What Do Human Beings Need?

Human beings have always strived to lead fulfilling, meaningful lives. But what does that fulfillment look like? Psychologist Abraham Maslow broke this down for us into five basic needs that guide our lives, which he organized into a hierarchy known as Maslow’s Pyramid. At the base are our most essential needs, while at the top lies our highest potential, and each step upward represents a layer of fulfillment.

Here's a quick recap of Maslow’s hierarchy, from bottom to top:

1. Physiological Needs – These are the essentials: food, water, shelter, and rest. Without these, survival itself becomes challenging.

2. Safety Needs – This level covers the need for security, stability, and freedom from physical or emotional harm.

3. Social and Belonging Needs – This includes relationships, friendships, and acceptance. We want to belong and be connected.

4. Esteem Needs – At this level, we seek respect, status, and a sense of accomplishment or recognition.

5. Self-Actualization Needs – This is the pinnacle: realizing our full potential, embracing creativity, and living authentically.

But Maslow’s pyramid isn’t just about human psychology. When we think about financial stability and personal growth, a similar structure can help us understand how to build a strong financial foundation. Let’s look at a “financial pyramid” based on Maslow’s model and explore how we can gradually climb it.

Building a Financial Pyramid: Steps Toward Financial Fulfillment

Just as Maslow identified stages of personal needs, we can apply a similar structure to our financial journey. In this financial pyramid, each level represents a foundation you need before moving on to the next. Here’s how to build this pyramid and how it complements our human needs.

1. Financial Basics: Covering Physiological Needs

? The base of the financial pyramid is about meeting the essentials, much like how food and shelter come first in Maslow’s model. Financially, this means ensuring that you have a steady income that can reliably cover your basic expenses like rent, food, utilities, and any immediate healthcare costs. It’s hard to think of higher goals without having this foundation.

? This stage also includes setting aside a small emergency fund—a safety net for unexpected challenges. Just as humans need physical security, this financial security provides stability and peace of mind.

2. Insurance and Savings: Meeting Safety Needs

? Once you have covered the basics, the next layer involves building security. This includes health insurance, life insurance, and other protective measures to shield yourself and your loved ones from financial surprises. A good savings account is essential here, covering at least three to six months’ worth of expenses.

? This aligns with Maslow’s safety needs, giving you a sense of security. It ensures that in the event of unforeseen issues—like medical emergencies, job loss, or home repairs—you’re not thrown into financial turmoil. Think of this as your financial shelter against life’s storms.

3. Investing and Building Wealth: Satisfying Social and Belonging Needs

? Once you have a strong savings and insurance foundation, the next step is about growth—investing in assets that will help you build wealth. Whether through stocks, bonds, real estate, or mutual funds, investing allows your money to work for you and grows over time.

? At this level, your financial decisions can start to align with your social needs. As you achieve a stronger financial position, you might feel more confident in participating in group activities, supporting family members, or even contributing to your community. This financial stability also gives you the confidence to network, join professional groups, and feel more secure in your social circles.

4. Financial Independence: Fulfilling Esteem Needs

? Moving further up, the focus shifts from wealth accumulation to independence and recognition. Financial independence means having enough assets or income streams to support yourself without having to work if you choose not to. You’re in control of your finances, and you gain a sense of respect and accomplishment, whether from others or simply within yourself.

? This stage mirrors Maslow’s esteem needs, as it offers a sense of achievement and status. At this point, you may have built a career, a successful business, or investments that give you autonomy and self-respect.

5. Legacy and Fulfillment: Achieving Self-Actualization

? The top of the financial pyramid aligns with Maslow’s concept of self-actualization—reaching your highest potential. Financially, this could mean giving back to society, pursuing creative projects, or making a lasting impact. This level is where you may fund causes you believe in, mentor others, start charitable organizations, or focus on family legacy and wealth succession.

? Here, financial success allows you the freedom to focus on your passions and purpose. It’s no longer about money itself but about what you can do with it to create a meaningful and positive impact on the world.

How to Climb the Financial Pyramid

Climbing the financial pyramid is a gradual process, and you don’t have to rush from one level to the next. Instead, focus on building a solid foundation at each stage before moving on. Here are some practical steps to help:

- Prioritize budgeting and saving early on so you can comfortably cover essentials and emergencies.

- Get adequate insurance coverage and plan for health and life contingencies. These safeguards prevent unexpected events from destabilizing your finances.

- Educate yourself about investments as your savings grow. Knowledge is power here; start small if necessary, and gradually build a diversified portfolio.

- Set milestones for financial independence—such as paying off debt, saving for retirement, or creating passive income streams. Financial goals become achievable when broken down into manageable steps.

- Think about legacy and impact once you reach a position of financial stability. This can be as simple as creating a family trust, contributing to a cause, or investing in future generations.

Finding Balance Between Financial and Personal Needs

As you work your way up the financial pyramid, remember that money isn’t an end in itself; it’s a tool to help you lead a fulfilled life. Balancing Maslow’s needs with financial planning means using your resources not only to secure a better future but to enhance your present as well. A strong financial foundation supports each level of human need, allowing you to focus on personal growth, relationships, and self-discovery without the distraction of financial worry.

So, start where you are, take one step at a time, and build your financial pyramid in harmony with your personal journey. The path may be different for each of us, but with a solid foundation, a sense of security, and a plan for growth, everyone can reach the peak of their financial and personal potential.