How Im getting richer every day 4 ways to increase wealth

How Im getting richer every day 4 ways to increase wealthHow Im getting richer every day 4 ways to increase wealthIm not hungry for money. Compared to several years ago, when I had less money, I still have the saatkorn life.I wake up, drink my freshly brewed coffee, read a good book, and then start working until about 3 or 4 in the afternoon. Then, I put on my shorts and t-shirt and start working out.Sometimes I listen to music during my workouts, and sometimes I dont. After working out, I have dinner with my family. We watch a TV show or movie after we eat. And then, I get back to working or reading.You see, it doesnt take much money to live a good life. Benjamin Graham, one of the most respected investors of all time, once told his apprenticeMoney isnt making that much difference in how you and I live. Were both going down to the cafeteria for lunch and working every day and having a good time. So dont worry about money, because it wont make much difference in how you live.Of cours e, his apprentice was Warren Buffett, whos one of the wealthiest people of all time. And after reading his biography, Snowball by Alice Schroeder, Im pretty sure hes also one of the most frugal people of all time as well.The man was notorious for his spending pattern. That is, he didnt spend money at allBut if we look at Buffetts strategy, we must admit that it works.Enjoy your simple life, save your money, invest it wisely, and dont lose your money. Thats how you get richer every day.In the rest of this article, I explain how I apply this strategy in daily life.1. Live leanI keep my expenses as low as possible without sacrificing the quality of life. My apartment isnt big, my mortgage is low and so are my energy and water costs. I drive a Fiat 500, and my car insurance is 26 ($30) a month. And I only fill it up with gas once a month because I live close to my office, friends, and family.I stopped buying fashionable items like gadgets and clothes that are in. But I must say, I dont save on my wellbeing. I buy books every month. I eat good food. And I go to a good gym. And I also built a small gym in my office.You see, I dont live like Mr. Money Moustache or minimalist folks, I have my own definition of living lean.That is Dont spend your money on things that dont give you lasting benefits.For example, healthy food keeps me fit and lean. Books satisfy my thirst for knowledge and thinking. Working out gives me calm. Going on trips and holidays give me inspiration. And so forth.But you know why Im not afraid to spend money? Too often, we despise greed - which is also an extreme state of mind.However, if we dont spend money at all, we become stingy and fearful - another extreme state of mind. And thats no good either. Seneca said it best in On The Shortness Of LifeYou can make the same point that rich and poor suffer equal distress for both groups cling to their money and suffer if it is torn away from them.Strive for balance, my friend.Never spend mora than you earn. But remember that life is too short to eat rice and beans.2. Always keep a bufferSo we all know how to build wealth, right? Save your money and then invest it. Thats the idea.But before you even think about investing, you need a buffer. What will you do when your fridge breaks down? Okay, I admit it thats a clich. Let me give you a better example.Lets say youve experienced hardship for the past year or so. A family member passes away. You get ill. And youre having less fun at your job. Things have been tough.If you have a buffer, you can say, fk it, lets go on a holiday.Money buys freedom. We must be honest about that. However, you dont need a million bucks to be free. Personally, I like to have 10K ($12k) on my savings account that I can always access.For the first few years of my career, I worked hard and didnt spend much money, so I could build up my buffer. And ever since I built up my buffer, I never let it dip below that number. I also dont invest that money. I dont car e about inflation since I make money in different ways.My buffer is here to keep my mind at peace and helps me to do what I want.3. Invest defensivelyLook, individuals like you and I never make money with stock trading. Whats more, professionals dont even make money with trading.Just look at the results of fund managers. Almost no one beats the market. And if they do, its probably because of luck. At least, thats what Nassim Nicholas Taleb has been saying for almost two decades.For the past few years, Ive become more risk-averse. I stopped investing in individual stocks. Its too risky. Plus, when I own stocks of a company, I cant help myself from looking at the performance on a daily basis.Thats why I put my money in datenbankindex funds - where youre essentially investing in a whole group of companies, bonds, etc. Of course, there is still risk involved. But at least Im saving myself time because Im no longer trying to pick stocks, which is a waste of time.If you want to learn mor e about index funds, I recommend reading The Little Book Of Common Sense Investing by Jack Bogle. I also made a booklist with the best personal finance books that Ive read.Once a month, I buy more shares of the Vanguard SP 500 ETF and thats it. The cost is low, and the risk is also relatively low (when a company thats on an index goes bust, it gets replaced by another one).I dont trade ETFs, and I dont look for other better index funds. Thats my whole investing strategy. It can go up, it can go down, but at least Im not bothered by it.4. Diversify incomeLets be realistic, the return I get from the index funds is NOT income. In fact, I dont try to make money with investing.Wait, what? That doesnt make sense.Let me ask you this Whats the purpose of investing? To me, its not about making money. Its about building wealth. And those two things are very different. I invest for my retirement. Thats about my future.I make money by working today. So instead of spending hours trying to divers ify your investments, diversify your income.Thats the biggest mistake people make. They rely on one income stream. And even if you have a job, there is no excuse to only rely on your employer for 100% of the money you earn.Think about it. Why does your money come from one stream? Is that your strategy? Why?Forget about active investing and diversification - thats for the delusional or the professional.Generate more money. Sell something online. Rent out your apartment on Airbnb and go live with your parents on those days. Provide value in exchange for money (listen to my podcast episode about it if youre interested in blogging as a career). Do what it takes.Generate cash. Then, invest it in assets. Buy real estate. Rent it out. But dont take it too lightly.Yeah, Im going to buy an apartment right now and immediately rent it outIf it was so easy, everybody would be rich. The world has changed. Banks dont lend money easily.You need income. Everybody dreams of having passive income bu t thats only the second stage of your financial strategy. First, you make money, and then, you invest it.And after that, money itself will take care of the rest.This article first appeared on DariusForoux.com.