“How will you know when you’ve reached financial success?”
This was a question that was asked on twitter by Jay (@jasonvo), who is one of the co-founders of the Internet Business Mastery Podcast and Academy. It was a question that really had me thinking for almost an hour about how I would know when I’ve reached financial success.
I’m sure the answer to this question is different for everybody. Here’s Jay’s answer:
For some, it might be a specific net worth, i.e. “When my net worth is over $1,000,000.”
For others, it might be a feeling or situation they aim for, i.e. “When I don’t ever have to worry about paying bills ever again,” or “When I don’t have to live paycheck by paycheck anymore.”
And for some, it may be a specific goal, i.e. “When I am debt-free,” or “When I have enough money to retire.”
There are thousands of answers, and here is mine below:
“I will know when I have reached financial success when I have fully paid off a house that I own, fully paid for my children’s education, and live each day without a trace of worrying whether or not I have enough money available for my family and I. I don’t need a big house, fancy cars or millions of dollars. I just want to be worry-free and financially independent.”
Some of you may think I’ve already reached financial success based on my income reports. I say that I have been successful financially, but have not reached financial success just yet.
So, I’m very interested in what your answer to the question is. How will you know when you’ve reached financial success?
One random lucky person, who leaves a comment answering this very question, will receive a $20.00 Target Gift Card from me. Why from Target? Because Target rules!
I’m looking forward to your answers! Cheers!
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{ 30 comments (Click Here to Leave a Comment Below) }
My answer: When I have enough completely passive income to pay all of my monthly expenses.
I don’t define it by things like owning a house because I feel that’s limiting. If I have enough in various investments to pay my monthly expenses and then some, does it matter if I own or rent?
I budget down to the penny, so I know exactly what goes out every month. I’m currently working on getting my passive income up so it matches the outgoing cash flow. I have a ways to go, but every day I make progress, and that makes me happy!
-Erica
I will know I’ve reached financial success when both my husband and I no longer have to work for other people. We will have no debt and can shift our focus from worrying about money to living our the lives we want with our kids. It’s going to be a long and winding road, but it will be well worth it!
When you can do the things that you want to do or go to the places you want to go without having to consult the checkbook first and have the time to enjoy it. Another words be free.
Financial success to me means ALL my monthly expenses are paid by passive income. And like today, when my sister told me, her son’s scholarship fell through; I want to be able to say, “How much will he need?”
$5000.
“Don’t even worry about it, I’ll cover it, better yet I’ll hire you to be my VA so you now have a monthly income to help you, so you can stay home with the remaining 4.”
~MJ
I think mine Pat is along the lines of yours. I will know I have reached finacial success when I don’t have to worry about money at all, weither the money is to pay my monthly expenses or to send a check to my parents to help them out. I will know I have achieved finacial success when like Sterling and Jay say, I quite thinking like a poor and deprived person and I start thinking like the wealthy person I hope to become. When I don’t have to worry if there is going to be enough money in my account I know I have achieved finacial success. Thanks for the thought provoking question. I think it is one that people should be asking themselves more often. You have to keep your DMP and your end goal in mind at all times or else what are you working for?
Financial success for me would be little or no worry about having to pay for anything, including several vacations each year. I’d like to be able to pick and choose which work projects I take on rather than having to take on a specific amount of work each week.
Right now it is earning $5,000 per month in passive income. Why $5K? That would be enough to cover my family’s modest monthly expenses and still have some left over for savings and fun. Once I reach that goal, I can spend time with my two boys and watch them grow up every second of the day.
Mine would be very simple: When I don’t have to worry about having the money I need to achieve my goals and dreams.
“I have reached financial success when I am free…Free from working, free from worrying, and free from wishing!”
When money becomes just another tool to make your life better, versus an object that’s used solely to survive.
It’s funny how many speak about passive income. I’d say I was financially successful when a combination of passive income and work-generating income necessary to enjoy life and better the lives of those around me takes up 1/4 of the time spent giving back my time to friendships, charities, and family. What’s financial success without others to share it with?
It’s a good question. It seems once I reach a certain level, I always want the next. I’ve learned by working from home though, that nothing is more important to me than time spent with my family. Having said that, I want to be able to provide for them more fully. When I have enough money to pay for the kids’ educations and am debt free, I will feel financially successful.
When my fiance and I can both do whatever we want, career-wise, without having to take the paycheck or benefit package into account.
This came at a good time for me. I have been meaning to write down something like this for some time as something to rate my progress. I now have something to put some where in my place for my wife and I to look at.
Financial success to me is not X amount of dollars in the bank, or being able to quite my job. When i think of financial sucess it is when my wife and i are no longer living paycheck to paycheck, have our debts paid off, able to keep my wife at home to raise our children, start to see savings grow for future needs instead of seeing the savings deplete. One major success for me is to see us able to place our condo for sale and be able to own a single family home. By being able to own a single family home we know that we have taken care of the things stated above and then i have started to see financial success.
When I have traveled to all the places in the world I would like to see.
The day I achieve Financial Success will be marked with a series of phone calls…
Dave Ramsey will ask for advice on finding financial peace.
Robert Kiyosaki will ask for advice on teaching people to generate wealth.
Thomas Stanley will ask for me to donate my brain to scientific research when I die, but first can I fill out this survey?
Oh, and Pat will ask to interview me for a post on how others can learn from my example how to earn passive income.
More serious answer: I will achieve financial sucess when it is no longer possible for me to achieve financial failure.
Great responses everyone! They are all very inspiring
I’ll be announcing the winner on Saturday, August 1st at 12:00am, and will notify the winner by email.
Thanks!
Right now it is generating $3K-$4K month in dividend income, which would be enough to live ok in the US for a small family.
I am meticulously saving, and buying quality dividend stocks like Coca Cola, 3M, Johnson & Johnson, Procter & Gamble, Mcdonald’s and 35 others which have a long history of raising dividends every year for over 25 years in a row!
Furthermore by receiving dividends I get to choose what to spend them on. I choose to buy more stock, which puts the power of compounding on my side. In essence, the stocks I own pay me to buy more stocks.
These are all great responses. However, for me financial success will be achieved with my son (he is six years old) and his children (if he chooses to have any) are “financially free.” My lifestyle is very modest, from my house, to my car, to my hobbies. I dream of the day when my future generations can splurg, if they want to.
Financial success bears a different meaning to all. It is based on our individual lives, our goals and is validated by things that we desire, yet cannot attain without having this margin of wealth.
For myself and my family, “financial success” is rather not a sum of money or expectation of money, but it is shedding the limitations on our life that the lack thereof presents.
Financial success changes. For us, it can be something as simple as not worrying how to pay the next insurance payment, or can be as complicated as planning our four kid’s college funds.
It is an obtainable dream that I already have tasted and crave. I truly believe that everyone who has the dream and the drive can obtain financial freedom and success. For me, it is the journey towards success that makes it worth it, and the day we don’t have to worry about our family’s needs is the day we are financially successful.
i will know i have reached financial success when i do not work for anyone else by necessity.
i will have a day job until it is advantagous to make the switch, so i know by the time i am working for myself, things are pretty sweet.
I will have reached financial success when I have paid off my house and can live off my passive and investment income.
Ditto what you said. I just want to own my own house, pay off my student loan and not worry about money anymore–that may mean diversifying into brick and mortar type businesses using funds from mmo. It’s really empowering to know I can make my own money. I don’t want to _need_ anyone to employ me ever again.
M
I’ll know I have reached financial success when I can quit my job and never have to get another one.
When I have enough passive income to cover all my living expenses.
Mine is also when I have enough passive income to cover our current income for the rest of our lives. Our needs are modest, if we continue to earn out current income + inflation, my husband and I can choose our work (or not). In my case, it would be just to work a three days for the mental challenge and to socialize with my co-workers.
I’ll know I’m financially successful when my family’s expenses are covered by half of my passive income.
Financial success is a moving target. It is different for everyone.
I used to define it as being $5 million liquid. Now, I define it as being able to rule my time and say no to the demands of others– that requires money, but not necessarily $5 million.
For me it is when you don’t have to worry about making money to sustain yourself and those around you, and you can only “work” on what you care about, not what just because you have to.
My dream that will mark the success: Taking all family members willing to spend a week or two with me somewhere on a tropical island in the middle of the ocean