Financial Foundations: Where It All Starts

The Foundations tier is exactly what it sounds like; it’s the bedrock upon which your entire financial house is built. In this tier, your primary goal is to become financially self-sufficient. Financial sufficiency simply means balancing your expenses with your income. Whether you earn a massive salary or are working an entry-level job, everyone must learn to manage their cashflow to achieve sound financial health. Here, you will tally your life’s basic expenses—shelter, food, transportation, and personal essentials—to determine the minimum income you need to survive. You will also familiarize yourself with core financial concepts like net worth, asset allocation, and compound interest.

What Comes Next

Working through the action plans in this phase will help you move beyond living paycheck to paycheck, and open up exciting new financial possibilities. You’ll solve the problem of financial ambiguity (i.e. not knowing where you stand financially) by learning how to efficiently track all aspects of your financial health without getting overwhelmed. This includes understanding your liquid cash, spending habits, debt, and your credit score. But just as importantly, the suggested plans for the Foundations Tier ensure you establish the habits and routines that build momentum for things like building an emergency cushion and investing for the future. Laying a strong foundation with these good financial habits ensures that when financial storms hit, your house doesn’t crumble.

Your Next Steps: To master this tier and ensure your financial fundamentals are dialed in, we recommend diving into the following MoneySwell Action plans.

Suggested Action Plans

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• Mastering Your Money Mindset & Foundations
• Taking Control of Your Cashflow
• Securing Your Digital Identity & Credit