Life Bites Series. Self Esteem is vitally important for without it we can lose out on a lot in life including our jobs and allowing ourselves to be happy. Self esteem is what we think about ourselves and our standing in life. It's not being arrogant it is understanding who we are which is totally different and it also puts into place our standing and relationship with others and life itself. We are all different and there isn't such a thing as "one size fits all" but we have to understand where we are placed.