Personal Finance 101 – muft malomat

personal finance: Out of all the videos I have made on this topic, if you watch and understand today’s video, I assure you, it will greatly benefit your life. Economics and personal finance have always been my favorite topics, and today we are going to delve deeply into a framework that will help you understand where you currently stand in life and where you are headed. This framework, which I have named the Personal Nas Pyramid, was initially introduced to me by my friend Faizan ul Haq. I have added my insights to it, creating a robust tool to assess and improve your financial standing.



Understanding the Personal Nas Pyramid

The Personal Nas Pyramid is akin to the pyramids of Egypt, representing different levels that one must climb to achieve financial success. Let’s explore these levels in detail.

1. Skilled Economy

At the base of the pyramid lies the Skilled Economy. This is where you trade your hours for money. You might be a clerk, a teacher, a driver, a gardener, or even a data scientist or a politician. No matter how skilled you are, if you die today, the income stops because you are directly trading time for money. This level involves various professions, and the income varies significantly—from Rs 15,000 a month to several lakhs per hour for highly specialized professionals. However, the essence remains the same: your earnings are directly proportional to the hours you work.

2. Essential Economy

The next level is the Essential Economy, where we address the basic needs: food, clothing, and shelter. Nowadays, essentials have expanded to include healthcare, education, and transportation. Here, you start saving and investing. Common practices in Pakistan and India include buying real estate and renting it out. This provides a steady income stream, allowing you to live comfortably. The goal here is to create assets that generate passive income, thus reducing your dependency on actively working for every rupee.

3. Business Economy

Ascending to the Business Economy, you start creating wealth by owning a business. You hire people from the Skilled Economy to work for you. If you die, your business will continue to generate income for your family. This level involves a variety of businesses, from small shops to large corporations. Here, you create generational wealth, as businesses can be passed down to your children, ensuring financial stability for future generations.

4. Venture Economy

In the Venture Economy, the focus shifts from running businesses to providing capital. You become a financier, lending money to others for business ventures, buying houses, or starting new projects. Banks and large financial institutions dominate this level. They make money through interest and investments, essentially earning passive income from their surplus funds. This level requires substantial capital and financial acumen, as you are now making money work for you.

5. Influencer Economy

At the pinnacle lies the Influencer Economy, a relatively new phenomenon. Influencers wield significant power, and their words and actions can sway markets and public opinion. They do not necessarily trade hours for money or run traditional businesses. Instead, they leverage their reputation and following to generate income. Examples include social media personalities and public figures whose endorsements and statements can cause massive economic shifts. This level can be reached much faster in today’s digital age compared to the traditional path of decades of hard work.

Achieving Financial Independence

Now that we have an understanding of the Personal Nas Pyramid, it is essential to know how to climb this pyramid efficiently.

Start with Skill Development

Skill development is crucial. Whether you are just starting your career or looking to improve, honing your skills is the foundation of financial growth. Focus on acquiring skills that are in demand and offer high earning potential.

Save and Invest Wisely

As you earn, saving and investing become paramount. Create a budget that allows you to save a portion of your income regularly. Invest in assets that appreciate over time, such as real estate or stocks. Diversify your investments to mitigate risks.

Build or Buy Businesses

Once you have a stable financial base, consider starting or investing in businesses. Businesses not only provide income but also create jobs and contribute to the economy. Look for opportunities in sectors that you are passionate about or have expertise in.

Leverage Financial Instruments

As you accumulate wealth, explore financial instruments like stocks, bonds, mutual funds, and other investment vehicles. These can provide higher returns compared to traditional savings accounts. Additionally, consider lending money as a way to earn interest income.

Develop a Personal Brand

In the digital age, building a personal brand can accelerate your journey to the Influencer Economy. Use social media and other platforms to share your knowledge and insights. Engage with your audience and build a following. This can open doors to numerous opportunities, from endorsements to collaborations.


The Personal Nas Pyramid provides a clear roadmap for financial success. By understanding where you currently stand and identifying the next steps, you can systematically improve your financial situation. Remember, the journey to financial independence is a marathon, not a sprint. Stay focused, keep learning, and continuously strive to move up the pyramid.

Visited 19 times, 2 visit(s) today
Scroll to Top