The Hierarchy of Financial Needs

[@bradyrussell8963]

Level 1 - Survival: Covering essential expenses. Level 2 - Sustainability: Covering all expenses including debt. Level 3 - Accumulation: You are making more than you spend. Level 4 - Independence: When investments and passive income cover your expenses. Level 5 - Utilization: Align spending and giving with your life's purpose.

[@dallassegno]

passive income is fake unless you write a hit song

[@mello4399]

​@dallassegno I think stocks can be a passive income

[@jordanov5617]

I find this point of view shallow, here's better one: 1. Survival - you are drawing to get some money 2. Stability - you have enough money 3. Growth - you cracked the code, you have business now that gives you a lot of money based on you intellectual work so that you don't have to invest time to get money anymore Always be careful with this: - Do not be at rat race! Make savings and spend rationally! - Do not brag with your money and spend it to "show off" pursue a meaningful path. - Do not fall for "people in need" trap that happens to be "people who know you have money and want to spend it" - Do spend money generously, giving is gaining - If you are in survival stage, generously for you mean "generously for YOUR NEEDS", leave beggar to other people... Examples: - You are passing by some beggar on street and you think you EXACTLY know how he feels because you yourself are in Survival mode, you give him something you have... You feel better, and inspired to work harder next day for that. WRONG choice! You should help yourself getting out of Survival stage. - You are passing by some beggar and you feel pity for him since he is not smart like you to survive in this hostile world of ours (You are in stable stage). You give him more then collage student working part time job would earn working 2 days in a row just because you CAN, and you ARE nice person. WRONG choice! Try do some good without telling anyone, then you will be on "nice person" path... ************************************************************ About his categorization... Once you get out of Level1 you are automatically in Level3. There is no way you have "just enough" money, what actually is case when you get out of Level1 is that you either do save money or you increase your spending alongside with your income. When it comes to "Utilization" it doesn't make sense to make SEPARATE level for when you are able to invest in your dreams materialistically. One should always pursue life purpose, there is no amount of money you need for that.

[@AlexFlavell]

I’ve also heard Utilization be called “Abundance.” More money than you’ll need above and beyond FI

[@NextLevelLife]

A good descriptor as well :)

[@djpuplex]

Much like the actual Maslow hierarchy of needs most people are lucky if they get past the first two levels.

[@MotoMatsalleh]

Blessed yes, but i dont think luck is the only factor

[@neilcook1652]

The harder you save and invest the luckier you get !

[@htsyami]

Fortunate = 90% disciplined effort + 10% luck. That’s how I like to look at anything worth pursuing, financial and otherwise.

[@themusicman669]

@@MotoMatsalleh Luck doesn’t exist

[@DesertWolfSurvival]

😂

[@wayando]

Overcoming level one and two is a huge nightmare! ... After that it's all about getting your emotions stabilized and then the system is rigged in your direction ... The wealth and personal networks tend to just keep growing almost automatically.

[@russellfernandez57]

Thank you for creating original content. It's so nice to see something like this rather than the kind of garbage you see floating out there 😌😌

[@NextLevelLife]

I'm glad to hear that you're enjoying the content :)

[@freethinker3083]

Very beautiful, well explained video. This really can give insight to why people think the way they do and help us understand other cultures in a non judgmental way. ❤️

[@rnt45t1]

I finally reached accumulation this year. It really does change the way you think about everything.

[@joga3370]

What has changed. I’m in this phase and want to know what has changed for you?

[@lucysmith4242]

Came from upper middle class background, never had debt, graduated in STEM to a good paying job in a low cost of living area, I'm accumulating and I have no idea wtf I'm doing with my money. Not in the sense of I don't know that I should invest, but in the sense that I currently have everything I want. So debating quitting my job to try something else I enjoy more or attempting to start a business

[@TheFirstRealChewy]

The way things are going we'll be well into our retirement years before we reach level 4, and even then its just barely and doesn't account for long term care. It's discouraging. I'm hoping things go better than expected, but the challenges are real. I wish I knew about investing earlier. It would be so amazing to reach level 4 before retirement age. Unfortunately my parent didn't know much about investing, and while I've heard of it, it's only recently that I knew the importance of it after doing my own research. I'm currently watching my parents work in their retirement years because they don't have a choice and it's scary. The stress alone can kill you. The reality that this too would be our fate if we don't do something now got us to take action now. Better late than never.

[@jeremybly]

There's a fine line between each level

[@amandadube3981]

Thank you for making this video 😊

[@NextLevelLife]

You bet :)

[@MinhNguyen-ut6ue]

In an ideal society, you could get rid of level 1 by establishing the universal basic income for everybody.

[@spencervance8484]

Governments are usually about 10 years behind give or take. So if the US is ever to have ubi, it will be somewhere within the next 3-5 years...yay i guess?

[@boondoggle4820]

I have no idea why they lump sex in with those other physiological needs since sex is not allowed to be a need per se in this society. Other than that I agree and I think that the US is good at fulfilling the first two, physiological and safety, and terrible at the other three, but of course the other three don’t matter without the first two.

[@ZentaBon]

Sad how in the richest country on earth we have to struggle to earn breathing room, while corporations own 100s of homes they never use and we waste 1/3 of the food we produce.

[@hayderley]

Never ever use payday loans.

[@TheFirstRealChewy]

It all depends. Some people would say never use credit cards, or never borrow money so you have any debt.

[@Tempestelterna]

I’ve been at Stage 3 for a long time. Between now and April I’m moving towards utilisation.

[@spencervance8484]

Did you make it?

[@stephenkentperez7705]

funny enough, if you just take "needing money" out of the equation, every person is going to live in utilization level already.

[@TheFirstRealChewy]

I feel like I've needed money my entire life. I directly needed it as an adult, and indirectly needed it as a child (parents paid for my lifestyle).

[@fontane007]

I’ve just reached level 3 but at 50 years old it’s going to be tough

[@victormutta1115]

Hehe, great hook and intro for this concept.

[@mrbarnzz]

Amazing video! Very realistic

[@NextLevelLife]

Glad you think so!

[@zer0bit]

I'm between sustainability and accumulation, more inclined to accumulate. Been saving for my emergency fund the last few months and got 3 months of expenses. I hope I get at least 10-20% of passive income at the end of 2023.

[@TheFirstRealChewy]

We finally reached our target for emergency funds a few months ago. I understood what it meant to financially reach our target, but I wasn't prepared for what it meant psychologically. Just knowing that if things don't go right at work we don't have to find a replacement job within 30 days reduced a lot of stress. We've been down that road more than once and it reduces some of the stress going into 2023 while seeing all these hiring freezes and layoffs.

[@NextLevelLife]

A very underrated benefit of having some cash as a buffer indeed :)

[@BennieVredestein]

10-20% lol

[@MotoMatsalleh]

Great vid

[@NextLevelLife]

Thanks!

[@jayc326]

I like this!

[@pamelariley6694]

This is a keeper. ☝️

[@katlehokomeke]

Currently at level 2, working hard to be at level 3 by this time next year.

[@NextLevelLife]

You can do it!

[@shivamraghuwanshi7429]

In book of business studies of class 12th

[@GrumpSkull]

'Financial' has absolutely nothing to do with Maslow's hierarchy of needs. Only an $American$ would see it that way.

[@aarondunham1796]

Good comparison but you failed to map the ability to live on what you make to impact of moving up the scale. A payday loan to eat seems reasonable but are you buying rice and beans or steakhouse with friends? You have to say no to desire early or always stay at the bottom of that scale.

[@TheFirstRealChewy]

Lifestyle creep is the highest inflation rate. It's like the forbidden fruit. Once you taste that better lifestyle you can't undo it. It would be best if your investments paid for the lifestyle, but waiting until that happens is a huge challenge for most. I can't say that I've reduced my desires, but I can say that I've increased my patience. Starting in 2023, we are focusing on investing while maintaining our current lifestyle. We'll only adjust our lifestyle for inflation if needed. If things go well our investments will be enough to pay for our lifestyle when we reach retirement age. If they don't, we'll just have to make it work and keep working if possible.

[@ariabey7614]

I'm at level 0.8, and slipping....