How do you measure financial success in your life? [Archive]

iShater

Jul 8, 2009, 10:24 AM

As you grow in your career and life, how do you measure your progress and/or success (or failure) financially?

I see having a steady job, no debts, some savings, and planning for retirement as signs of good progress,.

On creature comfort levels, a decent home, and decent car to meet my needs.

What about you? do you consider a fancy new car as a sign of success? bigger houses? traveling around the globe? being able to tell your boss to buzz off? :p

(Of course there is more to life than $$, I'm specifically asking about the financial successes).

MacDawg

Jul 8, 2009, 10:25 AM

If I am able to pay all my bills on time by the end of every month

Seriously

Tough times

Woof, Woof - Dawg http://homepage.mac.com/k.j.vinson/pawprint.gif

iShater

Jul 8, 2009, 10:27 AM

So just making it? I think that deserves to be in the poll. Dunno how to add to the poll though. :o

iGary

Jul 8, 2009, 10:29 AM

Not being in debt (aside from home) with 8-10 months of reserves in savings.

iShater

Jul 8, 2009, 10:34 AM

Not being in debt (aside from home) with 8-10 months of reserves in savings.

Isn't it stressful how the 6 months of savings used to be a nice to have until the economy hit rock bottom? now if you don't have 6 months to prepare for unemployment you are basically screwed.

redwarrior

Jul 8, 2009, 10:35 AM

I'm so deep in debt, I would probably go to prison if they still did such things.:o So what though? It's hard for me to put the word "financial" and "success" in the same sentence, especially after all I went through with my son. For me, money has so little to do with success in life.

But, to answer the question, I measure financial success in how much I can give away. When I am able to be a part of housing and feeding people, I will be a success. I am working toward that, and am giving to help with this already.:)

Unspoken Demise

Jul 8, 2009, 10:38 AM

If I am able to pay all my bills on time by the end of every month

Seriously

Tough times

Woof, Woof - Dawg http://homepage.mac.com/k.j.vinson/pawprint.gif

+1. As long as the bills are paid, I can take care of myself and my family, and I am saving at least a little of my pay checks, I'm happy. Gotta live within your means in an entry level position and your 19 and on your own.

sushi

Jul 8, 2009, 10:39 AM

Not being in debt (aside from home) with 8-10 months of reserves in savings.
With the way things are now, my wife and I are working on having more savings. Used to be 6 months. Moving that up to 1 year, or possibly more.

As far as the OP's question, these come to mind:
Being debt free.
Living within your means.
Able to choose what you want to do work wise.
Being able to survive without a job, with no change of lifestyle, for at least a year.
Being able to contribute back into society via charities or volunteer work.

miniConvert

Jul 8, 2009, 10:42 AM

I voted all of the above, but I suppose financial success boils down to financial freedom, ultimately.

However one has to appreciate that calculated borrowing can often-times be necessary to advance aspects of your life that would otherwise not be possible.

That said, being a slave to repayments+interest indefinitely would != happiness for me.

iShater

Jul 8, 2009, 10:46 AM

I voted for #1, because for me that brings the peace of mind that helps me do things I want to do.

What is interesting is that my wife would probably vote "All of the above". :p

redwarrior, that is a very interesting way of measuring it. I have to admit that my "philanthropy" did drop recently with my new lower-paying job. And I think that might be one of the reason that I do not feel as good about my finances as I should be. :eek:

Dr.Chris

Jul 8, 2009, 10:53 AM

I would be satisfied with a paid for house, paid for car, no debts of any kind, enough money invested that I could live comfortable off the interest, or maybe some paid for rental houses to provide a little spending money. But paying off loans would be my #1, so that is how I voted.

iGary

Jul 8, 2009, 10:57 AM

With the way things are now, my wife and I are working on having more savings. Used to be 6 months. Moving that up to 1 year, or possibly more.

As far as the OP's question, these come to mind:
Being debt free.
Living within your means.
Able to choose what you want to do work wise.
Being able to survive without a job, with no change of lifestyle, for at least a year.
Being able to contribute back into society via charities or volunteer work.

I like your list. :)

mscriv

Jul 8, 2009, 11:06 AM

I voted financial freedom, but let me explain further. To me, financial success = financial responsibility. It doesn't matter how much money you make or what your income level, the question is are you a good steward of what you have? Living within your means and being debt free is a foundational principle here. Additionally, as RedWarrior pointed out, are you contributing to your community and giving back? There is a big difference between seeing money/finances as a tool vs. seeing it as a possession.

Melrose

Jul 8, 2009, 11:18 AM

I would describe financial success as being able to afford a nice home, not ostentatious or anything but a nice place, a mid-range car, no debt, and a vacation once a year or so.

Financial success doesn't equal material extravagance.

Heilage

Jul 8, 2009, 11:26 AM

Unspoken Demise

Jul 8, 2009, 11:27 AM

I had to be honest and answer "All of the above".

I'm one of those who will never be satisfied with what I have, and always wanting more. So unfortunately, even if I get insultingly rich, with a huge house, 20 cars and a gigantic swimming pool, I'll never be satisfied. It's my curse, I suppose. :)

Why do you feel that way? I'd be happy with 1 house and a steady income with job security. Success isn't measured in material possessions, IMHO.

Kudos for your honesty though. I wasn't bashing your views, just asking a simple question. :)

Zombie Acorn

Jul 8, 2009, 11:31 AM

Being able to work the least amount possible and still be financially viable. Whats the point of having money if you have to work all of the time? 2 week vacation a year is what is suppose to motivate me for a whole year? no.

Heilage

Jul 8, 2009, 11:47 AM

Why do you feel that way? I'd be happy with 1 house and a steady income with job security. Success isn't measured in material possessions, IMHO.

Kudos for your honesty though. I wasn't bashing your views, just asking a simple question. :)

I think it's because my mind is incapable of understanding anything else than material possessions. I know it sounds really shallow, but I can't help it.

I'm having professionals looking at it, though. So maybe I'll be able to change. :)

dmr727

Jul 8, 2009, 11:48 AM

As long as my wife and I don't have money as a source of worry (present or future), I'm happy.

Unspoken Demise

Jul 8, 2009, 11:49 AM

I think it's because my mind is incapable of understanding anything else than material possessions. I know it sounds really shallow, but I can't help it.

I'm having professionals looking at it, though. So maybe I'll be able to change. :)

Good luck then heilage. I'm not going to say you need help, because everyone thinks differently. But if YOU feel as though you need help, then congratulations on seeking it!

iShater

Jul 8, 2009, 11:49 AM

As long as my wife and I don't have money as a source of worry (present or future), I'm happy.

Are you and your wife on the same page when it comes to these items?

I for example thing a car that is still running and is in a good shape is perfect, my wife thinks that not having a new car means falling behind :o

edesignuk

Jul 8, 2009, 11:50 AM

When I have it I'll let you know :p

bartelby

Jul 8, 2009, 11:50 AM

As long as my wife and I don't have money as a source of worry (present or future), I'm happy.

That's all I ask for too.

sushi

Jul 8, 2009, 12:04 PM

Financial success doesn't equal material extravagance.
Agree.

Even BG with all his wealth can't buy everything in the world.

Somewhere along in life you learn to be satisfied with what you have. That doesn't mean that you don't strive for more. It just means that you can be content with what you currently have.

Also, I think material things become less important as you get older in that family, health and other things replace material things to a certain degree.

dmr727

Jul 8, 2009, 12:08 PM

Are you and your wife on the same page when it comes to these items?

Not always, but we're pretty close. I don't need much. Like you, I'll drive my car until the wheels fall off. ;) But we live pretty modestly compared to what comes in, so the money is there if she needs to spend.

-Ryan-

Jul 8, 2009, 12:11 PM

I consider financial success to be when I can afford whatever I want to buy without worrying about it. Right now, that is the position I'm at, but I know once I leave university I will cease to be financially secure, as my money I earn from work (£8.90 an hour) won't be able to sustain anything great. But right now, I have everything I need, I can afford anything I want, I have savings, I have a pension, and I'm happy. Ask me in 2 or 3 years and I'll probably be a struggling young professional. Hence why I've already begun saving, so if I hit hard times in the future, I'll hopefully be able to cope a little bit better.

Heilage

Jul 8, 2009, 12:11 PM

Good luck then heilage. I'm not going to say you need help, because everyone thinks differently. But if YOU feel as though you need help, then congratulations on seeking it!

I didn't say you suggested that I needed help either. I just want to be able to appreciate more than money and stuff in my life. :)

Zman5225

Jul 8, 2009, 12:15 PM

I define financial freedom:

As long as my family is taken care of, happy, eating well and we can get them the things that they would like to have, vs things they have to have and a good roof over their heads. That's financial freedom to me. When I die I won't leave them a single penny of debt either.

ziwi

Jul 8, 2009, 12:36 PM

Finanacial Freedom - really not 'needing' the money. So never wanting for anything or needing for anything, being content with what there is. From a certain perspective anyone can have financial freedom if they manage their wants and needs..;)

duncanapple

Jul 8, 2009, 12:50 PM

Me personally, I would define it as;

1. Owning a nice home (even if you make payments - just so long as you can easily afford them). "Nice" home to me means new or up to date, 2000 sqft (not huge but not small), a bedroom for each kid, etc. All maintenance is up to date ie house isn't crumbling around us.

2. Being able to buy a new decent car every 3 or so years (but keeping them for 6-7 years to really get ahead). "Decent" means honda, toyota, etc. Not bmw, benz, etc.

3. Being able to take at least one vacation a year

4. Never needing to argue about money with the spouse.

5. Being able to live on one salary even though the fiance/wife and I both work. (ie salary #2 is fun money and/or savings)

6. A year of bills in a savings account.

7. Putting consistently in a 401K plan, Enough such that I can retire between 55 and 60, and live my above lifestyle in perpetuity on the interest.

8. Anything else above this is complete icing on the cake. If we save more than this then buying the luxury items (such as a nicer car, nicer camera, nicer clothes, etc) great. But owning this stuff isn't the end all be all. In fact while none of it is, having anything less than the above can introduce stress and interfere with focusing on the truly important things - spending time with family and friends, your faith, being a good person, etc.

I will never work more than 40 hours a week to go beyond this. If I have to work 100 hours a week to achieve this I will - but i wont break my back and loose whats important to drive the latest luxury car or show others how great I am. I think the 22 year old me vs the current 27 year old me would smack me for saying that lol. I think the need to impress with possessions fades away for most people when they get middle aged to older.

Thats it. Lofty goals in todays times but I think I am on my way god willing lol.

Capt Crunch

Jul 8, 2009, 06:47 PM

Full blown financial success to me is not having to worry about money, ever. I should point out before people think I'm shallow, that I (and indeed everyone) can be happy with very little. Just two years ago I was planning to be a poor academic and happy with my choice. When I decided to "sell out" and switch fields I realized that I could make a lot more with just a little more effort (in a field that I enjoy less, but that's the tradeoff).

I checked all of the above, but not for the reasons given. In terms of material things, given the ability, I'd earn my money for the following things:

A nice house. Not big, but nice. I really enjoy the home life with my wife and a lot of our life together is focused on our home.

A nice car. My main hobby is cars and running them on the track. While I know it would be a complete waste of money, it would be super, super cool to have something like a Ferrari or Aston Martin. Imagine it like only needing a base iMac, but if you're a computer nut you would really love to have a pimped out Mac Pro with dual 30" displays just because.

Traveling. My wife loves to run around and take pictures and I like taking her. It would very liberating to have the financial ability to be able to pack up and go someplace whenever we want without having to worry about.

OutThere

Jul 8, 2009, 07:37 PM

I think that the measure of financial success in my own life will be to provide my own future family (I'm 21) with the level of comfort that my parents have been able to provide me growing up. I went to boarding school, I've been to Europe at least once every year of my life, I go to a great private college...I think that I'll be pleased with my financial success when I can offer these same things to my children. I was raised both European and American and I'd like to be able to continue to travel across the Atlantic without much thought. :)

ecstasy

Jul 9, 2009, 03:00 PM

I'm gonna be a bachelor for the rest of my life.

And persevere to become a B.A.L.L.A.

timerollson

Jul 9, 2009, 03:15 PM

Not to worry about money but to also be able to give in large amounts to causes I genuinely care about.

maflynn

Jul 9, 2009, 03:16 PM

None of the above, I don't measure my financial success by the number of toys I collect but rather providing a stable and sound lifestyle for my kids. That also doesn't mean a ton of material possession either but rather the ability of more money then month. Too often, I have too much month left over at the end of the money but on those rare times I have more money left over, that's a win ;)

63dot

Jul 9, 2009, 03:20 PM

I took the most common option, which is simply not to have debt.

It's good to pay off medical bills, houses, condos, cars, student loans, credit cards and have zero and live a simple life than to have tons of stuff, flashy clothes, big vacations, and mountains of debt.

There are many happy people who live paycheck to paycheck, don't have a savings account/portfolio, may have an old car or take public transit, wear simple clothes and are far better off than let's say our latest King Solomon (Bernie Madoff). The chasing of riches like showing off by having a 1) big house (without the need/utility), 2) driving flashy cars, and 3) going on fancy vacations just to show off ALWAYS ends up bad in the end in one way or another.

1) Super big house: There is more furniture to buy and higher utility bills and more time and money spend cleaning even if you live there alone. This has happened to several friends of mine who all got rid of a house too big for their true needs.

2) Flashy Cars: People I know who have these complain about the higher insurance and nobody I know with an exotic car is happy about repair costs. Most I know have dumped these cars in the end for a more usable form of transportation. The ones I know who have not dumped them are looking to sell, or simply don't drive them to avoid having them break down which cancels out the idea of having a car anyway.

3) Flashy vacations: It's great to go out and see the world, but we all know people who brag about where they have gone only to complain about how many times they lost their luggage, got mugged (one assaulted by the Taliban), complained about a poor exchange rate, or kissed the ground when they got back home.

Maybe I have not been on this earth long enough to see an exception, but every time I have seen somebody go way beyond their utility of something they purchased or did it for the reason of "flash/bling", I have seen a bitter person, embarrassed person, angry person, or at the very least someone who told me that, "It's not all it's cranked up to to be." ;)

Eidorian

Jul 9, 2009, 03:21 PM

No debts.

I want that Phenom II X4 940 but I shouldn't...

My mother is more than happy to pay to visit my family abroad so why vacation anywhere else? Free room and board plus travel!

cpit

Jul 9, 2009, 07:07 PM

63dot

Jul 9, 2009, 09:42 PM

hmmm I guess I'm way more materialistic than most of you.

My definition of financial success:

- gorgeous car. stick-shift, so most people won't even ask to borrow it (I know very few people who can drive stick)
- not necessarily BIG house (mansion is way too big), but very roomy and modern
- can afford to be early adopter for any new cool technology
- really nice "work station," with many displays and amazing sound system
- walk-in closet with not necessarily TONS of clothing, but a well-rounded wardrobe I'm happy with (I'm a girl btw)
- being able to give gifts. I'm not just talking about charities (that too), but the ability to give a friend something they've been dying for but couldn't afford

but I'm only 16, so maybe I just haven't got my priorities right in life ;) If I do become financially successful, my biggest fears are raising spoiled children and tying money to happiness too much

I wouldn't call you materialistic at all. So you want a nice car, but it's at least one. One girl in high school I know had a father who owned a car dealership and every year since age 16 she got a new car with the latest appointments. To me, that's just plain excessive.

Most Apple technology is cool, and while some call our Macs and iPods boutique, they are actually a good deal for what they offer in the long run.

If you have extra money, but consider giving gifts, that tells me you are not materialistic. And you also consider charities at your age so that shows good shepardship of your finances. Many adults never pick up on that one.

I'm more than old enough to be your parent, and when I was your age, I dreamed of having more stuff than I needed so I could impress people, whether I needed the stuff or not, and I rarely thought about gifts for others and I had no idea what a charity was. By the time I got out of high school and into college and saw many fellow students struggling with just paying the $225 dollar tuition for classes and room and board and medical for a semester, I saw a different side of America I really never knew existed. I met college students who never held a $50 dollar bill in their hand and who would eat top ramen and worked through high school. This was an eye opener.

InvalidUserID

Jul 9, 2009, 11:05 PM

My parents were very financially well-off but weren't very happy. They had "all of the above" but lived, for the most part, unhappy lives. My father was a doctor who was a workaholic and never really enjoyed anything other than work. My mother was a wedding coordinator who also didn't have much time.

Yes, they had the fancy cars (to drive to and from work and sit in the garage) the big (empty) house and yes, they took fancy vacations occasionally but it didn't hide the other 335 days a year that they were unhappy and unable to just enjoy life.

They eventually would sell the house for a smaller one once I left the nest, sold the expensive cars for more sensible ones and you know what happened? My mother was able to quit her job which improved the relationship which opened my father's eyes and he in turn took early retirement. The result? 365 days of vacationing.

So my measure of financial success is owning "all of the above" and not having "all of the above" own you.

rhsgolfer33

Jul 9, 2009, 11:59 PM

This is a question I struggle with. I suppose I would define it as being able to pay for the things I enjoy, which, unfortunately, are generally expensive. I think in my mind I'll have made it to successful once I've paid off my house (not talking about a mansion, well, at least not to a Californian whose been to Beverly Hills, Bel Air, etc.), have a sizable savings and a good start on retiring around 55, can afford a "weekend car," can be a member at a decent country club (I acquired the costly golfing habit early), and can travel first class when I fly (I'd also very much enjoy being able to spend 4 of my 6 weeks vacation traveling). Fortunately my area of choice pays salaries high enough to do most of this once you reach upper middle and upper levels (especially if you've been conservative with your finances at the lower and middle levels), but the work is quite stressful and involves long hours.

AdamLikesMusic

Jul 10, 2009, 04:24 AM

All would be nice. The poll results aren't too surprising, though. Some options were worded nicer than others. ;)

Abstract

Jul 10, 2009, 09:38 AM

I'm not the type to become a workaholic, or let my work control my life, and I don't think the type of job I'll be doing at a hospital would really ask me to work such a schedule anyway. ;) They close at normal times!

Malfoy

Jul 10, 2009, 09:43 AM

All the above except the house. I wouldn't mind the house but I don't need it. I just want to keep traveling and I'm sure my friends won't mind that I'd leave sports cars in their driveways with a full tank of gas in various parts of the country.

iShater

Jul 10, 2009, 11:24 AM

All would be nice. The poll results aren't too surprising, though. Some options were worded nicer than others. ;)

Ha! Yes, I think I added some editorial comments in them. But this is the interwebs. :p

nobunaga209

Jul 10, 2009, 03:29 PM

Agree with all on zero debt, also would say a healthy sum in investments, savings, and checking. I know it may be somewhat naive, but I always had the notion that once you reach reach the six figure mark that all is well; more money more problems IMO.

ErikCLDR

Jul 11, 2009, 02:17 AM

Some of the richest people I know live very frugally.

I know the VP of Mobile Oil. He drives a lincoln continental and his wife drives a ford explorer. They have a nice colonial house (nothing ostentatious though) and a nice house on cape cod (not ostentatious though either). It's pretty cool that they have millions in the bank but they don't feel the need to go around and flaunt it. They live very simple lives.

I think financial success is being comfortable with what you have. There is always a nicer car, or a bigger house. Its all about feeling secure with what you have, whether you make $50,000 or $500,000 or $5,000,000 a year.