During the earlier years of our life, people are generally less secured; the income is lower and has a high responsibility, married or single. When we get older our responsibility line should go lower and the only way to lower down our responsibility is to build our savings and investments.

Two BIG IFs in L-I-F-E

IF a person dies too soon.

If we die too soon the problem is not with us because we are dead already. The problem is with the family we left behind. Imagine the burden if we do not have enough savings & investments for our family. Their needs are permanent but our income is temporary. The same goes when we get disabled due to accidents or illness. Our income stops. That is why it is very important to an income earner to have a sufficient life insurance.

IF a person lives too long.

If we live too long, will it be a blessing or a curse? It depends. If we have built enough savings and investments that can cover our entire retirement years, yes, it will be a blessing. The most expensive part of our life is not raising a new born baby or sending kids to school but "retirement." Our income has stopped already but our needs are permanent as long as we live. If we live or wish to live too long, we need to build our investments so we can provide our needs without working or asking financial help from our kids and grandchildren. We have to be financially independent. We need to create passive income and call ourselves, LOI or "living on interest."