Getting Started with Hierarchy Budget

The Basic Process

Hierarchy Budget helps you see what your spending actually serves. Not accounting categories. Human needs.

1. Create Your First Budget

Navigate to Budget Planner:

Enter your monthly income (after taxes)
Set target percentages for each level - what you think reflects your current situation
Add your expense categories
Enter planned amounts for each category
Assign each expense to the need it serves

Don’t worry about “correct” percentages. This is about seeing reality, not conforming to an ideal.

2. Understand the Five Levels

As you build your budget, assign expenses based on what need they actually serve.

Key insight: Many expenses serve multiple needs. Split them honestly.

Physiological (Basic Survival)

Food, water, shelter, sleep, health. The body’s non-negotiables.

Examples: Groceries, rent/mortgage, utilities, basic internet, prescriptions

Safety (Security & Stability)

Protection from danger. The desire for a predictable, orderly world.

Examples: Insurance, emergency fund, debt payments, retirement savings, car maintenance

Split example: Basic car insurance -> safety. Premium coverage beyond legal requirements -> safety. Choosing a safer neighborhood -> safety.

Love & Belonging (Connection)

Social bonds, relationships, community. Feeling part of something larger.

Examples: Phone plan, social outings, gifts, family activities, pets, community groups

Split example: Premium groceries might be part health (physiological), part image and values signaling (love/belonging).

Esteem (Respect & Achievement)

Confidence, self-respect, achievement, recognition from others.

Examples: Professional clothes, gym, hobbies, courses, personal care, quality items that reflect identity

Split example: $600/month car payment - maybe $250 is reliable transportation (physiological/safety), $200 is professional image needed for work (esteem), $150 is about how it makes you feel (esteem). Split according to what you actually believe is necessary.

Self-Actualization (Becoming Your Full Potential)

Growth, creativity, expressing your unique capabilities.

Examples: Creative pursuits, meaningful travel, advanced education, mentorship, charitable giving, legacy projects

3. Set Your Pyramid Percentages

Use Percentage Controls to allocate income across levels. The pyramid updates in real-time.

There are no “correct” percentages. Your allocation should reflect:

Your actual income and circumstances
What needs are genuinely calling for resources right now
The gap between what you think you value and what your spending reveals

You’re Not at One Level - You’re Across All Five

This is critical: you’re never “at” the physiological level or “at” the esteem level. You’re always operating across all five simultaneously.

Maslow provided these rough estimates for an average person:

85% satisfied in physiological needs
70% satisfied in safety needs
50% satisfied in love needs
40% satisfied in self-esteem needs
10% satisfied in self-actualization needs

What this looks like:

Groceries serve physiological needs (85% satisfied)
Insurance serves safety needs (70% satisfied)
Social activities serve belonging needs (50% satisfied)
Gym membership serves esteem needs (40% satisfied)
Creative projects serve self-actualization (10% satisfied)

The pyramid doesn’t show where you “are” - it shows how your resources are distributed across these simultaneously active needs.

The goal isn’t to match an ideal. The goal is to see what’s true right now.

4. Track Reality vs. Plan

Enter actual spending amounts as the month progresses. The pyramid reveals:

How much of each level’s budget you’re actually using
Which needs are calling louder than your intentions
The gap between plan and reality

This gap is information. Not failure. A window into what’s really motivating you.

5. Observe

At month’s end, look at what the numbers show:

Where did my resources actually go?
Which needs got more attention than expected?
Which needs did I neglect, even though I said they mattered?
What does this reveal about what’s actually driving my behavior?

Don’t judge. Just observe.

Understanding the Pyramid Visualization

The pyramid shows fill percentage for each level - how much of that level’s target budget you’ve actually allocated.

What the Fill Means

Empty/Low Fill: You set a target percentage for this need, but didn’t allocate resources toward it. The numbers show the gap.
Partial Fill: You’re meeting this need partially. The percentage shows how much.
Full/Overflow: You’re meeting or exceeding your target for this level. The pyramid shows where overflow is happening.

Reading Your Pyramid

Bottom-heavy: Most resources going to physiological and safety needs.

Your income situation may genuinely call for this
You may be recovering from instability
Or: anxiety about safety is consuming resources

Top-heavy: Significant allocation to esteem and self-actualization while lower needs are underfunded.

Basics may truly be met
Or: avoiding dealing with foundational instability

Balanced: Resources distributed across levels.

May indicate genuine stability
Or: spreading too thin, nothing getting full attention

The question isn’t whether any pattern is “good.” The question is: what does this reveal about what needs are calling for resources?

Annual Planning

For larger, non-monthly expenses, use Annual Planning:

Track periodic income (bonuses, tax refunds)
Plan periodic expenses (insurance premiums, vacations, gifts)
See how monthly budget combines with periodic items
Understand your full year’s financial picture

Tips for Clarity

Be Honest

Enter what you’re actually spending, not what you wish you were spending. This is about seeing clearly.

Split Expenses That Serve Multiple Needs

“Coffee” could be physiological (caffeine), love (connecting with friends), or esteem (the cafe signals something about you). Where does it belong? Wherever it actually serves a need. That placement reveals motivation.

The car payment. The restaurant meal. The gym membership. Many expenses serve multiple needs. Split them honestly.

Your Hierarchy Will Shift

The needs calling for your resources now might be completely different next year. That’s not inconsistency. That’s life. Stay aware of what’s shifting.

This Is a Mirror

This tool doesn’t tell you what you “should” spend. It shows you what you’re actually spending and reveals what needs are calling for those resources.

Common Questions

Q: What if an expense fits multiple categories?

A: Split it. That’s the power of this framework. A $600/month car payment isn’t just transportation - split it: $200 for reliable transportation (physiological/safety), $400 for status and image (esteem). A gym membership could be $30 for health, $50 for community. Premium groceries might split between physiological (nutrition) and love/belonging (values signaling). This honesty about where money goes - about which needs it serves - is where the insight lives.

Q: I can’t save anything. Is this tool for me?

A: Yes. This tool can reveal what needs are consuming all your resources right now. That understanding might be more valuable than a savings rate.

Q: Should my pyramid match some ideal percentages?

A: No ideal exists. Your allocation should match your actual situation, actual income, and actual needs calling for resources. The goal is clarity, not conformity.

Q: Why does this feel so revealing?

A: Because it shows what you’re really trying to fulfill, not what you think you should be doing. That clarity can feel vulnerable and powerful simultaneously.

Q: How do I know what’s a “need” and what’s a “want”?

A: Maslow provides the framework. Physiological needs are non-negotiable. Safety needs keep you from chronic anxiety. Love needs are about real connection. Esteem needs are about genuine confidence. Self-actualization is about growth and becoming what you’re capable of.

But there’s personal discretion within each level. Split expenses honestly based on what you actually believe is necessary. This gives your budget a moral backbone - you understand why you’re allocating what you are, and you can see whether those allocations align with what you value.

Ready to begin? Head to Budget Planner and create your first monthly budget.