Here’s a slick graphic summarizing one’s financial priorities beyond bare essentials. While this is overly exact and most people aren’t so diligent, it’s a great reminder of the basics.
Our general hierarchy for major stages of life is
- Significance – leaving a legacy and/or improving causes you care about.
- Success – greater time control,
- Stability – here you’ve got the basics well under control, and the graph below fits mostly in this stage.
- Survival – fortunately this is for most a passing phase due to impact (say, divorce, tragedy), but this has a hierarchy as well (below).
Here’s a “best practices” stability and moving into success hierarchy.
the above should be overlaid and balanced with…
Should you find yourself in the survival stage, the #1 priority is ensuring and protecting your ability to earn. This would start with any immediate guaranteed (no risk – not commissioned sales unless it has a base or draw on commission, for example) income (i.e. a job, and/or sale of assets you do own), followed by increasing your earnings power as quickly as possible and/or reducing expenses (i.e. move to cheaper city, get a roomate, list your spare bedroom on AirBnB, etc.)