In Saving Tips, Managing & Making Money, we love to showcase books which could help anyone improve their finance security and ultimately, their financial freedom, and while many books can be eye-opening when it comes to money managing, there aren’t many as direct as this one.
The Automatic Millionaire isn’t a mindset book, as a guide to actually become a millionaire using different compounding methods and investment options available while creating a platform that will do this for you using several financial products at our disposal.
This can be really exciting for a person who’s willing to start putting the effort right away, because these techniques actually work. In the book, David Bach focuses on two key components of his philosophy, “pay yourself first” and “the power of compound interest.”
Although the tittle can be considered as sensationalism, it actually isn’t. The guide works and has worked for many people in the past. The rules are explained in detail by the author with some examples and guidelines to implement them as soon as possible.
Pay Yourself First
This lesson is something that anyone could understand from the start, but almost no one practices it. It revolves around the idea that we should pay everything to meet the “millionaire plan” before even start to consider our own expenses. This is a hard pill to swallow, but when you integrate this, you’ll become more powerful thanks to your own self-control. Everything adds up, and compounding is the weapon of choice here.
The Latte Factor
“The Latte Factor” refers to how we spend money on things we really don’t need. This is where the same compounding effect which can make you rich will actually make you a poor person. You have to create a budget and start figuring out where you can cut your losses on a daily basis. It’s called “The Latte Factor” because David Bach talks about how this little latte purchase every day can cost you more than a million dollars if you think about the long run, which is key in order to obtain financial security.
Automate Your Savings
This lesson talks about how you can actually make all of these little “pay yourself first” fees automatic using different bank services and products. If you manage to set up an automatic deduction system for every time you get paid, you’ll get used to the saving mechanism with no resistance. This is a fundamental part of the book, and it is the cornerstone of the title, as not having to deal with all these transfers every month will give you peace of mind, plain and simple.
The Honest Truth – Is it Worth Your Time?
Although the book has little-to-no really new concepts to bring to the table, the fact that The Automatic Millionaire is a really easy-to-read book is refreshing on its own. It is one of the simplest guides you can read in order to obtain financial security and freedom, and the best part? It actually works like a charm!