The Hierarchy Of Values
This is a topic that I presented first on my personal blog. I wasn’t necessarily planning to broach the subject here, but seeing as how it is so fitting to the discussion of choice and financial empowerment, it is definitely an appropriate and timely topic for this blog, too.
Your Hierarchy Of Values And Your Financial Success
This is a concept taught in different forms and under different names by a variety of financial educators. The basic idea is that we all have our own personal value-hierarchy that dictates where and how we spend our money, or if we spend it. And according to these values we make choices (often subconscious choices) about where the money goes first.
An example of this might be of a parent who values their children’s comfort over anything else. That parent will spend first on the child, to see to their needs, and even to see to “needs” that aren’t really necessary. From there the remaining money is allocated according to the schedule of values—the most important expenses or purchases are made first, and on down the line until either all are covered or the money runs out.
In terms of wealth creation, your hierarchy controls how much money you dedicate to yourself, your savings, and your wealth creation. As the current rate of savings proves, savings is not high in the values of most people in the developed world, from Australia to the U.S.
Learning From Intrinsic Values
The lesson to take away from this is that if you work to realign your value system, you will begin to realign money management. If you value your own financial success over the rest, you will attend to that first. Wealth building will move up the list from last place (and imagine what the possibilities are when it does!).
Like others you are probably not even aware of your current value system. You may even think it is opposite of what it is. Take some time to pay attention to your real value hierarchy; apply the power of choice to the power of change. Learn to truly value your own financial success, and wealth will follow.
Sean Rasmussen
Wealth Creation Blog
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