Whether you are just starting your financial journey or have been building your financial wealth for a while, managing your finances can feel overwhelming. It often seems like there’s always a new book, a new strategy, or a new “must-follow” rule, which can make it hard to know where to start or what to focus on. Remember, it’s okay to feel this way—you’re not alone.
But what if I told you there’s a simple framework that can help you build wealth, no matter your current situation? A framework you can adjust to fit your life—your age, family, career, health, and goals. That’s what I want to introduce you to today: a 3-step framework to building financial wealth that comes down to three simple words: Earn, Save, Invest. Easy right?
Today, we’ll explore the basics of the Earn-Save-Invest framework, how it fits into your financial journey, and how you can adjust it based on your financial archetype—whether you’re in the Money Trap, Money Dependence, Money Anxiety, or Money Freedom mindset.
Know that this is just an introduction. In future articles, I’ll break down specific actions for each of these steps.
Let’s get started.
1. Earn: Building Your Income Base
The first step in building wealth is to earn money. This might sound obvious, but “earning” can mean different things depending on your goals, stage of life, and current circumstances. Earning is all about building your income base, which gives you the fuel for the next steps: saving and investing.
When we think of “earning,” we often think of our job or career. But earning can go beyond just getting a paycheck. It could mean starting a side hustle, monetizing a hobby, negotiating a raise, or even making passive income from assets like rental property or digital products. The key here is to find ways to increase your income in a way that aligns with your skills, time, and goals.
Which Archetype Needs to Focus on Earning?
If you’re in the Money Trap archetype, earning should be a priority. People in the Money Trap often feel powerless when it comes to money, believing it’s scarce and out of reach. By focusing on increasing your income, even in small ways, you can start to challenge those limiting beliefs and build a stronger financial foundation. Maybe that means asking for a raise, or maybe it means picking up a gig that aligns with something you enjoy.
For those in the Money Dependence archetype, earning is about becoming less reliant on external support. You might be used to leaning on others or waiting for luck to bring financial security. By focusing on actively earning and taking ownership of your income, you can start building true financial independence.
Pitfalls to Watch Out For
Money Anxiety types may already be focused on earning but can find themselves feeling like they’re on a never-ending treadmill—constantly worried about not making enough. If that sounds like you, it’s important to balance your effort here. Yes, earning more can create security, but it’s also important to focus on enjoying the fruits of your labor. Sometimes the goal isn’t to earn more but to learn to feel secure with what you already have.
2. Save: Creating a Safety Net
The next step in the framework is saving. Saving is all about creating a cushion that protects you from unexpected life events and provides you with a sense of stability. This step is crucial for building a foundation that lets you invest confidently later on.
But saving isn’t just about putting money into a savings account. It’s about being intentional with your spending, understanding your priorities, and making sure you have a plan for emergencies. Saving might look different depending on where you are in life: for some, it might mean building up an emergency fund, while for others, it might be about putting aside money for a specific goal like taking a trip, buying a house or taking a sabbatical.
Which Archetype Needs to Focus on Saving?
If you identify with the Money Dependence archetype, saving is an important step towards independence. Building a safety net means you’re less reliant on external help. It empowers you to make decisions without feeling tethered to someone else’s support or luck.
For those in the Money Trap archetype, saving even small amounts can help shift the mindset from scarcity to possibility. It’s less about the amount saved and more about creating the habit of saving—showing yourself that you do have control over your finances.
Pitfalls to Watch Out For
If you’re in the Money Anxiety archetype, saving might already be second nature to you—maybe even to a fault. You might be saving so much that you’re missing out on enjoying your life in the present. If that’s you, consider loosening up a bit. Your savings are important, but so is your well-being. Spending on experiences that bring you joy can also be a healthy part of your financial plan.
3. Invest: Growing Your Wealth
The final step is investing. While saving is about protecting your money, investing is about making it grow. Investing can feel intimidating, but it’s one of the most powerful ways to build long-term wealth. The beauty of investing is that it lets your money work for you, rather than you always working for your money. It also helps disconnect your income from your time, allowing you to build wealth without constantly trading hours for dollars.
Investing can mean different things—stocks, bonds, real estate, or even investing in yourself through education or skills development. The goal is to put your money in places where it can grow over time, ideally outpacing inflation and helping you reach your financial goals.
Which Archetype Needs to Focus on Investing?
If you’re in the Money Anxiety archetype, investing might be the step that scares you the most. There’s a natural fear of risk—what if the market crashes, what if I lose it all? But taking small, calculated risks can help you break out of that anxious mindset and move towards financial freedom. Start small. You don’t need to put all your savings into the stock market overnight. Maybe you start by investing a tiny percentage—just enough to dip your toes in and get comfortable with the process.
For those in the Money Dependence archetype, investing is an opportunity to create your own financial growth rather than waiting for it to come from somewhere else. It’s about taking ownership and being proactive with your future. However, investing is not and should not be gambling. Make sure to understand the asset you’re investing in and the risk involved with your investment, and avoid making impulsive decisions.
Pitfalls to Watch Out For
If you’re in the Money Trap archetype, it can be tempting to avoid investing altogether—especially if you feel like money is scarce and losing it would be disastrous. The key here is to start small and focus on education. Understanding how investing works can help you feel more comfortable and confident in taking that step.
Adjusting the Knobs Between Earn, Save, Invest
The beauty of this framework is that you can adjust the knobs depending on your circumstances and goals. Maybe right now, you need to focus more on earning—getting that raise or starting that side hustle. Or maybe you’re in a stage where saving is your top priority, building up that safety net so you feel secure. Or maybe you’re ready to turn the dial up on investing and make your money grow for the future.
Your wealth building strategy will look different depending on your stage of life. If you’re young and just starting out, you might put more focus on earning and saving. If you’re a bit older and have a solid income base, it might be time to prioritize investing. When nearing retirement, your focus may shift back to saving, with a decrease in investing to protect your wealth. The key is to think about where you are, what your goals are, and which knob you need to turn up or down to get there.
Tailoring the Money Beliefs Framework to Your Archetype
Your Money Beliefs Archetype can also guide you on where to focus. If you’re in the Money Trap, your main priority might be earning—getting out of that scarcity mindset by bringing in more income and starting to save, even if it’s just a little. If you’re in Money Dependence, saving and investing are key to building independence and security. If you’re in Money Anxiety, you may need to invest more—not just financially, but also in enjoying your life today. And if you’re in Money Freedom, it’s all about fine-tuning—maintaining balance across all three steps to live a fulfilling and empowered financial life.
Conclusion: Start Where You Are
The Earn-Save-Invest framework is simple, but powerful. It’s not about going all-in on any one or all three of these steps—it’s about finding the right balance for you, based on where you are today and where you want to go. Your financial journey is unique, and it’s okay for your priorities to change over time. The important thing is to take action, no matter how small, and to keep moving forward.
In future articles, I’ll dive deeper into each of these steps—sharing concrete examples and actions you can take to get the most out of earning, saving, and investing. For now, think about which area you want to focus on and how you can start making small shifts today. Remember, building wealth is a journey, not a race. Let’s take it one step at a time.