Our framework is similar to the Food Pyramid that most US educated kids learned in our primary school years, but applied to personal finance. The concept is simple – build a solid base that will make you financially unbreakable and then work your way up the pyramid to ultimately achieve financial freedom. Climbing all of the way isn’t necessary and most people may not want to get to the Master Level, but everyone will need a strong base layer.
Base Layer – Building a Strong Foundation Ask anyone who has achieved financial freedom and almost all will say creating a strong foundation is the most important step. While it’s not as sexy as investing and growing your money, it’s equally if not more important – even millionaires go broke if
Mid-Layer 1: Building for Your Future Now that you’ve built a strong foundation the next layer in the personal finance pyramid is building for your future and specifically setting up and automating your tax-advantaged retirement accounts. This layer assumes you have paid off your high interest consumer debt and built
Mid-Layer 2: Investing toward Financial Freedom Mid-Layer 2 is all about investing toward financial freedom by incremental investing in additional to your retirement plan – NOT replacing it. This is a passion area of mine and an area that I’ll spend a lot of time and many blog posts, but
Master – Accelerating Your Financial Future The top layer of the personal finance pyramid is focused on accelerating your path to financial freedom through investments in higher risk / higher reward assets. It’s not an area that everyone will get to, nor should you want to, because it involves accepting