 The automatic millionaire is a book written by David Bach who was formally a finanial advisor. Basically, the book promises you to show you how you can become a millionaire automatically ( before you’re 65 lol ). I’ve listened to the audiobook and now I’m going to tell you what I think and if you should get it or not. What is the book about ?The book talks about 4 main ideas : The latte factor : I really liked this idea. You know when you read some books about personal finance and you find yourself saying “I don’t have enough money to save. I’m already broke” ? Well, Bach will challenge you on this idea. The latte factor means that some minor stuff you buy daily, like an expensive cup of latte can add up over the years to become a huge sum of money that you could have saved and invested to expand your wealth. He gives you amazing examples of how such a small insignificant thing you buy daily can greatly affect your ability to become wealthy and how you can use low alternatives instead to save money than let it grow using the compound effect. Pay yourself first : The idea is simple : you should deduct a small percentage of your monthly income before tax. The book shows you how you can do that with the 401k plan and similar services even if you’re self-employed. Basically, you’ll learn how you can start saving money before taxes so that you don’t need a budget since you’ve already deducted the amount of money needed. How to buy a home and pay the mortgage earlier : The basic idea is that you should really own a home and not rent because if you do the math, the amount of money you’re paying every month to rent a place could easily be directed towards a mortgage of a home that you bought. So once you own a home, its value increases and you’ll no longer have to pay a rent. The author also shows you how you can buy a home with just about 20% of its price, and then pay the rest over thirty years and also how you can decrease that period with a simple action. How to automate the process : The cool thing about this book is that it’s really automated. Once you set up the system, you can forget about it. You’ll learn how you can automate the process of paying yourself first, paying your mortgage, and even giving money to charity on autopilot. Once you set up the plan, it will automatically continue to work for you. What’s good about the book :Well, there’s a bunch of things I appreciate in this book. First, it has really detailed and very practical instructions for you to take so when you read or listen to it, you really know what you should do next. It has action steps for you to take. It’s also full of useful resources and websites for you to find the right service to help you automate the process. David bach makes it a point to really give you all the information and make the process really easy. The other thing I liked is that all of the process can be automated so you don’t have to worry about it. What’s not so good :I think the thing that’s really missing is an actual way of making money. What do I mean ? Well, the book shows you how you can use the compound effect to make your money grow with interest. The problem with that is that it’s a slow way of making money. The book doesn’t show you a way to actively make more money like getting another job or starting a business, and I think that’s really one of the main reasons anyone would want to read a book like this. Basically, it doesn’t show you how to increase your income. Who is it for ?If you’re US-based, you want to buy a place and use the money you’re saving to generate even more money long-term, this book is for you. Rating :13/20 Conclusion :The automatic millionaire makes a good long-term plan for having enough money to retire earlier than the average person, but if you want to stop working in the next 5–10 years this book won’t help you.
You can buy the book from Amazon here
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