Sunday, November 24, 2013

Why invest money ? Part 1

     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.


     I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.  Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk


  1. "You only live once" - I hear this sentence everywhere!
    And I hate this four words!

    I´m like James Bond "You Only Live Twice".
    And in this life NOW - I will NOT spend a lot of money!
    I´ll spend a lot of money in my second life... ;-)

    Best regards!

    1. Dividenden-Sammler,

      Saving and investing through the idea of paying myself first as definitely made my life easier. It will also allow me to have more choices such as what type of company to work for.

  2. Good for you! You'll be better off, for having saved an invested. Those same people say they will save (or for that matter give) when they have money left over......but they never have any left over and therefore never save. They don't realize that they don't need to make more money......they just need to spend less than they make :o)

    1. Fast Weekly,

      This weekend, which is United States Thanksgiving week end, was kicked off by Black Friday. This is the day people go line up in droves to get deals on things like electronics or furniture at reduced prices. Some of these people buy things that they don't even need or will use enough to warrant buying it,

      I will stick to my saving and investing plan!!!

  3. Hi Investing Pursuits,

    Good little post here! I too was primarily motivated by Rich Dad, Poor Dad and the concept of purchasing cash flow generating assets instead of shiny new TVs and game consoles.

    The pay yourself first mentality is also the best way to start it out. I'm currently trying to save 60% of my income to purchase income-generating assets.

    Best Regards,
    Dividend Beginner

    1. Dividend Beginner,

      Paying yourself first 60% is a fantastic rate of savings. Cash flow generating assets are heaven as they are less taxed then a job, interest or dividend get paid like clockwork and it helps you to sleep better a night. Nowadays, jobs seem the least safest way to make money.