A Discussion of David Bach's The Automatic Millionaire
The Automatic Millionaire by David Bach offers hands-on, practical advice for those interested in saving money. Of course, since most people are indeed interested in saving money, The Automatic Millionaire has universal appeal. The book offers no-nonsense, easy to apply, strategies aimed at saving people a million dollars, literally. While there are many books that deal with this subject, Bach's approach is different. Knowing the difficulties of maintaining a budget, Bach forgoes the harping about the importance of budgets. Instead, Bach's strategy is to make saving automatic and thus hassle and worry free. Bach's goal is to save his readers a substantial nest egg for retirement. He follows through with his promise and offers readers effective strategies to save money. Most readers will be delighted by his simple prose and useful exercises. They will walk away with the knowledge to effectively save money and begin their quest toward becoming automatic millionaires.
Bach, a financial advisor, found himself in a difficult financial situation. Living paycheck to paycheck, he encountered the McIntyres and that experience changed his whole outlook on saving money. The McIntyres would be your average middle class couple with middle class salaries. Yet to Bach's surprise, "they had a net worth approaching 2 million (Bach, 15)." In addition, with this nest egg, would be able to retire at an n earlier age. Intrigued, Bach asked precisely how they were able to amass such a substantial nest egg.
The one lesson that he learned from his encounter with the McIntyres was to make saving automatic (Bach, 28). Literally, that means to take financial spending decisions out of your own hands and into the bank's. This way, budgets won't be overturned and stress levels go down. The secret to the McIntyres success was that they set up an automated system of directly transferring a ...