Where Do You Think People Fail When Not Achieving Financial Freedom?

General Real Estate Investing
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Where Do You Think People Fail When Not Achieving Financial Freedom?

Gino BarbaroPro Member
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes

I've been obsessed the past decade on trying to understand why some people become financially free, while the majority of the population is living paycheck to paycheck.

I just launched a book called Baby Money Soldiers, which is a book on personal finance, that shares the story on how we all need to be "Generals" of our financial army. It's a great way to teach young adults about money and finance.

I would love any feedback on what you think are the main forces holding people back from becoming financially free. I'm always trying to create content that will help people make more money, and start driving towards their soul purpose.

Thanks for taking the time to read this and to share your thoughts.

I believe People With Financial Intelligence Can Change The World For The Better".

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Erica Calella
Investor · Member since 2024 · 77 posts · 105 votes
2y

In my opinion, the problem is not "cash inflow", but rather "cash outflow". I think many of us use hyper-consumerism as a means of validating our self-worth.

We NEED to upgrade to a new cell phone every year, we NEED to take expensive vacations to show our friends how fun our lives are, we NEED to purchase the more expensive car, we NEED to eat at chic restaurants and document the experience all over our social media. If we don't, what will other people think of us? What will we think of ourselves??

It's hard not to fall into this trap when digital marketing and social media advertising is constantly shoving all of these unnecessary products and services down our throats. I read the Millionaire Next Door for the first time recently and it honestly opened my eyes to a lot of these constraints and how societal pressures keep us trapped within this vicious cycle. Breaking free from it all was one of the best things I've personally ever done financially. I realized I much preferred to eat dinner at home, where I would be satisfied and not still hungry afterwards.

With that said, I'd love to purchase your book! @Gino Barbaro

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  • Jessie ReddPro Member
    Flipper/Rehabber · Raleigh, NC · Member since 2018 · 57 posts · 26 votes
    2y

    @Gino Barbaro

    Great topic. I believe it’s a few different things. Some aren’t willing to sacrifice now so they can have more later. We live in a society where everyone wants it all now, are not willing to make the sacrifices to make it happen. For others, I believe it’s their environment and the people they surround themselves with. Becoming financially free requires continuous focus. Most aren’t willing or able to do that. Just my thoughts.

    1Reply
  • Becca F.
    Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    @Gino Barbaro

    Congratulations on your book! 

    1) Lack of knowledge

    - I was taught to save money growing up and the goal was to be mortgage free. No one taught me how to invest, the power of compound interest and using leverage. If I had started at 18, I might be in a better position. I feel like I'm playing catch up now. 

    - I've talked to a few women in their 50s to 70s and they knew nothing about investing. Look at the BP Forums and how many women real estate investors there are and we make up 50% of the population. I think this is changing now since there's a lot more education via social media and the internet. 

    2) Delayed gratification

    - This country has a very consumer oriented mindset - new phones, new cars, clothes, etc. Look rich with lots of bad debt. 

    3) Fear/analysis paralysis

    - People are conditioned to work until age 65 at a company and put money into a 401k and not step out of their comfort zone. Investing in real estate or starting a business is considered risky. Yet most employers will lay someone off or fire them and not blink an eye - sounds risky to me. 

    2Reply
  • Todd Jones
    Member since 2023 · 243 posts · 199 votes
    2y

    At a regular job, you are “guaranteed” income and benefits on a regular basis. Your can pay your rent and car note. When you get off work, you can relax and indulge in TV, foods, vices like drinking, etc. Why not?! You did your work today so you deserve to relax. You earned it. BTW: Your manager dictates how you live your life (bonuses, most increase, getting fired, etc).

    Why start a business? You will risk a lot of funds and be in debt. What if it starts to fail? Am I smart enough to fix it? What if I fail? I’ll owe so much and may become bankrupt. My family would suffer because of me. Even worse, what if I succeed? I will have no free time. Working nonstop. Don’t I deserve to rest? In all, will dictate my life, which is scary!

    These thoughts of negative use cases are why people don’t pursue financial freedom.

    Now another perspective is becoming scared and angry of not becoming financial freedom. Knowing you will grow old discussing woulda/coulda/shoulda. Letting someone else’s (manager) subjective feelings decide your financial fate vs. your fate being determined by your drive. Relax? Working for your goals is your relaxation. Seeing how far you can really go. Family? They would be more proud of you being free/driven individual vs. just taking it from a boss. 

    In summary, comfort, security, discipline, confidence, and perspective are the main factors.

    1Reply
  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Becca F.
    playing catch up is much better than never playing!

    You make some great points. Mark Twain said it ain't what you don't know that will get you in trouble, it's what you know for sure that just ain't so.

    There are so many people out there making assumptions that are just plain false

    Thanks for your insight

    Gino 

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  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Jessie Redd
    two recurring themes are delayed gratification and who you surround yourself with.

    For me, it was definitely the people I was surrounding myself with. 
    I agree it's constant work, just like anything else you want to achieve in life

    Thanks

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
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  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Todd Jones

    Becoming an entrepreneur is not for everyone. I still think if people invest and control their spending they can achieve a level of financial independence even if they have a job.

    It may take them longer, but I think they are not even considering it. I like how you summed it up. It's sometimes simple, but it sure isn't easy

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    2y

    Earn more money , spend more money . When buying a car people want to know what  the monthly payment will be ? I want to know the price of the car .  They are told by the bank what they can afford as a monthly house payment and they buy at the maximum . Same with the car salesman .  People dont plan to fail , they fail to plan . 

    They dont teach basic fiscal management in school . And if they do its not much . 

    "The Peter Principal " Says something that people will rise to the level of their own incompentence .   

    Nickels and dimes add up , we recently cleaned out a house , I had a 20 year old guy helping me . Many trips to the landfill with the dump trailer . As we were moving stuff out I told him to put anything that was mostly metal off to the side , and we even cut off cords to lamps . He told me it was a waste of time . I told him just do it . Then as we went to the landfill he say they charged $100 a ton to dump . Our last trip was all the metal , we put in the steel first , and the aluminum , copper and wire last . First stop was the place to sell the aluminum and copper , 800 lbs and I got $300 , last stop was the steel recycler I has 3000 lbs that was just shy of $200 .  His jaw dropped and said you just made $500 , I told him no , I just made $900 . Because I didnt take the metal to the dump which was 2 tons that would have COST me $200 .  And the agreement with the customer was $100 a ton to dispose of the junk .  It didnt matter where or how I disposed of it .    ( Plus the hourly rate to empty the house ) 

    1Reply
  • Hamp Lee IIIPro Member
    Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
    2y

    Congrats on your book!

    I think some of this comes from our upbringing and what we’re taught or not taught and how what we saw shaped us in some way.

    Some of us have further to travel toward a position of financial freedom, but it is not impossible. And for some, it is a matter of contentment with what they receive and being a good steward of it.

    I wish you all the best.

    2Reply
  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y
    Quote from @Hamp Lee III:

    Congrats on your book!

    I think some of this comes from our upbringing and what we’re taught or not taught and how what we saw shaped us in some way.

    Some of us have further to travel toward a position of financial freedom, but it is not impossible. And for some, it is a matter of contentment with what they receive and being a good steward of it.

    I wish you all the best.

    I think the recurring theme here is upbringing and your surroundings! Thanks for sharing your experiences and insights!

    All the best

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    0Reply
  • Charles Apina
    Member since 2024 · 2 posts · 0 votes
    2y

    In data presentation.

    0Reply
  • Charles Apina
    Member since 2024 · 2 posts · 0 votes
    2y

    They get the deal, but how to present it to the lenders is a problem. Lenders  not easily available. 

    0Reply
  • Mae Galang
    New to Real Estate · La Crosse, WI · Member since 2024 · 15 posts · 12 votes
    2y

    There is a huge psychological aspect to money. 

    I can only speak for myself and what worked was establishing a goal early on while being careful about having a certain number in mind and building your life around it.

    What is your rich life? For some, it’s owning a super car. For others, it’s having more time to travel and spend time with loved ones. I am grateful to be able to go to the grocery store and not have to look at every price tag. I am also thankful that I am able to invest X amount per week in the stock market and Bitcoin.


    Commitment, discipline and consistency. “Live in the moment, plan in decades.” 


    1Reply
  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Mae Galang

    100%. People need to explore their relationship to money, and what will make them happy, and how they can live according to their values!!

    I'm with you on the price tags! With six kids, the dentist bills were killing me, and every time we had to travel, it was painful economically!

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    2y

    I think big factor contributing to de-railmemt is losing focus on that one thing we specialize in. Our bread and butter and core competency.  

    Old what's their name was doing great, acquiring LTRs. Houses, plexes, etc in their backyard. 

    Then they heard about MTR furnished, STR, out of state and got a partner. Then self-storage, syndications, you get the idea.

    The more control and say you lose, outside of your expertise,  the higher the chances of non-achievement.

    1Reply
  • Wil Reichard
    Rental Property Investor · Greenville, SC · Member since 2017 · 185 posts · 178 votes
    2y

    @Gino Barbaro where do I go to read it?

    0Reply
  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Steve Vaughan

    The shiny object syndrome. I agree with your sentiments. It was challenging to find deals in multifamily in 21 and 22, but we didn't jump into rv parks. We stayed in our lane and closed 350 units in 23 and are having  a good 24. 
    it does take time to become good. Pick a vehicle and stick with it


    Thanks for your input!!

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    1Reply
  • Gino BarbaroPro Member
    OP
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    2y

    @Wil Reichard
    DM me and I'll send you an ebook.

    It's also on Amazon

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    2y
    Quote from @Gino Barbaro:

    I've been obsessed the past decade on trying to understand why some people become financially free, while the majority of the population is living paycheck to paycheck.

    I just launched a book called Baby Money Soldiers, which is a book on personal finance, that shares the story on how we all need to be "Generals" of our financial army. It's a great way to teach young adults about money and finance.

    I would love any feedback on what you think are the main forces holding people back from becoming financially free. I'm always trying to create content that will help people make more money, and start driving towards their soul purpose.

    Thanks for taking the time to read this and to share your thoughts.

    I believe People With Financial Intelligence Can Change The World For The Better".


     It's quite simple... Most times, the risk and reward is NOT worth going through real estate investing or starting your own business.  If one has to take care of other family members, then that adds another level of stress and complexity.

    If someone is on their own and wants to gamble, sure, some will take a shot. Most people are lemmings and would rather have the false confirmation that their paycheck will always be there; until it isn't.

    I have many friends and family who rather have a steady paycheck and keep with the status quo then roll the dice. This is fine, but that is why they struggle and never get ahead.  Now, since as much as 7 out of 10 businesses fail these days; I am not sure how secure starting one's own business is either without a huge safety net.

    There's no guarantee that REI, self-employment or W2 workers will always be safe and sound. Actually, the only real secure job these days are governmental jobs. That seems to be the place to be these days. Outside of that; it's a crap shoot in life.

    Many many decades ago when I started, I was in a small Brooklyn, NY apartment with brown water. I ate a lot of rice, apples and other inexpensive food to get by.  I am not sure if I'd be able to do that if I had a family to take care of.

    I also read on here all the time that some people are making 80 - 200 a door and they are happy they are in the game. That's great, but if something major goes wrong, they are sh*t out of luck.

    I really do not have an answer for you.  Success is basically timing, luck, and chance.  Knowledge and experience only come in hand after you've made those mistakes in life and business.


    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y
    Quote from @Ray Hage:

    @Gino Barbaro Congrats on getting your new book to the masses! I would say the three biggest reasons why people don't achieve financial freedom are: 

    1 fear of investing/losing money and will put it in something like a CD and be happy with 2-3%

    2 spending too much money on non-essentials like eating out, nice cars and primary housing. They are not willing to make the short term sacrifices or work a 2nd job/more hours to use the money to invest.

    3 procrastinating. They have a busy life and are preoccupied so they put off investing because they think they have plenty of time to start investing later.

    These 3 things are what I have observed in my personal circle and at networking events.

    I agree with you. However, people choose to make their lives 'busy'.  If they stopped to decide what was important, turned off the technology for a bit and stopped trying to keep up with what others (social media is a huge problem); they would have lots of time.
    2Reply
  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    2y
    Quote from @Matthew Paul:

    Earn more money , spend more money . When buying a car people want to know what  the monthly payment will be ? I want to know the price of the car .  They are told by the bank what they can afford as a monthly house payment and they buy at the maximum . Same with the car salesman .  People dont plan to fail , they fail to plan . 

    They dont teach basic fiscal management in school . And if they do its not much . 

    "The Peter Principal " Says something that people will rise to the level of their own incompentence .   

    Nickels and dimes add up , we recently cleaned out a house , I had a 20 year old guy helping me . Many trips to the landfill with the dump trailer . As we were moving stuff out I told him to put anything that was mostly metal off to the side , and we even cut off cords to lamps . He told me it was a waste of time . I told him just do it . Then as we went to the landfill he say they charged $100 a ton to dump . Our last trip was all the metal , we put in the steel first , and the aluminum , copper and wire last . First stop was the place to sell the aluminum and copper , 800 lbs and I got $300 , last stop was the steel recycler I has 3000 lbs that was just shy of $200 .  His jaw dropped and said you just made $500 , I told him no , I just made $900 . Because I didnt take the metal to the dump which was 2 tons that would have COST me $200 .  And the agreement with the customer was $100 a ton to dispose of the junk .  It didnt matter where or how I disposed of it .    ( Plus the hourly rate to empty the house ) 


     That’s exactly right. It’s the mentality of buying stuff. A year ago I bought a 2016 GMC dually. It had 9000 miles on it. I paid 25k for it. One friend of mine asked why I bought such an old truck. I just shook my head and told him it’s not old at all. It’s a new truck essentially that wa just waiting for the right owner. With the miles on it I could have sold it double last year. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Calvin Thomas:
    Quote from @Gino Barbaro:

    I've been obsessed the past decade on trying to understand why some people become financially free, while the majority of the population is living paycheck to paycheck.

    I just launched a book called Baby Money Soldiers, which is a book on personal finance, that shares the story on how we all need to be "Generals" of our financial army. It's a great way to teach young adults about money and finance.

    I would love any feedback on what you think are the main forces holding people back from becoming financially free. I'm always trying to create content that will help people make more money, and start driving towards their soul purpose.

    Thanks for taking the time to read this and to share your thoughts.

    I believe People With Financial Intelligence Can Change The World For The Better".


     It's quite simple... Most times, the risk and reward is NOT worth going through real estate investing or starting your own business.  If one has to take care of other family members, then that adds another level of stress and complexity.

    If someone is on their own and wants to gamble, sure, some will take a shot. Most people are lemmings and would rather have the false confirmation that their paycheck will always be there; until it isn't.

    I have many friends and family who rather have a steady paycheck and keep with the status quo then roll the dice. This is fine, but that is why they struggle and never get ahead.  Now, since as much as 7 out of 10 businesses fail these days; I am not sure how secure starting one's own business is either without a huge safety net.

    There's no guarantee that REI, self-employment or W2 workers will always be safe and sound. Actually, the only real secure job these days are governmental jobs. That seems to be the place to be these days. Outside of that; it's a crap shoot in life.

    Many many decades ago when I started, I was in a small Brooklyn, NY apartment with brown water. I ate a lot of rice, apples and other inexpensive food to get by.  I am not sure if I'd be able to do that if I had a family to take care of.

    I also read on here all the time that some people are making 80 - 200 a door and they are happy they are in the game. That's great, but if something major goes wrong, they are sh*t out of luck.

    I really do not have an answer for you.  Success is basically timing, luck, and chance.  Knowledge and experience only come in hand after you've made those mistakes in life and business.



    nursing is a guaranteed pay check ! :) 
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