Page 548 - Introduction to Business

522 PART 5 Finance

that is, assets barely exceeding liabilities, then a financial emergency could put you
in a precarious situation. A primary financial goal should be to increase your net
worth by decreasing your liabilities, increasing your appreciable assets, or both.

Setting Financial Goals

financial success Having enough Have you set any financial goals? Do you want to be a financial success? Financial
money to pay for one’s living expenses success means having enough money to pay for one’s living expenses, and at the
and at the same time saving enough to
meet future financial needs same time saving enough to meet future financial needs. Do you want to be inde-
pendently wealthy? To be independently wealthy means that you have enough
independently wealthy Having enough
money so that it is no longer necessary money that you no longer need to work to pay for your living expenses. Ultimately,
to work to pay for living expenses at some point in your life, you will probably no longer be able to work. You will then
live on your investments, pension, government transfer payments, or charity.
wealth An abundance of worldly Wealth is defined as an abundance of worldly possessions. Wealth can also be
possessions defined as the amount of money necessary for personal contentment. Are you
wealthy? Some people do not consider themselves wealthy even though they have
millions of dollars. The amount of money necessary to be considered financially
successful or independently wealthy varies greatly among individuals. Real success
involves many dimensions, not just money. The greatest success is measured by
character and personal integrity, not fame and fortune. Even so, a person of char-
acter and personal integrity should strive to be a financial success. Financial suc-
cess enables a person to provide for his or her own needs and to help others. Finan-
cial success does not usually happen overnight, but it can happen for anyone who
is willing to make good plans and stick to them.
The starting point in achieving financial success is to know and accept where
you are today. If you are in poor financial condition, don’t give up. The productive

A retired shipping clerk volunteers
his time to care for infants in the
neonatal intensive care unit at
Oklahoma University Medical Cen-
ter Children’s Hospital. If he had not
been financially prepared for
retirement, he would have been
unable to donate his time to this
excellent cause.

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