Amazon affiliate sales and other similar programs offer a great way to create a passive income online. Creating niche sites also allow you to generate an additional income stream as well. Though it takes time to develop these avenues, they can be a very effective way to make a passive income.
I feel like that definition will always be changing for me. But, honestly, I think I'm pretty much there.
We're not independently wealthy, we don't (yet) max out our IRAs. But we have an emergency fund and savings are able to save each month. I used to be on disability and thought I'd never be able to work full-time again.
Now I have a job that lets me work from home, and it allowed us to buy a house. The house also meant my in-laws wouldn't be homeless. So every time I see my paycheck or pay extra on the mortgage, I feel pretty successful.
Not having to worry about paying for the basics (food, clothing and shelter - all within reason) with actual cash (not credit) and after putting some aside for a rainy day, a little extra left to spend on things that make life better - travel, the occasional good meal, good chocolate bar, etc.)
It starts with spending less than you make and saving so that you're on track so when you retire your income from that nest egg is enough so money isn't a concern. You don't need to be retired or financially independent to be successful. That would be silly, it would mean the couple with $2M saved by their 50th birthday isn't a success because their goal is $2.5M and they plan to work another 10 years? I believe it's being on the right path. Zero month to month credit card debt is part of this, but I'm not hung up on zero mortgage debt. A retiree looking at their next egg and the 4% withdrawal rate may very well be below budget including a mortgage payment. My $2.5M couple above? Who cares if they still pay $15K/yr to the mortgage from their $100K/year income at retirement?
Financial success to me is no debt, money set aside for retirement, and the ability to pay for everything I need and at least some of what I want.
Setback: Going broke during divorce.
Rebound: Cutting way back on both needs and wants, paying off lawyer debt, and building a retirement fund.
Maintenance: Sticking with the intentional spending, plenty of frugal hacking.
Serendipity: Finding a new partner who is as frugal as I am, and who finds joy in the everyday.
To me, financial success is freedom: the freedom to live your life the way you want because you're not held back by debt. That's why I'm currently trying to pay off my credit card debt because, right now, I'm restricted in doing what I want due to bills. I've paid off my CCs completely before, then racked up more debt. So I'm now trying not to incur any additional debt and pay off what I already have in an effort to be more free.
Financial success for me means that I have successfully cut all of my debt, with the exception of one mortgage. If a mortgage is included, I should have put down at least 10-20% as a down payment, and mortgage payments should be no more than 15% of my gross monthly income (this is my individual contribution, excluding my partner's). Living humbly (not constantly buying new clothes or the latest tech gadgets) but enjoying life through travel, outdoor recreation, etc. is my ultimate priority and being able to accomplish that would spell financial success. I'm in the process of shedding my minimal credit card debt and more substantial student loan debt ASAP. Living humbly also will enable aggressive retirement savings, another cornerstone of financial success, and a 6-month emergency fund.
honest- i just fell upon this one by chance- a lint free cloth dipped lightly in DIET coke and rubbed gently on the surface, makes your monitor screen sparkle like you have never seen!
Financial success is being employed and debt free with an emergency fund and savings for retirement. I'm slowly paying off my debt. I've had several setbacks in the form of layoffs and an apartment fire which was not covered by insurance. I bounced back and found a job and am working toward being debt free.
Financial success, to me, is having confidence, control and freedom with your money. It's not necessarily how much you make, but how well you manage it, and whether you feel empowered by it, or stressed and disabled.
Our success is really defined by the situation we are in. Our current "success" will be to be spending less than what we make, and our next success will be to pay off all of our consumer debt and our vehicles. As we get more successful with the little things we will want to be more successful with bigger things like having a retirement fund and money for kid's college but who knows exactly when that would be.
I agree with you, I love the meal plan as well but remembering all of the items when hitting the store is the key. When you don't have all the ingredients, it misses the point a bit. Overall a fantastic article.
I would define financial success as having zero debt, a good sized emergency fund, and enough savings and investments to be financially independent. My wife and I are mostly there (no debt w/ emergency fund), and expect to be financially independent in a few more years.
For me financial success means living without debt and unnecessary waste, being able to make the full yearly contributions to a Roth IRA, and working as much (or as little!) as I want without living paycheck to paycheck.
I'm only a few years out of college and things have been much more difficult financially than I imagined, but I have healthy saving/spending habits and only $15,000 in student loan debt, so once I get that paid off I should have no problem building my wealth.
Even on my measly income ($25,000/year) I have managed to pay off $4,500 in credit card debt and $5,000 in student loans in less than two years. My goal is to have my student loans paid off by the end of 2015, and then I can shift my focus to saving for retirement. :)
Financial success is not having to worry about the day to day living expenses or the unexpected. It is about handling money in a reasoned way so that the big stuff takes care of itself. We buy on clearance (the prices can be better than used). We save for the expected expenses monthly even if the expenses are annual (life insurance, taxes, Dues). We discuss big purchases and think about them. Savings is not the driving force behind spending; spending is. How much are we spending and is the purchase worth it.
When the little stuff is automatic and we can take care of our family, we have reached financial success. When we can see the end of the mortgage and there is no other debt, we have reached financial success. When we can leverage income, savings, credit cards and anything else and STILL not have debt, we have reached financial success. When we are not wasting money on things or services we do not need (and we need fewer of them), we have reached financial success. When we have passed this on to our kids, we have reached financial success.
Sadly, right now any month where we spend less than we made is a financial success.
Amazon affiliate sales and other similar programs offer a great way to create a passive income online. Creating niche sites also allow you to generate an additional income stream as well. Though it takes time to develop these avenues, they can be a very effective way to make a passive income.
Not being in debt; spending less than you earn so you can set aside savings every month to use wisely.
I feel like that definition will always be changing for me. But, honestly, I think I'm pretty much there.
We're not independently wealthy, we don't (yet) max out our IRAs. But we have an emergency fund and savings are able to save each month. I used to be on disability and thought I'd never be able to work full-time again.
Now I have a job that lets me work from home, and it allowed us to buy a house. The house also meant my in-laws wouldn't be homeless. So every time I see my paycheck or pay extra on the mortgage, I feel pretty successful.
Not having to worry about paying for the basics (food, clothing and shelter - all within reason) with actual cash (not credit) and after putting some aside for a rainy day, a little extra left to spend on things that make life better - travel, the occasional good meal, good chocolate bar, etc.)
It starts with spending less than you make and saving so that you're on track so when you retire your income from that nest egg is enough so money isn't a concern. You don't need to be retired or financially independent to be successful. That would be silly, it would mean the couple with $2M saved by their 50th birthday isn't a success because their goal is $2.5M and they plan to work another 10 years? I believe it's being on the right path. Zero month to month credit card debt is part of this, but I'm not hung up on zero mortgage debt. A retiree looking at their next egg and the 4% withdrawal rate may very well be below budget including a mortgage payment. My $2.5M couple above? Who cares if they still pay $15K/yr to the mortgage from their $100K/year income at retirement?
Financial success to me is no debt, money set aside for retirement, and the ability to pay for everything I need and at least some of what I want.
Setback: Going broke during divorce.
Rebound: Cutting way back on both needs and wants, paying off lawyer debt, and building a retirement fund.
Maintenance: Sticking with the intentional spending, plenty of frugal hacking.
Serendipity: Finding a new partner who is as frugal as I am, and who finds joy in the everyday.
This sounds like a great book! I need all the motivation I can get (especially with finances) and who better than a soldier to help motivate others?
To me, financial success is freedom: the freedom to live your life the way you want because you're not held back by debt. That's why I'm currently trying to pay off my credit card debt because, right now, I'm restricted in doing what I want due to bills. I've paid off my CCs completely before, then racked up more debt. So I'm now trying not to incur any additional debt and pay off what I already have in an effort to be more free.
Financial success for me means that I have successfully cut all of my debt, with the exception of one mortgage. If a mortgage is included, I should have put down at least 10-20% as a down payment, and mortgage payments should be no more than 15% of my gross monthly income (this is my individual contribution, excluding my partner's). Living humbly (not constantly buying new clothes or the latest tech gadgets) but enjoying life through travel, outdoor recreation, etc. is my ultimate priority and being able to accomplish that would spell financial success. I'm in the process of shedding my minimal credit card debt and more substantial student loan debt ASAP. Living humbly also will enable aggressive retirement savings, another cornerstone of financial success, and a 6-month emergency fund.
honest- i just fell upon this one by chance- a lint free cloth dipped lightly in DIET coke and rubbed gently on the surface, makes your monitor screen sparkle like you have never seen!
Having no debt & not owing anyone anything!
Financial success is being employed and debt free with an emergency fund and savings for retirement. I'm slowly paying off my debt. I've had several setbacks in the form of layoffs and an apartment fire which was not covered by insurance. I bounced back and found a job and am working toward being debt free.
I think financial success is when you have enough passive income and you don't have to work anymore
Financial success to me is paying off a credit card, thus getting closer to being debt free!
Financial success, to me, is having confidence, control and freedom with your money. It's not necessarily how much you make, but how well you manage it, and whether you feel empowered by it, or stressed and disabled.
Financial success for me means living debt free, being financially independent!
Our success is really defined by the situation we are in. Our current "success" will be to be spending less than what we make, and our next success will be to pay off all of our consumer debt and our vehicles. As we get more successful with the little things we will want to be more successful with bigger things like having a retirement fund and money for kid's college but who knows exactly when that would be.
I would love to win.Thanks for the chance.I really could benefit from this book.
I agree with you, I love the meal plan as well but remembering all of the items when hitting the store is the key. When you don't have all the ingredients, it misses the point a bit. Overall a fantastic article.
I would define financial success as having zero debt, a good sized emergency fund, and enough savings and investments to be financially independent. My wife and I are mostly there (no debt w/ emergency fund), and expect to be financially independent in a few more years.
I would feel successful if I had all my needs met, with a few comforts/wants on top.
For me financial success means living without debt and unnecessary waste, being able to make the full yearly contributions to a Roth IRA, and working as much (or as little!) as I want without living paycheck to paycheck.
I'm only a few years out of college and things have been much more difficult financially than I imagined, but I have healthy saving/spending habits and only $15,000 in student loan debt, so once I get that paid off I should have no problem building my wealth.
Even on my measly income ($25,000/year) I have managed to pay off $4,500 in credit card debt and $5,000 in student loans in less than two years. My goal is to have my student loans paid off by the end of 2015, and then I can shift my focus to saving for retirement. :)
I define it by being debt free!
Financial success is not having to worry about the day to day living expenses or the unexpected. It is about handling money in a reasoned way so that the big stuff takes care of itself. We buy on clearance (the prices can be better than used). We save for the expected expenses monthly even if the expenses are annual (life insurance, taxes, Dues). We discuss big purchases and think about them. Savings is not the driving force behind spending; spending is. How much are we spending and is the purchase worth it.
When the little stuff is automatic and we can take care of our family, we have reached financial success. When we can see the end of the mortgage and there is no other debt, we have reached financial success. When we can leverage income, savings, credit cards and anything else and STILL not have debt, we have reached financial success. When we are not wasting money on things or services we do not need (and we need fewer of them), we have reached financial success. When we have passed this on to our kids, we have reached financial success.