6 Ways ‘Achievement Culture’ Can Wreck Your Finances
Written by
Nicole Spector
Edited by
Molly Sullivan
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“Practice makes perfect.”
“Are you successful?”
“Fake it ’til you make it.”
We get so many messages like these from society. Messages about what we’re made of, what we’re worth and how we will or won’t meet our full potential. To an extent, this messaging contributes toward “achievement culture,” and though achievement culture can be motivating, it can also be ruinous — not only for your mental health but for your money.
Defining ‘Achievement Culture’
What do we mean when we say “achievement culture”?
“Achievement culture is the mindset where success is measured by constant accomplishments, productivity and career milestones,” said Cliff Ambrose, FRC, founder and wealth manager at Apex Wealth. “It’s rooted in the idea that your worth is tied to how much you achieve, whether that’s in your professional life, education or even personal hobbies. Over time, this culture has grown through societal expectations, the influence of social media and the pressure to continuously improve.”
Achievement Culture Can Cause Overspending
Now, what are some of the ways in which achievement culture can hurt your finances? For one, it can drive you to spend beyond your means.
“The constant drive for more can lead to overspending,” Ambrose said. “People often spend money on things that symbolize success — whether it’s the latest tech gadget, luxury clothes or a bigger house — even if they don’t need them. Keeping up with a lifestyle that matches what you think you should achieve can easily lead to debt or living paycheck to paycheck.”
It Can Spur Rash Decision Making
Achievement culture can cause you to try too hard to stay on whatever track society (or your industry) says you should stay on, and you risk making important financial decisions in a hurry.
“There is nothing wrong with working hard, but where achievement culture can hurt your finances is if you are making rash decisions to try to keep up,” said Erika Kullberg, a personal finance expert, attorney and the founder of Erika.com. “For example, if you start investing money without doing your research because it feels like that’s what everyone else is doing. Or you may decide to throw a ton of your savings into starting a small business that you weren’t fully ready to commit to.”
You Could End Up in a Job You Hate
The pressures of achievement culture could drive you to seek a high-paying career that you don’t actually want or even like. And there’s financial risk inherent in having a career that doesn’t align with your passions.
“This tunnel vision and narrow career focus can lead to job dissatisfaction and burnout, ultimately affecting long-term earning potential and financial stability,” said Gloria Garcia Cisneros, wealth manager at LourdMurray.
It Can Create Student Loan Debt
“If we go back a little bit more, achievement culture can even affect us financially when we are young students,” Cisneros said. “The pressure high school graduates may feel to attend glorified elite universities can result in significant student loan debt. Many individuals take on financial burdens that affect their ability to save for other important goals, such as homeownership or retirement. In today’s society, we know how prevalent student loan debt is.”
It Can Trigger Risky Investments
Achievement culture can negatively affect financial planning when people are so compelled to succeed that they assume too much risk with investments.
“The drive for rapid success may encourage individuals to engage in high-risk investments or speculative ventures in hopes of quick financial gains, the get-rich-quick scheme or a winning stock mentality,” Cisneros said. “This behavior can lead to substantial losses and jeopardize long-term financial security.”
You Could Bypass Financial Education
Cisneros said that the achievement culture mindset can also overlook the importance of foundational financial education and planning.
“Because some may be seeking external achievements, many overlook the importance of developing sound financial management skills,” Cisneros said. “A lack of budgeting knowledge, investment understanding and retirement planning can create vulnerabilities that hinder financial growth in the long run.”
Focus On Your Habits and Your Goals — Not Only Your Accomplishments
It’s hard to turn the volume down on achievement culture, and, to some extent, we do need a little bit of it to thrive so we shouldn’t tune it out altogether. But we need to pay less attention to what we get, and more attention to what we do. And we need to stop caring about how we measure up to people we know. We’re living our lives, not theirs.
“Doing well with your money is little about how you invest, and more so with long-term habits of income, spending and letting your money grow in the stock market for long periods,” Cisneros said. “This is not a flashy or highly visible thing that can be compared to others with the achievement culture so this can be minimized for its importance.
“True financial success is not solely defined by external achievements,” Cisneros said. “I would go as far as to say it isn’t defined by this at all. One needs to create a secure and fulfilling life that resonates with their needs. Money is simply a tool that should allow you to live your best life.”
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