May 14, 2009
Hierarchy of Needs and Spending
I believe, before we attain financial freedom, we must manage our spending and save. And from our savings, we must learn to invest in low risk ventures and slowly build different streams of passive income.
One of the reasons why we can’t seem to save money is our mixed up spending priorities. I was blog hopping when I bumped into this post and find it enlightening.
Maslow’s Hierarchy of Needs Hierarchy of Financial Needs
The author used “Maslow’s Hierarchy of Needs” to determine our level of financial needs. I find his mini series educating and value adding. By understanding these, we will be able to prioritize our spending. i.e. postponing our dream vacation in Europe if we don’t have the funds necessary for the downpayment in our own house and lot, or buy the new gadget in town when kids tuition fee is not yet settled.
However, we should integrate our Christian values on this model and watch out for “in the box” thinking. It does not mean you can not share your resources (gift money) to others unless you’ve attained the first three levels first. The law of seed time and harvest are still in place and our generosity (sowing) can lead to more business opportunity or career growth (reaping).
In our journey to financial freedom, an ingredient of financial literacy, discipline and Christian values is necessary.
