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Step 1. Making money
The first step towards achieving financial independence and getting rich is to make money. Unfortunately, the connection is not that easy, if you earn money, you automatically get more money. For example. The more you earn, the more tax you pay. It is extremely difficult if not impossible to earn a fortune in Sweden today. The little arrow represents how much the actual service of money contributes to your total wealth. It is least because it is the least important in relation to the other two arrows.
Step 2. To save money
The second step is to save the money you earn - actually a no-brainer. If you save money you get more money. In the picture, this is represented by a little bigger arrow than the arrow from earning money. That is, the saving itself increases your wealth more than the service of money itself - yet it is still not the most important step towards wealth.
Step 3. To invest money
The third step is really the most important thing in the process of building a fortune. This is the first step in which you do not earn money in exchange for your work (read: your time) without your money working for you. The third step is closely associated with the next step.
Step 4. Interest on interest
Once your money has started working for you instead of working for them, you'll also experience a leverage in terms of the interest-on-interest effect. Your earned money thus contributes to earning more money.
How it all goes together
As you can see above, all three steps go together and none of them can be removed without breaking the chain - that is, you must be able to handle all of these three fundamental concepts to become; rich, economically independent or free - depending on what you choose to call it.
