I recently finished reading a book by David Bach called The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich. Having already read a number of Bach’s books, I was eager to cross this one off my list as well. I typically don’t post reviews, but this book was too good.
I just couldn’t resist!
David was present at the last conference I attended. I had the opportunity to meet and talk with him, and during our conversation he even asked me about Empower Your Wealth. I explained the vision behind it, emphasizing the fact that it’s never too late to hit “reset” and get on the right road to retirement. His eyes lit up! Suddenly, I felt that my reasons for starting Empower Your Wealth had been validated all over again.
It was a great moment.
Note: Before I dive into my review of The Automatic Millionaire, I want to clarify that I am not receiving any compensation for my endorsement of this book. I am reviewing it purely because it’s a fantastic read and one that I know will benefit others.
If you’re unfamiliar with David Bach or his work, you might approach this book with a certain level of skepticism. Even the title itself might cause you to raise an eyebrow. After all, it’s no secret that the market is saturated with books on finance that are filled with nothing more than gimmicks and get-rich-quick schemes.
The Automatic Millionaire is not one of those books. In fact, it’s quite the opposite.
If you’re looking for a book that will teach you how to generate a miraculous fortune overnight, this is not one of them. And if you know me, you know that I would never recommend such a book anyway!
Instead, Bach’s The Automatic Millionaire is a digestible, yet detailed, roadmap for achieving financial stability – through patience, discipline, and a little common sense.
In the opening 2 chapters, Bach sets the stage for some invaluable advice by doing a few things.
First, he introduces us to the McIntyres – a normal, middle-income couple who were able to retire early, as millionaires, by adhering to some basic principles that he elaborates on in later chapters. This family is the inspiration for his belief that anyone can become a millionaire. From there, he explains his famous “The Latte Factor®” concept, which warns us about the ramifications of wasteful tendencies.
Then, beginning with chapter 3, Bach plunges into the core material by teaching his readers how to “pay yourself first” – the idea of using pre-tax retirement accounts to put money aside even before taking care of living expenses. He takes it a step further by suggesting that one should “automate” this process by means of payroll deductions.
This lays the foundation for the handful of chapters that follow, in which David shows his readers how to make other aspects of their finances “automatic” in order to create a debt-free lifestyle. He starts with emergency savings, and moves on to homeownership, credit card payments, and tithing.
The Automatic Millionaire is a fantastic book and one that I would recommend to any of my clients, because the principles that Bach teaches are universal. They can be applied to anyone’s life, regardless of age, income, or walk of life.
You can purchase a copy of the book online at Amazon, or at your favorite local bookstore.