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Wednesday, April 23, 2014

Use this Financial Independence Pyramid to Guide Your Money Goals

Use this Financial Independence Pyramid to Guide Your Money Goals


It takes a lot of willpower to achieve financial independence. To guide your journey, it helps to know the different stages of reaching this goal. To help visualize these stages, personal finance site Mister Squirrel created a hierarchy of financial independence and early retirement.


Mister Squirrel outlines six phases:



  • Surviving: We develop healthy attitudes about money that will help us reach our goals.

  • De-Debting: Pretty self-explanatory. We tackle our debt.

  • Learning: We build an emergency fund and work on our financial literacy.

  • Investing: We put our financial literacy into action.

  • Optimizing: We tweak, nurture and grow our investments and finances.

  • Freeing: We know what to expect from our finances. Our expenses are predictable and covered, and we have a healthy attitude about money.


The pyramid, based on Maslow's Hierarchy of Needs, serves as a helpful guide for creating and achieving financial goals. For more info on each of these stages, check out the post.


Hierarchy of FIRE (after Maslow) | Mister Squirrel


Photo courtesy of Mister Squirrel.




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