Your search ends here. Yes, today I will share with you the formula of success, which you’ve been searching for so long. I have applied this formula on me and I am getting good results. I am sure this will work for you too. Whichever way you define your success, the formula of success is same…you just have to change the ingredients.
Success can mean different things to different people. Some define success in monetary terms, some feel that success is all about spiritual enlightenment or emotional stability. For some the success is about keeping happy, healthy and living a stress free life, some relate it to workplace promotions and appraisals.
Now in planning terms, would this be fine if I call your definition of success as the goal you want to achieve. Like if your idea of success is to have enough time to spend with your loved ones, without being worried on the income part, and then this is your goal you want to achieve, right?
So in another way , we can call success as achievement of a goal or something that makes you happy. That goal can be financial, emotional, physical or anything you wanted to achieve.
What is success to me?
For me success is all about staying happy. To me happiness comes when I can support my parents comfortably without disturbing my own personal financial plan, I feel happy when my clients call me before making any big financial decision, when they trust me so much that they want to name me as their kids guardian in case of their absence, when they refer me to their friends without me asking for any reference. I feel successful if I wake up daily at 6:00 am and go running; I am successful if I come back home from office at 7 P.M., and do not bring office work back home. Sometimes I feel successful when I complete reading one book and move on to the other. Though I am struggling with waking up early and reading books …but I am trying 😉
Thus my definition of success moves around money, knowledge, honesty, health, family. I feel that to call myself successful I should have to improve in these specified areas. To me keeping a balance in all these is very important. Like I don’t want to compromise on honesty, health and family to earn more money, without knowledge and honesty I would not be able to gain trust of my clients, what is the point of having knowledge when you cannot convert it into income, what is the use of having money if I cannot spend time with my family.
I am sure you also have your own definitions of success and are working out ways to achieving your target. But i believe that the formula of success which i am sharing here with you, will makes things easy to understand and achieve .
So here is the formula which we financial planners usually use to find out many of the financial answers, but the same formula fits in every slice of life.
The formula of success goes like this:
Future value= Present Value (1+r)n or Success= Efforts (1+results)time
Let me first explain this “formula of success” components to you-
Here the Future value means what you want to achieve or what is your target. Future value is your success figure, which may or may not be monetary.
Present value is the efforts you put in to achieve the desired results. If success means being best at everything you do, then this clearly calls for more efforts.
R is the return you get on your efforts or it is a factor on how fast your efforts are converting into results.
And n is the time i.e. how much time you have or give to your efforts to reach the goal.
In financial terms future value is the monetary figure targeted to achieve, like for retirement, children future etc. Present value is the money you invest, r is the return you get or expect and n is the number of years you keep your investments for or stay invested.
The problem with financials as well as personal life is that you focus more on “r” rather than “PV” or “n”. Iin reality r (rate of return / result) is not in anyone’s control but efforts (PV) are.
You have to respect time (n) in your life and the earliest you learn this, more favorable results you get. The more efforts you put in and that too on regular basis, you will definitely get better results even with low returns. If you work only for “r” then you are bound to make mistakes. (Read : Financial Mistakes of my life)
This works in every field of life – for example, you cannot lose weight just by dieting, you have to work out on regular basis too, you cannot become a graduate by just entering the college…you have to put in some efforts in study, You should not expect promotion the same year you enter into a new job…you have to perform regularly and give time to it.
Here ‘n’ is the most important factor. It results in compounding of returns. More the ‘n’ better would be the results, in any form you want to see it as. Like if you start inculcating family values in your kids from their early years, you will find them to be a better human being when they grow up, just like if you start saving early for your retirement you need to put in lot less money as time(n) is on your side.
Keeping the returns constant, it is clear that if you have longer time frame than you can start with a small but regular and consistent efforts, where as if the time frame is short and goal is big then you have to put in more efforts to achieve desired results. As they say there’s no short cut to success and you have to earn it with your efforts.
Define your goals, figure out what you have to do to achieve that, give your best efforts, plan out your strategy, devote yourself to your goal and follow a process. If you are consistent in your efforts, you will surely compound on blessings, love, happiness and yes on money too. ( Read : financial success is not about money…its about your happiness)
But as they say you cannot get everything in life so you have to settle down at some point and many times compromise with some of your goals. And sometimes your success parameters are so subjective that you won’t be able to quantify that. But this should not stop you from making efforts.
Always remember, success comes to those who take actions….if your PV is ZERO, you should not expect FV.
Isn’t this formula easy to understand and work on? What is your formula of success?