Success Formula - E + R = O

This morning, I read a book as part of my initiative - Book of the month namely "How to get from where you are to where you want to be", written by Jack Canfield. I read an interesting point from this interesting book that i would like to share here.
Everyone talks about Success Formula and he has given it like this: E + R = O where
E = Events
R = Response
O = Outcome.

In a crux, the Outcome or the Result of any Event in your life depends upon how you Respond to it. Here is the customized example to illustrate it better:
Scenario - 1
Event : You got a INR.20,000/- bonus this month with your pay package
Response: You spent ALL of them on reducible expenses like Lottery Ticket etc.,
Outcome : You are still short of that 20,000 on your essential expenses or broke.

Scenario - 2:
Event : You got a INR.20,000/- bonus this month with your pay package
Response: You invested that on an intelligent investment instrument like top-20 mutual fund.
Outcome : You have increased your net worth.

As illustrated above, the response to a particular event can easily change out of Outcome of it.

On an introspection, lot of good and bad things happened in my life depended largely on how I responded to it (emotional, pshycological, egotistical, egoistical, ....so on). Had I changed or delayed my responses, i may have gotten a better results, think about it!!

How do you perceive this formula on your introspection??? Share it with me!!