Maslow’s Hierarchy of Financial Needs

I was a psychology major at college, and recall the professor telling us that we would never reach our potential, and few we knew, would. That piqued my interest and remained so to this day. Marketers use the hierarchy of needs to understand a customer’s psyche to evaluate their motivations when they shop for things they need or want.

Though not as well known as Freud, Abraham Maslow, an American psychologist, had a more humanistic and optimistic view of personality, focusing on psychological health and growth. He claimed individuals prioritize their needs according to a motivational theory in psychology. They will satisfy the most innate survival needs, rising to the highest level of self-actualization. Self-actualized individuals are those with the most significant motivation who can reach their potential and achieve contentment and fulfillment.

As we go through each level, let’s consider our financial needs, from the lowest stage of basic physiological needs to self-actualization at the top. We’ll discuss how we can achieve the most desirable need of self-actualization, and wealth distribution takes place.

Like most living things, humans are motivated first and foremost by our survival. It would be hard to excel at anything else without satisfying our living needs. At the bottom of the pyramid is the lowest level that applies to our physiological needs to survive life.

1. Physiological Needs

2. Safety & Security Needs

The second level represents safety and security needs that are essential. Attaining a feeling of safety and security is paramount to all beings. Success means being comfortable at the home and the workplace and taking care of your health and wellness.

We care not just about belonging but respecting others and building our reputations. Our demographics reflect where we live, our occupation, income, and net worth. Our need for affiliation with others we respect is essential and fulfills our emotional requirements.

3. Social Needs

After fulfilling the previous three needs of physical survival, feeling safe, secure, being loved, and belonging, we arrive at esteem needs. At this advanced stage, we may have abilities, competence, and accomplishments that provide recognition, prestige, and a reputation.

4. Esteem Needs

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