Maslow’s hierarchy of needs says that we as human beings are motivated to achieve certain needs and that some needs take precedence over others. The five needs are:
As we go up the needs ranking, money will provide you with certainty within these categories. The first two needs are basic needs and will grow the more we are deprived of them, for example our need for food, shelter and the need for security. Having robust finances, base level of income and an emergency fund, is one way of ensuring our basic needs are met. Once these needs are met, we can focus on Psychological and Self Fulfilment needs. This tends to be where we contribute to our individual growth and the growth of those around us to our full potential.
These are our biological requirements for survival. Food, clothing, shelter are often needs we are fortunate enough to take for granted living in the UK. There is usually a backstop for these physiological needs using income from employment or state benefits. Once we have taken care of our basic need we require safety and security needs. There is no one size fits all with safety and security requirements, as they will depend on personal preference and circumstances; however, there is no doubt that a constructive use of finances can go towards providing the safety you desire.
However we choose to show love, belonging to family, gathering with friendship groups and peers, it is the next step on the ladder of a human need to satisfy. One of the main esteem needs is self-esteem, which can be gained from having financial independence and having independence has a high correlation with how you feel about your financial circumstances. A robust financial plan will allow you to feel confident that your esteem needs can either be met now or have the steps in place to move towards your esteem needs in the future. Once this is satisfied you are in the position to focus on the next human need.
Self Fulfilment Needs
Self-Actualisation is deemed to be the highest personal need within Maslow’s hierarchy and therefore can often be what we are striving towards, provided we maintain the preceding needs. When needs and circumstances change for any individual, Wingate use financial planning to help our clients reach their ultimate goals.
Whether life is disrupted through loss of a job, death or serious illness of a loved one, or any number of life experiences, it is important to be able to re-examine your financial plan to accommodate your changing requirements. Personal growth, peak experiences and reaching maximum potential can be met once our other needs are satisfied. Whether this is expressed professionally, as a parent, or creatively, having control of your finances is a great way to create the right environment to reach self-actualisation.
Money in isolation is not going to bring joy or happiness; however, it is a great facilitator that can allow you to reach self-actualisation and ultimately satisfaction. If you would like a financial plan that helps you achieve your goals and dreams, please get in touch with a dedicated financial