Arranging Financial Priorities Based on a Pyramid

[Suba]

Financial priorities are a sequence of life's necessities and financial goals determined by their level of importance or necessity and their impact on a person's financial condition.
Financial priorities must also be clear, ensuring focused income management because each dollar is allocated according to the budgeted portion, prioritizing the most basic needs before fulfilling the next level of needs.

Every financial expert has a different opinion on grouping needs within a pyramid, but for simplicity, I group them into four levels:
Financial Basics, prioritized for meeting basic daily needs;
Financial Safety, managing emergency funds and retirement funds;
Financial Growth, building long-term finances through investing.
Financial Freedom, the three needs below can be met with passive income.

 

[caleb377]

Yeah, I do my budgeting kinda like this too. Emergency fund first, then a bit of investing if I can swing it. Feels less stressful than trying to do everything at once.

 

[Springtime]

I also set priorities for my personal financial management. When spending money, buy what I need and the basic necessities first. As for savings, set up an emergency fund. If there is spare money, I make investments.

 

[Augusta]

Good to arrange, organize and prioritize monetary goals which can help you reduce and eliminate debt

 

[Starmix]

It's like the hierarchy of human needs by Maslow where the top is the self - realization. In that pyramid scheme, the top is the financial freedom. That's very logical and senseful.