Outside Insight

I recently heard a comment about success and what makes someone successful. I think most people would agree now-a-days that a successful person has THINGS. Their success is measurable by the amount of material things they can show: cars, houses, expensive toys, latest technologies, etc. We live, after all, in a materialistic culture and people are always competing for spending status - Well, mine is bigger. Well, mine is more expensive. Mine is more exotic. Mine is more illegal!?

I know many people with a lot of things, impressive things, expensive things, and definitely too many unnecessary things. Their goal in life is to impress and this is so ingrained in their minds that they fool themselves (not to mention others) into thinking they are successful. However, not everything that shines is gold and if we didn’t put so much emphasis on our material collections we would also not feel so inadequate when someone else shows off their materials.

When it comes to the ways of the world I measure success by financial stability, which is not always measurable by tangibles. We often forget the principals: gross expenses = net and then some. Most Americans have more things than they can own. We have too much debt leaving us with an almost non-existent net worth. A fancy house and cars can be simply borrowed and, with the debt lifestyles we lead in the U.S., it isn’t very hard to have a lot of things and also live on the verge of bankruptcy.

A successful person, in my opinion, is financially smart. A successful person is a strategist, not an opportunist. He/she is smart, not pretentious - borrowing only when crucial, focusing on long term investments rather than superficial ones (like that $2000 LCD TV or the impressive birthday party for the sake of social commentary and status), and not trying to exercise purchasing powers we do not have them. A successful person aims at being debt free and investment healthy. If debt free is not possible, an achievable and active plan of debt elimination and some discipline can go a long way. In mainstream U.S. humility has lost its value. Resisting humility - & living pretentiously - is not a realistic approach for true success (unless you can already afford it). Relying on debt for survival is a strategy that works for banks and the people who manage what we borrow, but not for us. Don’t be fooled.

There are also other aspects of success - personal satisfaction. A person thirsty for materials will never be satisfied and most likely will not be able to find the meaning of happiness either. I’m more likely to admire the person who has achieved his/her goals in career, love, family; has the respect of his/her communities; is independent and empowered; stands by his/her ethical beliefs; and is still an honest & pleasant person. I think of a person like this as a happy person who can be satisfied with life. I realize that now-a-days we don’t look up to these kinds of examples anymore - we might not even really see many examples like that. We care so much about the materialistic realm that we put very little importance on being well-rounded individuals. Honesty is now often understood as naivete, a weakness. However, as we get older we realize (although not always) that we only have one opportunity to live well and that we cheat ourselves of the opportunity by being the perfect zombie victimized consumerists.

As always a healthy balance is required. So if you care about your success, don’t be tricked into thinking that you need to collect material goods at any cost to feel good about yourself, your life, your suceess, or to have friends. Start by learning about finances and debt: if you are a woman don’t leave it up to your husband or father to figure out your finances; buy and learn a financial software to learn what your finances really look like and what you’re doing with it; and create financial plans - including a debt termination plan, savings plan and a life-style budget. Set goals, make plans that include clear stepping stones, and follow them! Make sure that you teach your children economics and planning at an early age - they will benefit greatly from it as adults. It’s one of the ways you can contribute to their success. Even if you’re not interested in riches & materials, you and yours need to be financially savvy and know how your financial decisions will affect you in the future. Day-by-day living, while it may be attractive, relies on the idea that good fortune and destiny will put us on a good path. It also conveniently requires very little work on our part and we should understand that that we reap what we sow. Results require action.

*If you want to share how you changed your financial direction in a positive way please share with us below. Or if you have a different idea of what success means share with us!