Money Essence

My Budget Hierarchy & Financial Philosophy

Money Essence -

Hello Money Essence readers!

It's ME → yes, I've been waiting to write this! 🙃 Taylor Swift is playing in the background because somehow her songs always match the moment perfectly 😉

This post is going to be special. It’ll probably become a reference point for many of my future posts, and I already know I’ll update it from time to time. How often? That depends on the changes happening in my life.

Here I want to set out my core principles – the big rules that guide me whenever I build my monthly or yearly budget. In other words: my personal hierarchy of values.

Why bother with a hierarchy? Because it keeps me sane. It allows me to organize my spending in the direction I want my life to go, instead of just reacting to every impulse. And most importantly – this is MY hierarchy. It reflects my life right now, in 2025. Yours will (and should!) look different.

Think of this post as me chatting with a good friend, sharing what really matters to me.

⚠️ One note: hierarchies aren’t forever. They shift with life phases, new responsibilities, or even fresh opportunities. But until something changes, my hierarchy stands as the supreme framework. That way, even when those “weak moments” hit (because trust me, they do – hello, new Hourglass holiday palette 👀), I have a system that keeps me grounded.

I split this into two parts: values and rules. Rules grow directly out of values. And honestly? I recommend everyone tries this exercise. It’s a game changer.

MY SPENDING HIERARCHY – The Foundation of My Budget 🏗️

I’m not a hardcore FIRE fan (Financial Independence, Retire Early), but I’ll admit – that movement really changed how I think about saving.

I realized that right now, when I don’t have huge obligations, I should push as much money as possible toward the things I decide matter. That’s what real wealth-building means to me: being intentional.

This hierarchy is my compass. When life gets messy, when I have to choose between competing costs, it keeps me from making emotional, regret-filled purchases.

So when I’m tempted by new skincare or a shiny limited edition makeup release, I pause and ask myself:

👉 “Have I already taken care of the higher priorities on my list?”

Usually, the answer brings me back down to earth.

On paper, my hierarchy looks like a pyramid: the top holds the non-negotiables, while the bottom contains the “nice-to-haves” that can be cut if needed.

And here’s the beautiful part: this structure gives me freedom. It means I don’t have to choose between “Your Money or Your Life” (yes, I’m referencing Vicki Robin’s book 😉). Done right, I can actually have both.

MY SPENDING HIERARCHY EXAMPLES 📊 - 2025 EDITION

What types of values do we have? I'll tell you using my example. Again, I'm writing everything for 2025, and I have a feeling the next 2-3 years will bring changes in this area.

  1. Family and Friends - The core of my hierarchy. I know that whatever happens, I'll want to help and support them.
  2. Finances - as I mentioned - I want to use my time without commitments to invest as much as I can (goal is 50% of income going to investing). I already have my emergency fund and nearly maxed out my Swiss 3a pillar. Each milestone gives me peace of mind.
  3. Health - Regular check-ups, movement, balanced meals. Not necessarily organic everything, but simply nourishing my body.
  4. Career & Growth - Currently, I'm slowly looking for new development opportunities and creating a side business to prepare for changing priorities.
  5. Adventures & Travel - It's great to travel and enjoy capturing life moments, but right now I try to do this locally. After all, hey! Switzerland is wonderful. I know the time for bigger trips will come.

BUDGETING PRINCIPLES FROM MY HIERARCHY

From these values flow the principles that steer my budget:

  1. Every Franc Must Work - In line with the thought that every day I wake up for work that I do as thoroughly as I can, I don't want my money to go in unknown directions. That's why I treat every franc like my employee, and I become their supervisor. I don't want them to waste their potential - after all, that's not why I sacrifice my work time!
  2. Pay Yourself First - Robert Kiyosaki popularized this principle in his book "Rich Dad, Poor Dad." While I didn't hear it from him first, it hits the mark. First, secure the highest elements in your hierarchy in your budget. I definitely check possible family visits and only then establish savings expenses.
  3. Everything Can Change - I came to this principle myself and I admit I'm giving it a year or two to test. I read in various rules that once established, a budget is unchangeable and shows us our expectations versus reality. However, I bet on a more fluid approach to the topic. As long as the monthly balance adds up and the above principles have already come into play, I'm open to budget juggling during the month.

SAVING AND INVESTING SYSTEM - sneak peak!

This deserves its own post (and trust me, it’ll come).

The bag of money called "Savings" cannot just lie around in my system (see point 1 of principles). Even if theoretically I already sent this money to work in the "Savings and Investing" corporation in the budget, they go to different departments.

Currently, my own, finance company isn't too huge, so they have a few available options:

  1. Emergency Fund - 6-month financial block, divided into 2 subdivisions:
  • Savings account - tiny interest, but instant access
  • Three-year government bonds - not high % there either, but they bring stable profit
  1. Pillar 3a - Completed this month! Certainly in 2026 I'll start by completing it right away.
  2. Investments - Currently part of this department is innocently training in the savings account, but ultimately will be appropriate investments here:
  • REITs
  • ETFs
  • Gold
  • And maybe… one day, a vacation rental property

For years, I dreamed about buying an apartment in Poland for rental income. But the market’s tough: high prices, bad conditions. So lately, I’ve been toying with the idea of buying in the mountains – a place for us to enjoy, and rent out the rest of the year. It’s still a “what if” project, but fun to dream about.

In the meantime, I’m exploring REITs. They’re not the same as owning physical property, but they could scratch that itch for now.

SUMMARY - But Actually, Why All This? 🤷‍♀️

Honestly, it comes down to this: I don’t want my budget to feel like a cage. I want it to feel like freedom.

Whenever I’m about to spend, I ask myself simple questions:

  • Will this purchase actually make me happier?
  • Does it align with my hierarchy?

Of course - we're not talking about buying bread in weekly shopping, but definitely a candy bar during work.

I always start my budget with fixed expenses and savings – my two untouchable pillars. As long as those are covered, I feel satisfied. That’s my “one thing” in budgeting: the action that makes everything else fall into place.

Each of us, thanks to hierarchies, can also find that one thing that will positively affect us and give us joy that we succeeded.

The rest? Flexible. Personal. Evolving.

Because let’s face it: every day we’re bombarded with ads, shiny offers, endless temptations. My hierarchy shields me from all that noise. It helps me stay true to what matters most, and gives me the ultimate prize: peace of mind and freedom.

Remember: This hierarchy is personal and should reflect YOUR values and current life situation. What works for me might need adjustment for your circumstances. The key is having a clear system that guides your financial decisions! 💪✨

Have a nice day!

Ciao, Bella!