03 Feb The Real Secret to Financial Success – It’s Not Just About the Money!
Is there a magic formula for financial success? Over half of Americans (52%) believe that the golden number is an average annual salary of $270,000 per year, with a net worth of $5.3 million.
But here’s the thing—most people don’t measure success by wealth alone. In fact, only 27% rank money as the ultimate marker of financial success. Instead, it’s all about happiness (59%)—having the freedom to spend on what brings the most joy, doing what you love, and having the luxury of free time (35%) to pursue passions.
What Does It Take to Be Financially Successful?
People say success comes down to the “Factor of Four”:
✅ Hard work (84%)
✅ Talent (65%)
✅ The Network Effect—who you know (55%)
✅ Luck and circumstances (51%)
Beyond that, vision and relentless effort make a difference. About 36% believe the secret is having a big-picture mindset, while 32% say outworking everyone is key—especially those earning over $100K (40% hold this belief).
Smart money moves matter, too. Over one-third of people (35%) go by the “pay yourself first” strategy—saving and investing before spending. Meanwhile, 1 in 5 Gen Zers and Millennials (19%) admit to embracing a “fake it ‘til you make it” mindset.
The Financial Success Gap
Even with all this in mind, nearly half of Americans (47%) don’t believe they’ll ever reach their definition of success. Right now, only 37% consider themselves financially successful—and men (42%) feel this way more than women (33%).
The classic generational yardstick—doing better than your parents—also isn’t a given. Only half (50%) believe they are or will be better off financially than their parents.
What’s Holding People Back?
The road to success isn’t always smooth. The biggest barriers include:
🚧 A struggling economy (35%)
🚧 Irregular or insufficient income (30%)
🚧 Not setting clear financial goals (28%)
🚧 Procrastination-delaying financial decisions (26%)
🚧 Lack of financial knowledge (20%)
Bad money habits play a role, too. People point to overspending (37%), lack of savings (35%), and debt (36%) as common roadblocks.
The Bright Side: Optimism for the Future
Despite these challenges, most Americans (58%) believe they’ll achieve financial success in their lifetime. The younger generations are the most confident:
📈 Gen Z – 71%
📈 Millennials – 70%
📉 Gen X – 53%
📉 Baby Boomers – 45%
What Does Success Actually Look Like?
For most people, financial success isn’t just about wealth—it’s about what money enables them to do. Key markers include:
🏡 Owning a home (52%)
💡 Paying bills on time (63%)
✈️ Affording experiences like travel (47%)
🏖️ Retiring at a goal age (40%)
😊 Enjoying their job while they work (42%)
A solid financial plan also makes a difference. 45% say having a strategy is crucial, whether it’s through a retirement plan (30%) or investing in stocks (27%). And when it comes to financial wisdom, 1 in 3 (30%) believe getting good advice is invaluable.
The Takeaways: What Really Drives Success?
💰 Making it: The top success factors? A well-paying job (51%), saving early and letting compound interest work (46%), and smart investments (46%). Oh, and the golden rule—never spend more than you make (52%).
🎲 Risking it: Nearly 1 in 4 (23%) say taking calculated risks is essential to growing wealth, while a third (34%) stress the importance of prioritizing time wisely.
🌎 Society vs. Personal Success: While society tends to equate success with wealth (59%), power (44%), and fame (35%), most individuals prioritize happiness and fulfillment over just having money. In fact, only 6% personally value power as a marker of success.
🏦 Success Through the Generations: 60% of Americans believe financial success is harder to achieve now than in previous generations, with Millennials feeling this most (69%). However, 83% agree that every generation defines success differently.
💡 Success is Personal: Most Americans (71%) believe there’s no single definition of financial success—but 61% say you can never have too much money.
🩺 Health = Wealth: More than a third (35%) believe physical well-being is just as important as financial success.
💼 Success at Work: Salary (38%) is key, but benefits like healthcare and time off (36%) matter too. Job satisfaction is just as critical—35% say finding the right fit is a success factor, and nearly a third (29%) believe having a great boss is invaluable.
🎓 Does College Matter? A degree may help, but only 35% believe the college you attend determines how wealthy you’ll become—most (65%) disagree.
The Bottom Line
Financial success isn’t one-size-fits-all. While money plays a role, true success is about freedom, security, and happiness. Whether it’s through smart investments, hard work, or financial planning, the path to success looks different for everyone. What does financial success mean to you?
The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Third-party data is obtained from sources believed to be reliable; however, Stephen & Associates cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.
Certain sections of this blog may contain forward-looking statements from Empower “Secret to Success” Study 2024, that is based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.
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