How I Build Wealth

 #build#

Invest Defensively

Look, individuals like you and I never make money with stock trading. What’s more, professionals don’t even make money for you with trading.

Just look at the results of fund managers. Few beat the market. And if they don’t, they will still make money for themselves — you’re the one who loses.

And if they do beat the market, it’s probably because of luck. At least, that’s what Nassim Nicholas Taleb has been saying for almost two decades.

For the past few years, I’ve become more risk-averse. I stopped investing in individual stocks. It’s too risky. Plus, when I own stocks of a company, I can’t help myself from looking at the performance on a daily basis.

Diversify Income

Let’s be realistic, the return I get from the index funds is NOT income. In fact, I don’t try to make money with investing.

“Wait, what?! That doesn’t make sense.”

Let me ask you this: What’s the purpose of investing? To me, it’s not about making money. It’s about building wealth. And those two things are very different. I invest for my retirement. That’s about my future.

I make money by working today. I do that in different ways. I own a software automation company together with my family, I offer online courses, books, coaching, and I own two properties.

So instead of spending hours trying to diversify your investments, diversify your income.

That’s 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.