We all have been around the people who say "you only live once". These same people can't wait to get paid from there jobs so they can spend the money. These people have the best video game console, big screen tvs, a good car. When the end of the month comes, they are completely out of money and saved nothing. I have been around people who say things like " I am too old to start investing" and "I will have to work until I die". These same people seem to be stressed out a lot more than people who spend less.
I decided I didn't want to be like these people. So I decided to read more and more financial books. I read Rich Dad Poor Dad by Robert Kiyosaki. Robert and Kim Kiyosaki started out paying themselves first 30% of their money regardless of where it came from. With this money that they paid themselves first which was used to buy cash flowing assets. So I basically started with the 30% as a number to pay myself first. The 30% was divided 2/3 to savings and 1/3 to investing. I want to make it clear that I do not agree with everything Robert Kiyosaki does.
What has this done to by life? I found I have been able to sleep better as I am less stressed. I have been raised in a household were money was not mentioned. My parents didn't invest or know anything about investing. I have built up a portfolio that generates approximately $3000 in annual passive income. This is money that I don't have to physically work for. Everything single month my passive income grows through DRIPs and on occasional an investment purchase.
The investments decisions I make today, will help in dealing with inflation. Their are companies to invest in that increase there dividend annually and it if often greater than the increase in inflation.