Obstacles to financial planning success

 Image source: Digitalalert; Standard royalty free license

To claim a single reason why some people fail to achieve financial freedom would be questionable, as semantically, we don't really know 'who' of the 'some' we are referring to. However, taken less literally, and more approximately, there are several reasons why some people fail to achieve financial freedom. These reasons include far more than closely correlated financial concepts such as arbitrage investing, effectively rolling over retirement plans, and taking advantage of available tax deductions.

Priorities

Some people fail to achieve financial freedom because priorities can compete among each other. For example, if one has a top priority of restoring a car, the cost of that restoration must be lower that than the top priority unless the top priority is amended to include restoring a car within a budget.

The example of automotive restoration accents the importance of integrating priorities so they do not conflict. Thus budgeting, and financial planning ideally go hand in hand with life goals so together they all improve and in the case of money, lead to financial freedom.

Skill

Growing money is a skill that more often than not requires adeptness at applying a certain amount of know how. Basic principles of money management are essential to achieving financial freedom, but more may be needed to achieve financial freedom. The inability to execute financial skill via  an effective financial plan is another reason why some people fail to achieve financial freedom.

In other words, people who fail to achieve financial freedom may benefit from a flexible, productive, intuitive and demonstrable financial plan. If the results of that financial plan cannot be measured as consistently moving toward financial freedom within an applicable time frame, then evidence of a strong financial plan is questionable.
a xenophobia. How will you eat yours?

Adaptability

Adversity can have a dramatic affect on financial goals, even those with financial know how. For example, a successful financial manager who loses a job, a sudden unpredictable tragedy in life, or an error in what may otherwise be a good financial plan can all have a negative affect or result in set backs of the goal of financial freedom.

To deal with adversity it is good to be able to have risk tolerance, accept loss, and have financial resilience. Being resourceful, adapting to change and seeing opportunities in situations where there seems to be none are ways to work toward financial freedom during times of adversity.

Capacity

Different people have varying capacity to obtain financial freedom. Capacity includes skill, but is not limited to skill. Capacity to achieve anything requires focus, understanding, willingness, and circumstance. It represents the overall probability of achieving financial freedom.

Not having the capacity to achieve financial freedom is a major obstacle to that goal. Some people might not achieve financial freedom due to this. Capacity also includes things like leverage, low costs, career, birthright, and other measures of financial strength. Capacity is not unattainable in most circumstances but is ideally built before implementing a financial plan leading to financial success.

All the above reasons are rather around the point of direct cause and effect relationships that build wealth. That is to say, they are often one or more step removed from actual financial relationships such as consistently investing in an IRA or maintaining a budget and growth investing via a well-optimized financial portfolio. The above are reasons why people don't get to the point of being able to optimize their portfolios that are in some cases among the last steps to financial freedom.