Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Other Sellers on Amazon
+ $3.99 shipping
The Automatic Millionaire, Expanded and Updated: A Powerful One-Step Plan to Live and Finish Rich Paperback – December 27, 2016
"Children of Blood and Bone"
Tomi Adeyemi conjures a stunning world of dark magic and danger in her West African-inspired fantasy debut. Learn more
Frequently bought together
Customers who bought this item also bought
Customers who viewed this item also viewed
Despite its sensational title, David Bach's The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich is not a get-rich-quick guide. Rather, the book is a straightforward march through common-sense personal financial planning that suggests readers "automate" their contributions to retirement and investment vehicles. Bach, in fact, calls his model the "tortoise approach" to becoming wealthy by retirement age.In the early part of the book Bach builds on ideas he established in Smart Women Finish Rich and other bestselling titles. His core principle is that, to succeed, you must "Pay Yourself First." In other words, he suggests using pre-tax retirement accounts (e.g. 401(k)s or IRAs) to set aside a fixed, monthly sum of money before considering what is left for living expenses. The "automatic" part of the title comes from Bach's emphasis on using automated payroll deductions to avoid the temptation of using the money to pay today's bills. Bach insists that "regardless of the size of your paycheck, you probably already make enough money to become rich." But his claims that his plan requires "no budget, no discipline," is a bit disingenuous. His discussion of the "The Latte Factor" shows that, to find money to start a retirement plan, a person with a modest income needs to make an up-front commitment to stop accruing debt and to reduce spending on such "wasteful" items as lattes and cigarettes. In the end The Automatic Millionaire does not offer much that is new for readers already familiar with personal finance basics like accelerated mortgage payments, "the miracle of compound interest," and the setting up of emergency funds. But, for those just starting with financial planning, Bach provides a host of resources to put recommendations into action. He walks his readers through such fundamentals as shopping for interest rates, creating a balanced retirement portfolio, and consolidating debt. And Bach's conversational style will make this quick read highly palatable for those daunted by more detailed investment and personal finance titles. --Patrick O'Kelley --This text refers to an out of print or unavailable edition of this title.
From Publishers Weekly
Bach, author of several bestsellers including Smart Women Finish Rich and Smart Couples Finish Rich, offers a simple prescriptive plan for financial security. The secret: the astonishingly vanilla "Pay Yourself First," which, in Bach's words, is "the one proven, easy way to get rich." Instead of worrying about taxes, budgeting or investing, the key, according to Bach, is to set aside between 10% and 15% of gross income for savings the equivalent of one hour's worth of income every day. While this strategy may seem obvious, many people don't take this basic step. That's why Bach says everyone should write down their "Automatic Millionaire Promise," which spells out what percentage of their income they will start saving by a certain date. To insure that people carry through on their efforts, Bach says they should have deposits automatically made to a retirement account. Then, the next step is to capitalize on the power of compounding by contributing the maximum amount to, say, an employer's 401(k) account. To help readers navigate the maze of investment choices, Bach includes contact information for a number of mutual funds and Web sites offering authoritative financial information. Bach's key principle, along with such advice as buying real estate, paying down debt and making charitable deductions, is not groundbreaking; and regrettably, it may be unrealistic for many: tens of millions of Americans are in serious credit card debt because they can't make ends meet on their salaries; how, then, are they to save so much of their gross income? However, his easygoing approach, complete with real-life examples and clever phrases such as "Latte Factor," will appeal to the many money-challenged consumers who have made a New Year's resolution to get their finances on a firmer footing.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to an out of print or unavailable edition of this title.
Author interviews, book reviews, editors picks, and more. Read it now
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
This book is clearly written, very quick and easy to read, and full of interesting success stories of people who have applied either Bach’s or similar-to-Bach’s methods, and have gotten rich. Ultimately though, it’s not something that requires a book — there are parts where he asks you to journal and/or write out your commitment to saving, but much of the advice in here is going go be fairly common sense to anyone who has looked into any kind of retirement plan either online or through their HR department. There are some nice calculations about how much you will/might save by putting aside 5% vs 10%, etc, but again, there are tools online. Anyone really interested in being more aggressive about saving can find similar information either via individual research or a financial adviser at their bank.
The basic ideas of this book are:
1. Most people don’t get rich because they don’t pay themselves first — they pay the government, their bills, etc, first and so they don’t have enough money left over to pay themselves, i.e. 401k(s), etc.
2. Budgets don’t work because most of us just don’t have enough willpower to stick to it — people who don’t pay themselves first often try to put themselves on a budget, which Bach argues is simply too hard. Bach says that sooner or later, if the money is there and available, we will find a way to spend it…
3. So… Bach argues that people who want to save need to make the process automatic, preferably in payroll deductions that get put into pre-tax accounts like 401k(s) and basically put it somewhere they won’t see it or notice it.
4. Most of us spend money on silly things we don’t even realize — he calls this the Latte Factor and it’s something that’s been featured on various news and talk shows, the idea that we think we don’t have money to save because we’re too busy spending $5 at Starbucks, $10 for a snack, etc, etc. There are some fun calculations about how much you would save if you gave up your daily Starbucks, smokes, whatever small vice you might have, thinking it’s only a few dollars, when really, over time, it adds up.
5. In conjunction with the above point is his tortoise theory: that this is a slow process that anyone can commit to, and that it’s often easier to approach it slowly. Bach talks about how he started by putting aside 1%, and when he didn’t really notice that, he increased it to 3%, etc, so that by the time he was married, he was regularly setting aside at least 15%, and by then, he’d gotten used to it, and didn’t really miss not having that money to spend.
That’s more or less the book — there are some nice success stories, there are some asides where he talks about the fact that in some ways, it doesn’t matter how much you make, as long as you commit to a certain percentage, and he reveals that it was a difficult process for him — as his earnings went up, his expenses kept going up as well. So there is quite a bit of time spent on trying to convince the reader that the process isn’t hard, that anyone can do it, you just have to commit to the process, and that once you do, it can take less than an hour (email your payroll people, say how much you want put aside, etc).
There really was nothing wrong with the book, I just don’t know that it needed a whole book… there were definitely times when I felt like he was dragging out what is essentially one page of information into a whole book (there are a lot of things in BOLD with extra spaces, some graphs and charts that get repetitive, the earlier you save the better, the more you save the better, the less you squander on lattes, the better — now you more or less know the synopsis of all of the pages of charts and graphs). I think almost all the information necessary is summarized above. If you want to save money, you might start by not buying this book.
Comparisons to Other Books/Authors:
This book was a gift, and I genuinely don’t have much experience in this type of book… so it’s possible it’s very good for its genre but I just don’t know it…
c booknosh.com reviews
He also claims that you will never build wealth without using his system. He says, "Please trust me on this. Nothing will help you achieve wealth until you decide to Pay Yourself First. Nothing." (77). However, Bach has many books of financial advice. Do they all have the same advice? Considering how many times he restates the same point in this book, it's appalling to think of how many times he's recycled this material through all his books while slapping on a shiny new title.
I find it interesting that someone who lived paycheck to paycheck would expect to be taken seriously when giving financial advice on how to build savings. It was his life-changing meeting with the McIntyre couple that taught him the "secret" to building wealth, which he graciously shares with all of us. Spoiler alert: direct deposit 15%-20% of your paycheck into a savings account with interest + forgo small purchases like a daily coffee from Starbucks = wealth. This formula is the essence of the entire book. Congratulations, you just saved yourself from soldiering through hundreds of pages, which would have made you cringe from feeling his desperation to take advantage of desperate people.
That is the kind of information that is in "Automatic Millionaire" and if you follow it, you will lose a fortune in the stock market and have all of your net worth tied up in the most illiquid purchase of all, your house.
I bought the audio book, read by David Bach, long before the current meltdown and couldn't believe what I was hearing.
First: there is nothing "Automatic" about becoming a millionaire. Even the laziest person has to look at a financial statement or rebalance their retirement accounts once a year. According to The Millionaire Next Door wealthy people pay attention to their financial statements and consistently engage in certain behaviors that lead to wealth.
Second: your house is not an asset, therefore it is better to use the money that would go for extra payments (to pay down principle according to Bach) to buy a rental property to generate cashflow.
Third: Latte Factors are nice, it was in this book that he coined the phrase, but the Latte Factor is just a catch phrase that obscures the need for greater financial literacy and sound long term financial habits. That phrase has left people cutting out their goodies rather than looking holistically at their financial picture.
Automatic Millionaire was written during boom times when the market was supposed to always go up.
Here is the litmus test for financial advice. If the bottom falls out of the market or the basic assumptions of the book (that real estate prices will always go up, for example) are not true, is the advice still good?
The answer is no...so I would recommend a pass on the book.