Today’s book review is on “The Automatic Millionaire” by David Bach. It goes over timeless principles on how to automate your investing, savings, and going debt free.
1. Pay Yourself First — Before you spend your check on utilities and other expenses, you should pay yourself first whether it’s 10%,15% it should go to your savings or some investment fund that you have. This is money for you in the future.
2. Make it automatic — Just like you automatically get deducted for income tax, insurance and other expenses, pay yourself first should also get deducted automatically to insure that you are constantly putting money aside for you. Talk to your employer to make your deductions automatic.
3. The Latte Factor — $5 (average cost of a latte and a muffin) X 7 days = $35 a week = approx. $150 a month. This is money that could be invested. Everyone has little daily expenses that can be cut and invested, go over yours.
That is pretty much the main principles I got from the book. If you want to learn more then check out the book at http://davidbach.com/
Till next time!