— Money: Master the Game P. 90
The core concept of successful investing is simple. Grow your savings to a point at which the interest from your investments will generate enough income to support your lifestyle without having to work. Eventually you reach a ‘tipping point’ at which your savings will hit a critical mass. This simply means that you don’t have to work anymore — unless you choose to — because the interest and growth being generated by your account gives you the income you need for your life. This is the pinnacle we are climbing towards.”
Dividends still don’t lie, Kelley Wright p. 4
Generating sufficient cash to meet your needs will be a primary objective until you die. If you have loved ones you are responsible for, they will continue to need cash after you die.
During the employment years, you must make wages, salaries, and bonuses do double duty, providing for current needs while investing for the future. Optimally, the invested cash will generate sufficient interest, dividends, and capital appreciation to meet your future needs when your wages, salaries, and bonuses are no longer your primary sources of income.
Your long-term challenge then will be to balance your cash flow between your current cash needs and your needs to accumulate cash for the future. Your level of success in this endeavor can be positively impacted by a modicum of financial planning.”