What is financial success?

Is there a clear definition of what that actually means?

Am I financially successful if…..

• I put a portion of each paycheck into a saving account for emergencies
• I save 15% of my income for retirement
• I budget every month and my spouse/partner and I do this together
• I have no debt
• I can pay for my kid’s college tuition
• I am able to afford nice things
• I give 10% of my income away

These milestones indicate that we practice good money management behaviors and have become a good steward of our paycheck.

But do these things mean we have reached success in our financial life? That depends on whether or not you have clearly defined what financial success means to you.

Notice that I didn’t ask you to look up what financial success means. What it means to someone in Hollywood, social media or your neighbor is completely irrelevant. How do YOU define financial success?

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.”

This happens all the time on 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. This is the very first activity we walk employees through in our signature program, Living Paycheck to Purpose.

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.

• Where you would live, both location and type of home?
• What people would be in your life?
• What would you do to create income?
• How would you spend your free time?
• How would you stay active and healthy?
• How would you give time, energy and money back to your community?

We believe so much in this first step that all of the coaches at Workplace Money Coach have gone through this exercise, and it’s something we encourage each other to revisit and reassess at least once a year.

Am I doing what I need to do to be 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!

The key to your success is 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. Shane defines financial success as putting aside money to enjoy new experiences and adventures with wife and three teenage kids.