These Factors can Influence Financial Success

What do wealthy people do or have that enables them to accomplish so much more than the average? I believe that these people are successful as a result of what I call leverage. 

Of the thousands of decisions we make each and every day, many of them have at least an indirect impact on our finances. That’s not to mention the times that you are directly faced with a major financial decision such as how to invest your retirement contributions (Roth or traditional?!), buying a home or whether it’s worth it to go back to school and get an advanced degree.

Leverage is the key to maximizing and multiplying your potential for success and financial achievement. Here are three examples of leverage that you can develop to achieve financial independence:

  1. Become an expert in your chosen field. Read all the books, take all the courses, listen to all the audio programs. Second, specialize in those areas that are of greatest importance and greatest value to your company or to your customers. Third, know your product or service inside out. Aim to be recognized as the industry expert in your field. Remember — the person who has the expertise has a far greater contribution to make than the person whose knowledge is just average.
  2. Acquire the necessary skill. The better you are at your job, the more you will be paid. The top 20 percent of salespeople earn as much as 10 and 15 times the average earnings of the bottom 80 percent. There are three keys to developing the leverage of skill. First, make a decision to be the best. Pay any price. Make any sacrifice. Go any distance to become excellent at what you do. Second, engage in continuous improvement. Never allow yourself to become satisfied or complacent at your current level of skill. Third, always strive to exceed the expectations of your customers, of your boss, of the people you serve. Always do more and better than you’re paid for.
  3. The third type of leverage is money. Money is a powerful source of leverage and usually follows the development of knowledge and skill in your field. One of the reasons it takes money to make money is that the accumulation of funds is an essential step in the development of the personal qualities and character that must precede the achievement of financial independence. In other words, you become a person capable of becoming financially independent by accumulating the funds that are necessary for you to achieve it in the first place.

In Financial decision making, it’s easier for some people than for others to make good financial decisions, both big and small, depending on a number of different influential factors. By understanding some of these factors, you can learn a little bit more about yourself so that you are equipped to make better financial decisions.


Whether you are naturally a spender or a saver will have a big impact on your finances. It seems to hold pretty true that there’s one of each in most relationships and that can make it challenging for either partner to learn to deal with combining finances when you don’t have complete control over the money.

A natural saver may have an easier time making good financial choices. However, there’s still hope even if you tend to be a spender. Flexible budgeting and setting clear financial goals can help you to keep the right perspective, while still enjoying life.

In addition, some personality traits including procrastination, stubbornness, pessimism and a predisposition for addictions will all have a negative impact on your finances. And everyone’s emotions causes them at times to make bad decisions such as when you’re angry, frustrated or bored. When you’re happy it may be easier to be more content with your life and not feel that you need to buy things to improve it.

Your level of discipline in all areas of your life can help you to conquer your finances and create a life you love, even despite your weaknesses (we all have them!). Sometimes it’s as simple as just getting started and making small changes.


All of our life experiences collectively shape our views of the world and directly affect our thoughts and actions.

Each generation has faced their own unique challenges from baby boomers to millennials. As for millennials, a lot of us graduated from college around the time of the great recession in 2008-2009. Most millennials were faced with large student loans, but minimal employment prospects.

All of your past experiences working, investing and even budgeting influence your current decisions. Investing involves determining your risk profile, and this is almost entirely shaped by your past experiences.

The example our parents or caregivers set financially can explain the nurture side of the nature vs. nurture argument. In addition to our individual personality traits, this is one of the biggest factors that affects your finances.

The good news is that parents that provide good examples of frugality and saving money for the future are more likely to have kids that are also good with money. The bad news is that those who live paycheck-to-paycheck and fund their lifestyle with debt are more likely to have kids that are financially unstable. T. Rowe Price conducts an annual Parents, Kids & Money Survey and you can see a great summary of the results in PRNewswire’s article here.


Maslow’s hierarchy follows that your most basic needs need to be met before one will be motivated to other needs and wants. The hierarchy follows this order, summarized from Wikepedia:

Image result for Maslow’s hierarchy
  • Basic Needs: These are the absolute basic human needs for air, water, food, clothing and shelter. Except for air, all of these things cost money and will be the first thing people prioritize in their finances.
  • Safety: Safety needs stem from a person’s innate desire to live without physical and emotional pain. We all seek safety from war, natural disaster and violence, but on the financial side, this will also include job security, emergency funds, and insurance policies.
  • Love & Belonging: Everyone has the desire to find their place in the world and build relationships of some sort. The lack of feeling love & belonging can lead to depression and anxiety, which can have serious detrimental effects on your finances.
  • Esteem: Next is the need for respect and acceptance. The need to fit into society and keep up with the Joneses can sometimes lead people to get into significant debt to impress or please others or engage in overspending instead of saving for the future. Alternately, others can find a great deal of esteem in getting promotions and opportunities that help financially.
  • Self-Actualization: Only after all other needs are conquered, can one realize their opportunity to reach their full potential. Imagine that you have more money than you need for your basic needs and wants. What would you do with your life if money was no object?

In addition to the way that your needs impact your finances, it is obvious that significant physical or mental problems can impair your ability to both earn income and manage it on a regular basis.


We often become oblivious to things that we just see as normal, however, not everyone has a big home, fancy cars and toys as their ultimate goals in life.

For example, in Korea, it’s not common to ever meet someone at their home, so their cars are their biggest status symbol. Plastic surgery is also super common, so many parents start saving at their kid’s birth to pay for this in the future. Koreans tend to be much more frugal in everyday life.

Social media has had a significant impact on people’s finances. Pinterest may convince you that there’s a perfectly styled home or lifestyle out there for you. Facebook and Instagram will show you the amazing homes, vacations and other experiences of those in your network and make you feel like a failure unless you have your own successes to show publicly.

It’s not only okay to be different and go outside social and cultural norms where you live, it is the way to real success! It does require knowing what you really want and setting clear financial goal.


Ignore certainly isn’t bliss when it comes to your finances. Not tracking your expenses and net worth will ensure that you never achieve financial independence. Not learning about investments will solidify your need for someone else to make those decisions for you, which will result in hefty fees that take away from your returns or decisions made that are not in your best interest. Not knowing how the tax system works will definitely result in thousands of dollars more in taxes in the future.

Knowledge is power and in this case, knowledge is money. The more you read and learn about personal finances, the better off you’ll be financially. Start by learning the basics of creating a budget and then move on to debt management and simple investing. Keep learning and implementing and you’ll find yourself becoming more wealthy.

In conclusion, First, resolve today to become an expert in your chosen field. Set it as a goal, make a plan and work every day to become a little bit better in the most important things you do.

Second, develop the habit of saving money out of every single paycheck. It was once said that “If you cannot save money, the seeds of greatness are not in you.” The very act of regular saving changes your character and gets you ready to achieve financial independence. 

Don’t let the external, or even internal factors decide what happens to you! Don’t accept the default, which is to go through life following society’s preconceived notions that you need bigger and better and you need it right now.

A life worth living is one that is on your own terms and takes you on the path that you create for yourself to a well-thought-out destination of your own choosing. Take everything you’ve been given and create a life you love from it, one dollar at a time.

Do You Need Accounting Help?

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