Based on Maslow’s Hierarchy of Needs, Tresa designed the MFD Financial Hierarchy to help women understand the steps on the journey to financial abundance. Human beings are hardwired for self-discovery and in order to have the financial life we desire, we must understand who we are, why we are here, and how to use the inner qualities that were installed inside us to help us in the pursuit of our dreams.
Survival - in this phase we are beginning to earn money and learning how to spend it wisely to cover our basic needs. We may feel confused and make mistakes, such as incurring credit card debt or taking too much risk with an investment to “get rich quick”. This is the phase where everyone learns the basics of earning and spending.
Foundation - in this phase we make progress in how much we earn by obtaining a raise or changing jobs in order to be paid more monthly income. We may be a student, learning a trade or obtaining a higher education degree. As we get more experience managing a budget, we pay down any credit card debt, perhaps buy our first new car, and begin to save for future goals.
Choices - in this phase we change our view from being on a budget to designing a spending plan. Our income is increasing and with financial education, we begin to balance our choices between spending for short-term enjoyment and saving for long term goals. This phase can last a long time if we struggle with the balance between spending and saving. Hiring a trusted advisor provides an opportunity to learn more about managing money and design a plan that seeks to build wealth.
Wealth - in this phase it is important to develop a prosperity mindset, believing that wealth is positive and you have everything you need to attract and maintain any amount of wealth into your life. Financial literacy is more of a focus as various investment options are considered. Your income easily supports your lifestyle and there is an abundance of flow to invest and expand your lifestyle. Many women design a plan to share their wealth with causes that interest them.
Abundance/Freedom - in this phase, wealth is stable and the desire to make a difference in the world by sharing wealth grows. Many people in this phase end up giving most of their wealth away, either to family, friends or favorite causes, having enjoyed becoming the person that the journey from survival to abundance provides. Passing on the wisdom of their experience also becomes important.