Paying off debt, increasing savings, reducing taxes, investing for the future — with so many different money management goals to work on, it can be hard knowing where to focus your energy. MoneySense’s Priority Pyramid suggests the financial milestones you should address in order of priority.
Like Maslow’s Hierarchy of Needs and our own Lifehacker Hierarchy of Goals, this pyramid illustrates what you should tackle first (at the bottom of the pyramid) before moving up to the next level.
Making sure you’re earning more than you’re spending is priority number one, naturally. If you don’t have a positive cash flow, you can’t use your money to meet your financial goals. At the top of the pyramid are focusing on investment performance and optimising your returns.
It’s a basic but useful illustration for creating a plan of attack to get your finances in order.
The Priority Pyramid [MoneySense]
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