Customer Review

194 of 206 people found the following review helpful
5.0 out of 5 stars Good, sensible advice, January 13, 2004
This review is from: The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich (Hardcover)
The advice by David Bach may not be new, but how many people are applying it? Pay yourself first was originally covered in the classic Richest Man in Bablyon and the late Charles Givens beat it to death in his classic More Wealth Without Risk. Most people have heard about it, but again I ask, how many people are actually doing it?If you are not taking at least 10% of your paycheck and paying yourself first then you are cheating yourself.Think about it; we pay our mortgage, phone bill, telephone bill, light bill, garbage bill, credit card bill, groceries, entertainment etc. but the last person that gets paid is ourselves.Bad strategy.I also agree that most people are not taking maximum advantage of their companies 401 (k) plan and/or IRA. I know people that tell me all the time that they cannot invest in a 401 (k) or IRA but I find these same people are livin examples of what Bach talks about in his book. People who always eat out. Waste money on bottled water, coffee, donuts, cell phones, extra, unneccessary clothes and so on but have no savings, no 401 (k) and nor IRA.Bad strategy.The biweekly mortgage concept is also a great way to pay off your mortgage 5 years earlier with the same amount of money. As Bach explains, this could save you $25,000 or more. People are getting ripped off with credit card debt and the banks are certaintly no help. As Bach tells us, miss just one payment and late fees are added in and your interest rate jumps up ensuring that you will never get out of debt. Exactly what the banks want. Bach recommends making extra payments on your cards which I agree with. He also recommends cutting up your credit cards which I don't totally agree with, unless the person is just totally out of control.Lastly, Bach does recommend mutual funds as the safest way for the average investor to invest. I agree here too. The average investor has no business playing the stock market. The only thing I would suggest is to pick up a copy of Charles Givens book More Wealth Without Risk. Givens teaches a strategy called "the money movement strategy" which has you in the best investments per the economy. For example, following Given's advice you would have been out of stock funds in 2000 and not suffered the huge losses that so many other "buy and hold" investors did but into other investments that went up by 20%-40% per year from 2000 through 2003.It's true that Bach offers no "no money down" ways to buy real estate. That is not his goal here. I would suggest Robert Allen's book "Nothing Down" if that is your goal.Overall, Automatic Millionaire is a great book for anyone interested in adding to their wealth. If these concepts soud familiar, let me ask you a question: how are you doing with them? Sometimes the best advice is just a reminder of what we already know.Good book. Highly recommended.
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