We all want financial freedom—but many don’t realize that it begins with meeting our most basic needs. According to Registered Financial Planner John Hero Salvador, understanding Maslow’s Hierarchy of Needs can offer a powerful framework for managing money with purpose.
“Just like Maslow’s pyramid, personal finance should be built from the ground up,” Salvador tells Financial Adviser PH. “You need to secure your foundation before you reach for your highest goals.”
Here’s how to align your money decisions with Maslow’s model—from survival to self-actualization.
Step 1: Cover your basic needs (Survival)
At the base of Maslow’s pyramid are physiological and safety needs—food, shelter, water, clothing, and protection. In financial terms, this means budgeting for essentials: rent or mortgage, utilities, groceries, and transportation.
It also includes building your emergency fund and getting proper insurance coverage. “These are your financial seatbelts,” says Salvador. “They keep you protected from unexpected shocks.”
Step 2: Strengthen your relationships (Belongingness and Esteem)
Once your basics are covered, the next focus is psychological needs—belonging and self-worth. This could mean spending on family time, community involvement, or small gestures of love and connection.
But Salvador warns: don’t confuse self-esteem with impressing others. “Overspending to look successful—like buying a car you can’t afford just to keep up appearances—will only set you back,” he says. Instead, align your spending with your values and invest in meaningful connections, not social status.
Step 3: Pursue what truly matters (Self-Actualization)
At the top of the pyramid is self-fulfillment—achieving your full potential. Financially, this means setting long-term goals that reflect what matters most to you. It could be starting a business, pursuing a passion project, or securing your children’s future.
But you can’t skip the earlier steps. “Chasing big goals without a solid foundation leads to frustration,” says Salvador. “First stabilize, then grow.”
The bottom line
Your financial journey isn’t just about earning more. It’s about moving with intention—from surviving to thriving. By understanding your needs and aligning your money with your life’s purpose, you can build not just wealth—but a life of meaning.
