What is Financial Success?
Financial success simply entails putting in consistent financial effort that results in a better financial position than you would otherwise have. Your financial achievements should be translated into a series of financial milestones, specific assets, or degrees of net worth at each stage of your life.
By the time you're 35, you could be able to buy a house or pay for your children's college education. As a result, the number, content, and financial characteristics of your financial assets will undoubtedly alter over time as your circumstances change and a new milestone is set.
Defining What Financial Success Means To You
You can start calculating how much money you'll need to finance your perfect future once you've selected what you want to do with your life. This might be as basic as looking into the cost of buying and maintaining a recreational vehicle, or as sophisticated as calculating the cost of operating a restaurant in your neighborhood, depending on your goals. In either situation, you'll need to calculate how much money you'll need to pay your ambitions while still meeting your fundamental necessities.
Finally, you must decide how you will earn and/or save the money you will need to reach true financial success. It might not be a significant quantity; after all, if your financial goals are modest, your personal definition of success will be modest as well. Naturally, if you have lofty ambitions for the future, you'll need to figure out how to save enough money to live the life you choose. And, more significantly, you'll want to start living that life as soon as possible. Think about your current earnings, your estimated future earnings, and how much you can save on a daily basis. Consult a financial advisor for assistance in developing a savings strategy.
When it comes to financial literacy, or basic economic and money management skills, it's all about taking charge of your situation. Assume control of your own notion of success. Being proactive and developing your own sense of economic prosperity is crucial.
If you want to go fishing every day, then putting gas in your boat and limiting your financial obligations is your financial success. You'll need to invest or start a business that allows you to own a house and sit on the porch sipping sweet tea every morning if you wish to do so.
Why Is Financial Success Important
Rather than thinking of financial success in terms of a number, Cartwood contends that the best method to achieve financial contentment is to first determine how you want to spend your money; only then can you determine how much money you'll need to fund your goals.
What Does It Mean To Have 'More' vs. 'Less' When It Comes To Your Financial Success?
More vs. Less. Balance, perspective, education, principles, and how you define what is most essential to your happiness all play a role in financial success. For some people, the thought of "more" has an attraction and fascination that drives them to work harder and surround themselves with the trappings of luxury. Others associate financial success with words like "less debt," "less anxiety," "few possessions," and "fewer difficulties." Whether you consider yourself a "more" or "less" person is entirely dependent on your point of view and the amount of effort you are willing to put out in order to live a life compatible with your values.