The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich

Rating: 4.0/5 Stars
Rank: 661

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 (i.e. 401(k)s, IRAs, or Roth 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

About the Author

Editorials

	Amazon.com
	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... read full editorial
	From Booklist
	When Bach writes in his introduction that "in just an hour or two I could share with you a system that would slowly but surely transform you into a millionaire," it sounds like he's peddling another one of those work-at-home... read full editorial
	Book Description
	What’s the secret to becoming a millionaire?For years people have asked David Bach, the national bestselling author of Smart Women Finish Rich, Smart Couples Finish Rich, and The Finish Rich Workbook, what’s... read full editorial

Customer Reviews

	It's too simple the reviewers say..!!!!
	(Freezing in, Alaska) July 6, 2004 - 5.0/5 stars
	All these reviewers say "This book is too obvious. It's too simple. What a rip off...wah wah wah!!" I wonder what they are boo hooing about. Shouldn't they be happy it's that simple?? But I have to wonder...why... read full review
	Nothing earth shattering, but useful
	(Grove City, OH United States) July 19, 2004 - 3.0/5 stars
	A lot of people are screaming that there is nothing really new in here. Sometimes you just have to be reminded of the basics. This is not a 7 figures in 7 days type of book. If you looking for instant wealth,... read full review
	What about normal people?
	(North Bend, WA USA) July 12, 2004 - 2.0/5 stars
	I have 2 problems with this book, otherwise it is a good tool. #1...what if you aren't in your 20's? What if you picked up this book because you are 40 and just realized that you need to do something by the time you're... read full review

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