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My Personal Finance Pyramid Update

My Personal Finance Pyramid

A few years ago I decided to create a road map while I slowly climb my way up a financial pyramid, trying to acquire more wealth!  I see such a climb as a struggle towards building wealth!  A pyramid (based off of Maslow’s Pyramid of Needs) seemed to be a great representation of such a wealth pursuing journey.  In many ways, it helps me visualize the various levels and created milestones for me to watch for, since I love feedback!  So without further ado, here is my update on my progress climbing my “Personal Finance Pyramid“!

Financial Pyramid


Asset Accumulation Phase

Yes!  After spending too much time stuck at the “Action Plans For Wealth Development” phase, I can finally state that I’ve crossed the threshold and that I’m firmly in the “Asset Accumulation” level on my Financial Pyramid!

Why was I stuck at the “Action Plans For Wealth Development” for so long?

Originally, I expected to only spend a short time in the “Action Plans For Wealth Development” phase, but the “The Great Recession” took it’s toll on my planning and caused me to spin for a while, trying to decided what to do.  Fortunately, my money was still swelling from the fact that we paid off the mortgage on our house early, and so I had a small pool of cash available for investing and purchasing other assets.

Upper Middle Class still at a Distance!

I had hoped to be closer to this level by now, but the economy and work hasn’t worked out according to my plans.  I could also make the excuse that my wife is a SAHM and even point out this article “Income Loss From My Wife Being a Stay at Home Mom” that makes a great case that we should have been millionaires by now, but really if I wanted it bad enough, I could have worked harder all along.


How Things Are Different on my climb up my “Personal Finance Pyramid”

Having a personal finance pyramid for the goals in combination with personal finance spreadsheets (home grown), really help me keep my eye on the ball.  Another big thing that has changed is that I want to start having bigger and better experiences by traveling more often, especially overseas!  And finally, a huge change is that I totally believe that it’s possible for me to get to some of those higher levels on my personal finance pyramid. You see, most people don’t even try, so just believing and continuing to worker harder and smarter puts me at a huge advantage!

I’m hoping for the best!  What are your thoughts?



18 Responses to My Personal Finance Pyramid Update

  1. Very cool graphic and concept. We just paid off our debt (minus house), and we are in the phase of developing an asset accumulation plan. I’m glad to be thinking about wealth building rather than debt destruction.

    • Thanks John,

      Congrats on paying off you debt!!! Because of the “Great Recession”, that asset accumulation planning phase was more difficult than I thought! I think I’m back on course though now…

  2. I think you are doing great! If you start traveling more often and spend more money, then that fit your definition of upper middle class right? The line is a bit blurred at this point. Great job so far!

    • Thanks Joe!

      Yeah, it is murky, and my definition of “Upper Middle Class” is definitely not the same as the definition in a place like New York (where I would probably be considered somewhat poor actually…)

    • I’ve modernized mine… A few years ago, it use to be a ugly html table that looked like an Aztec Pyramid, I like this new version better 🙂

    • I thought I’d be further along that I am currently, but I’m not… Oh well, I’ll keep plugging along, what else is there for me to do?

  3. It’s always good to see a wealth plan as a series of steps or stages like you’ve shown, which goes a long way towards shattering any rich vs poor divide. We’re all on the continuum at some point or another, poor, rich or somewhere in between, and we can all go down as well as up! What matters is that as individuals we strive to move upwards, as it’s possible for everyone to achieve.

  4. I think it is a cool way to look at wealth. The best part about it is that you didn’t add actual numbers since everyone has a different definition

  5. I love the hierarchy of needs. It’s one of those few things I picked up in high school psych class that has stayed with me. It is so true.

    I probably would have structured my pyramid a little differently, but I like the concept. There is a distinct debt/stuff accumulation phase that is critical and I think it feeds the rest of the pyramid. You have to outlay cash on the forefront to get educated or learn a trade (which then you pay off at a later step), but it should allow you to get further up the pyramid if done right. It’s almost like a launch pad to get to the next phase. Conversely, it can also be a disastrous phase too and send you back a level. If you go $100K in debt on some education that has limited job prospects, then, it’s a phase you may never recover from.