$ Invested

Investment is the money you put at risk. Investment sometimes comes from windfalls. However, savings is a more reliable, predictable source.

The relationship between wealth and savings is linear. Doubling savings will double wealth. Savings rate predicts wealth. Increased income doesn't directly tie to increased wealth, but it can allow increased savings. Increased income increases savings when expenses are held constant. Reduced expenses increase savings when income is held constant.

To increase income, work more hours, get a better job, get a second job, or develop multiple streams of income. The multiply streams of income approach has been promoted recently by authors Robert T. Kiyosaki* (Rich Dad, Poor Dad), and Stephen M. Pollan &' Mark Levine (Die Broke: A Radical 4-Part Personal Finance Plan). Multiple streams of income can also help diversify your income stream.

To reduce expenses do it yourself. Joking. Well at least do your own portfolio management.

The slides in the products section have some ideas on how to cut back on expenses. If you are having trouble saving/investing, or just looking for more ideas, two books may help:

• How To Live Without A Salary is by Charles Long, he promotes what he calls a Conserver Lifestyle
• The Tightwad Gazette is by Amy Dacyczyn, she promotes thrift as a viable alternative lifestyle

Both books give interesting, useful specifics on how to reduce expense. They also inspired me to think differently about the poor-wealthy continuum and the frugal-affluent continuum.