Financial stability exists along a spectrum, with individuals and households occupying various positions based on their economic resources and circumstances.

TIER 3

At the top end of this spectrum are those who can comfortably afford their basic needs without significant worry or strain. These individuals typically have stable incomes, sufficient savings, and manageable expenses. They have the means to cover essentials such as housing, food, healthcare, and transportation without sacrificing other important aspects of life. This level of stability provides a sense of security and allows for planning for the future with confidence.

Tier 2

Moving down the spectrum, there are individuals and families who regularly meet their basic needs but experience occasional stress or anxiety about finances. Despite having steady incomes, they may find themselves living paycheck to paycheck, with little room for unexpected expenses or emergencies. While they can afford essentials most of the time, they may need to make sacrifices or cut back on discretionary spending during lean periods. This level of financial stability requires careful budgeting and may involve occasional trade-offs between immediate wants and long-term financial goals.

Tier 1

At the lower end of the spectrum are those who frequently stress about meeting their basic needs and often struggle to do so. These individuals may have irregular or insufficient incomes, high levels of debt, or significant financial obligations that outpace their resources. As a result, they may regularly face difficult choices between paying bills, buying groceries, or covering other essential expenses.