How do you know if you have achieved financial success?

You put a portion of each paycheck into a saving account for emergencies. You are putting money away for retirement with each paycheck. You are making extra payments toward your car loan so you can eliminate debt from your life. You use a budget to stay in control of your spending.

You are practicing good money management behaviors and have become a good steward of your paycheck. It begs the question. Does this make you a success in your financial life?

Which begs another question.

Have you clearly defined what financial success means to you?

As a financial coach that has worked with hundreds of employees, I can report that one of the largest hurdles to financial success is that so many of us want to improve our financial lives but have neglected to define exactly what we hope to achieve and/or experience as a result of better money management.

Picture yourself neatly packing your suitcase, filling your car up with gas, hitting the grocery store for your favorite road-trip snacks and heading out on the highway…with no destination in mind.

Kid in backseat: “Are we there, yet?”

You: “Uhhhh, well…I don’t know…I have no idea where we are going.”

It happens all the time in our financial life journey. And while it might be a recipe for a wild adventure, as so many of our financial lives tend to be, it is no recipe for financial success. It culminates in years and years of going to work every day just to drive around in circles your whole financial life.

It is time to define what financial success means to you! Financial success is, and should be, different for everyone. It combines your values and life goals with the bigger dreams you have for yourself and your family.

The best way to get clarity around your financial life destination is to create a personal vision statement.

So grab a pen and a sheet of paper, take a deep breath and get ready to think big about your life’s purpose, goals and dreams. The purpose of a personal vision statement is to paint a vivid picture of what your life would look like if you were living your definition of financial success.

Start by writing notes about:

• Where you would live, both location and type of home. Might you have multiple homes in different areas of the country or world?
• What people would be in your life? Define the family members and friends that you would surround yourself with. Are their fellow hobbyist, a church congregation or a community organizations that you would be affiliated with.
• What would you do to create income? What is your dream job? What does your career path look like over the next 5-10 years? Would you start a business, and if so, doing what?
• How would you spend your free time? What new skills would you learn? Would you travel, and if so, where to? What hobbies would you participate in on a regular basis? What would you enjoy doing to relax?
• How would you stay active and healthy?
• How would you give your time, energy and money back to your community? What charitable organization might you be a part of?

Next, use these notes to write a paragraph on each topic. This is a creative writing exercise so write whatever comes to your pen. You will start to see your personal vision of what your successful life looks like emerge on your paper.

Finally, walk away from your personal vision statement for a couple of days and allow it to sink in. When you return to it, reread it and refine it to make sure it suits you.

So, are you financially successful?

If you are managing your money in a way that will allow you to live the best life that you envision for yourself, then the answer is YES!

If how you are managing your money is not aligned with your personal vision statement, then you are now holding the key to your success: A clearly defined destination that will act as your guiding light when making financial decision. It is up to you to adjust your money habits, stay the course and to put in the time and effort required to live your life to the fullest. 

Shane Robson-Smith is the founder of Workplace Money Coach, Inc., a boutique financial wellness company that provides financial education and coaching for employees. Check out www.workplacemoneycoach.com to learn more.