BOOK: The Automatic Millionaire
AUTHOR: David Bach
SEXINESS: To the max!
The fastest book i’ve ever read! And this is super impressive as a) i’m a sloooooooow reader, and b) it wasn’t even a fiction book! haha… of course, i did just come back from a 4 hours plane trip :) But still, there was no way i’d finish it if it wasn’t interesting in the least.
Was i impressed? Y-E-S. I give it an A+ overall! SUPER easy to read, SUPER easy to follow, and SUPER easy to act on. I’m a big fan of action over theory (most times), and the author listed simple step-by-step items to follow after each chapter. Which also makes it easy to put down, and pick up at any time. And unless you’re already a millionaire, i’d recommend at least skimming it at the bookstore.
The general concept: Save at least 10% of all income for yourself, and automate EVERYTHING. he breaks it all down nicely, and even gives out the names and contact info of those he rates as pretty high.
According to Bach, there are only 3 things you REALLY need to do:
- Decide to pay yourself first 10% of what you earn – We’ve all heard it, but not everyone follows it. Pick a % that works for you (he recommends at least 10%, but even 2% is a start), and let it build. automate it.
- Make it automatic – Set up direct-deposits from your paycheck into your retirement fund. Automate cash xfers into your “rainy day fund” (3 months of expenses). Automate bill payments through your checking acct. Basically, handle all financial transactions automatically.
- Buy a home and pay it off early – A MUST in his eyes. While this step is the hardest of the group, he’s pretty adamant that if you rent you’ll almost never become a millionaire. No matter your current situation, buying pays off in the long run. Once you own, use the “bi-monthly” payment plan to pay off the mortgage 7-10 years earlier.
There’s a TON of other good information in the book, like how to get rid of credit cards faster, and finding your “latte factor” (daily expenditures that could easily cut in half), but I really enjoyed the stories on how people have actually followed this! These days, it’s easy as pie to automate everything. As long as you have a steady stream of income, you’re golden. Even if you don’t, following the main rules will still guide you nicely.
To be honest, it’s just nice reading something that is not only do-able, but extremely easy! And you know what? I actually believe i’m going to be a millionaire! Not 100% because of this book, although the motivation is killer, but because if you can learn how to save it’s just a matter of time. It won’t happen next week, or even 5 years from now, but I’ll tell you one thing – when i’m leaning into the mid-life stage, you better believe i’m not gonna have a crisis!
The only thing i didn’t like hearing was that “you don’t need a budget”. Psshhh, come again? I think all he’s trying to do is to get you to focus on the 3 main points above, and basically forget all else you’ve tried & failed at. I see his point, but i’m not listening. Doesn’t he know budgets are sexy!
At any rate, take what you will from all of this. Everyone’s different, but i’m fairly confident you’ll at least get one thing out of it. I personally put my stamp of approval on this bad boy, and about to pick up another copy for my bro. $4.15 used on Amazon?! Shoooooot….i’m keeping mine ;)