.

Simply stated, as a society, we're not saving or investing, we're putting the roof over our heads at risk, and we're not stimulating business growth.

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"I've been rich and I've been poor but independently wealthy is where it is at."

It depends. Bad luck, in the form of a medical problem, can really destroy you no matter how prepared you are. There are some shocking statistics on where the majority of bankruptcies come from--a lot are people who were very smart, saved, and even had health insurance, but still got overwhelmed by medical debt when something major happened.

But there are plenty of people also who waste money. We see them all the time. Suze Orman had a fairly typical couple in one of her smackdowns--they bought a house they couldn't afford, then 2 cars while their old house wasn't selling, and meanwhile had to remodel the new house in all kinds of ways because they had to have, right away, the fence, the better kitchen, etc. They got into a HABIT of overspending $6000/month. I think this "buy what you want, when you want it" attitude has become so ingrained that almost no one can watch a Citi commercial and realize what the heck is wrong with the message! They think because they want it, they should be able to have it, and money as a finite resource--the whole math of it--rarely enters into the picture.

I also think government policies push excessive spending, as does as an underlying aspect of capitalism. A company that makes 100 billion one year still has to make $110 billion the next; its profits have to increase each year. But in essence, this comes down to people overspending by a greater percentage each year. Which is what people have been doing.

And if they start saving/cutting back, which has started manifesting itself as a trend...time for another rate cut to get us spending again!

It's not entirely that simple, because these rate cuts are also for companies and what loans they take out, etc., but these are factors.

For our family it has been bad money management. We were not taught how to handle money. We saw our parents finance everything. They may not have high credit card bills but they finance vehicles, equipment, furniture, appliances, etc. Almost everyone needs to finance their home so I'm not going to say anything about that. However, I've come to the realization that you should not be financing anything else. Not even your vehicle. I wish I had never opened a credit card. We wasted so much money on interest over the years. Before I was a SAHM, I would get a new car every 2-3 years. Who cares? It is the same payment. DUMB decision on my part!!

Just when we think we have a plan something comes up. My husband reminds me that we could need a roof at any time.... I guess there is always an IF factor.

I think its a combination of bad luck and bad judgement. I agree with Mommyof2WV in saying that if you have better judgement then you can handle bad luck or even prevent it from happening sometimes.

Its important to plan ahead and consider the what ifs so if the gremlins do strike you are financially prepared to handle the situation.

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Proud mommy to adorable Kinsley

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That is true but another nightmare is the regulatory burden. Most business activity is regulated now. Knowing the rules and regulations overall scares many away, leaving all of us with fewer choices in the marketplace. The companies already in prevent competition by claiming the consumer needs protection from the less experienced.

As far as what causes money problems, I think that most people make decisions emotionally and then use reason to try and justify them. Emotion tugs you into poor choices and sways you with visions of what you want to be or have. Like a child who "neeeds" that toy, we figure we need to .

Cathleen