This is an interesting question. It's something that I've always thought of which is something that think of everytime. I guess, at this moment, I am at the moment moderately successful. I have a roof above my head, I have food to eat, clean water to use and a beautiful and good wife. This year I have been rather more successful in comparison with the last year in terms of the quality of my life.
I have started my life now as a freelancer this year. It really works out well at the moment. Things have been great. I think the net worth of a million would be good. I know many people have said that a million isn't anything nowadays in our life. I believe that if I had a million to start with, I would be able to slowly expand that money to 2 million and increase it. I would then invest that money in a business, stocks and etc. I won't spend any of those cash on unnecessary stuff. I would put money into those accounts which I can't really touch the cash. In this way, I would feel poor even when I had a million in my own bank. Then I won't simply buy luxurious stuff to show off to people like a brand new car that just serves the purpose of bringing me from point A to B.
I guess, to start off a net worth of at least 500k would be good enough. It is enough to survive frugally and yet there is a lot of areas to explore which can be really useful to create more wealth
For me the answer is simple.
There is no exact number for which I could measure financial success. It would simply be encumbrant on whether or not I can live comfortably, without needing to worry about money,
To me, this is the true measure of financial success, and I am keeping it strictly on finances, as this is the question. There are more type of success than just financial of course.
If I reach a point, where money is no long an object in my life, to where I don't need to worry about managing bills properly without going broke, and without making major sacrifices of needs or wants because of financial limitations, then I feel it would be safe to claim I have managed to become financially successful.
Simply put, when money is no longer something I need to think about or worry about, I have become financially successful.
I hope this answer helps.
More than enough to cover any debts, have some financial security for the future, and enough to engage in leisure. Financial success at an individual level is financial freedom. The type where you don't have to worry about a price tag and can buy stuff you want because you know you can afford it. By afford, I don't mean having the physical money to purchase it, I mean having the means to take something out of your resources without any serious consequences on your financial health. Along with that, I think being financially successful also means having enough level of financial literacy to keep your wealth protected and allocated to where it's supposed to be.
I think for you to be considered a financial success is financial freedom. Enough money to never worry about money again is success.
If you made it on your own then you will look after it even more carefully so you should be secure for life. Enough money that you never have to worry again is my idea of success.
Financial success is everyone's dream, but one that must be considered is financial freedom. Financially successful people are not necessarily financially free.
The biggest mistake people make is to pursue wealth by assuming that wealth means debt free and financial freedom. But you don't need to be rich to be financially free.
Financial Freedom Doesn't Mean Rich and Debt Free
Many people say they want to get rich and get financial freedom, but in fact being rich and debt free is not necessarily becoming financially free.
The strategy for getting rich and strategies for achieving financial freedom are very different, so you need to manage your wealth appropriately to achieve financial freedom.
In my opinion, Previously Financial Free, Rich Then.
Have you ever seen a rich person who continues to work hard to maintain his wealth? This happened because he had not achieved financial freedom.
Being financially free is easier than being financially successful, so you should first target financial freedom before pursuing financial success.
To get financial freedom, you can live properly and adequately and be debt free, without the need to think about making money to live in luxury.
Any individual who profits from cash rather than individual work is wealthy in my book. That sort of total assets without a doubt makes enough benefit from investments that working for a salary is not really required. Except if one carries on with a lavish way of life.
Pwersonally If my house were paid off and I had 100 grand in the bank I wouls be very financially stable. That is just me personally though.
In developed countries, roughly one million USD is enough to generate sufficient capital gains for one adult to live on (and support one minor) and have a lower middle class lifestyle. The stock market has historically yielded 9% before taxes and inflation, so if inflation is 2% annually and taxes are 30% of the capital gains, that leaves 4%, which translates into $40,000 of after taxes and enough re-invested to offset inflation. One adult can live and support one minor, if necessary, on that quite comfortably in most of Europe and North America. So, if you have roughly a million in the bank (in USD, EUR or GBP), then you'll be set for life without having to work for a living.