Wealth Pyramid

There are many factors that lead to a happily lived life such as being healthy and fit, surrounding yourself with people who you feel bonded to, being happy and intrinsically fulfilled with who you are as a human being and a part of your community, and last but not least being financially stable in order to afford a well-rounded life. Let’s discuss the various stages of Wealth Pyramid.

What is Wealth Pyramid?

Like it or not, wealth plays a crucial role in our lives. Being wealthy doesn’t necessarily make you the happiest version of you, but not being wealthy can bring unbearable pain upon your life. Now everyone has a different opinion on the level of wealth you need to be called wealthy, so let’s break down each level of wealth. Let’s see where you are right now and are you on right track to reach the top if not.

There are five levels of wealth as shown in the pyramid below. Let’s break down them one by one and determine which wealth stage category represents your current financial situation.

Pyramid of Wealth

Wealth Pyramid

Deep in Debt

This is the stage where you are in financial trouble. There is a huge debt in your name and you are not able to repay it even if you are earning some amount of money. The burden of debt and interest is so huge that cannot be lower down by your routine income. For example, credit card outstanding which is increasing month on month as you are paying only minimum dues. This is a very scary situation when you are not able to catch up with your debt. Interest burdened you and in some cases, there is interest charged on interest which will add-on to your debt burden.

Solution: Cut down on your expenses, even if you think there is no scope. Save money and pay off your debt as early as possible.

Meeting Ends

If you fall into this category, means you are earning enough to meet your basic requirements. The person at this stage is on a tight budget. Even a smallest extra expense would pinch him a lot. People who are ignoring expenses at the last week of the months due to inadequate money falls under this category. One cannot plan a vacation, save for future, go out for dinner frequently all these are the symptoms of “meeting ends”.

Solution: Make a monthly budget, track & stick to it, find an alternate source of income

Financial Freedom

This is the stage where you are able to save some money at the end of the month. Your goal should not be only saving but investing for earning returns on your saved money. You should save at least 10%-20% of your income and deploy that money as an investment. Don’t worry if you are not able to save 20% of your income, start with whatever you have in your hand. I don’t have any left at the end of term month because I am following zero-sum budget technique. You must have heard,

You should sleep but not your money.

Takeaway: Save and invest money, give your money a “job”.


When a person can afford all luxuries and spend extravagantly he falls under this category. A big house, luxury car, luxury vacations are the signs of prosperity. If you work hard on level three then you can reach this level. You may spend money on the things you actually don’t want. You don’t think for a moment while purchasing any “stuff” you know you are not going to use it. After attaining this level you will not fall down easily until you blow all your money in gambling.

Takeaway: Work hard, party harder, enjoy your life.


This is where everyone wants to reach but only few can reach. Not even 1% of world’s population falls under this category. People who reach this level can significantly impact society positively or negatively. They become influential people who are always ready to help others. Acquiring wealth is no more their goal, rather they want to contribute to the community around them. People like Bill Gates, Warren Buffett are the greatest examples who have to attain this level.

Take away: Self-satisfaction and fulfillment are greater than wealth.


What is your wealth stage? And where you want to see yourself in this pyramid?

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