The Automatic Millionaire by David Bach basically focuses on two aspects. The first aspect tells of a person considering to pay himself through making automatic contributions to the retirement accounts and other primary investments before anchoring the thoughts of living expenses. David Bach then goes further to illustrate in the book about the power of using compound interest to depict how small personal payments can thrive or grow to millions of dollars within a short span of time (Bach, 1). The explained makes real the title of the book considering the framework it outlines on the particular plans which should be taken by a person to become an automatic millionaire. The first section of the book as noted in the earlier section explains in details the value of considering to pay oneself. The concept appears simple, but most people find difficulty in banking on it or even considering the time frame for making a trial or it to appear longer (Bach, 3). Bach explains that the primary argument behind the concept is on saving some amount of money whose interest is compounded. He gives an example of about $ 10 per month which after one year will realize a total of about 1.66 million.
Bach also considers the difficulty that concerns the pay yourself concept and therefore, recognize the introduction of the latter factor which lay focus on the tiny expenditures that people make every day without having a second thought. In most cases, such kind of expenses is referred to as the daily purchase (DeMarco, 5). He gave an example of the latter factor through the demonstration of his case when he started his professional life. After giving his case and showing how the latter factor negatively affected him, he concludes by saying that cutting out the latter factor even if it means partially and directing the money to other investment where it gets compounded every month, the accumulation will be able to justify the book title within the shortest time possible. The second part of the book concerns the making of automatic pay concept. The aspect looks at the financial life and how emergency funds can be built as well as not keeping any debt (Hallam, 7). It also refers to the establishment of the automatic deduction from making checks on account either on weekly or monthly intervals in every account depending on the arrangements of an individual.
In most cases, the concept gets referred to as the psychological power. Bach also goes ahead to explain that whenever there is money in the account, the budget reflects what is left after paying yourself. It, therefore, means that the point depicts the genesis of ones budget. If the mentioned is repeatedly done, it will end up becoming a norm and the money kept in the account will be compounded to huge interest within a short period (Tardy, 10). The concept, however, simpler is carried to places by Bach since it advocates for the establishment of a situation that involves mortgage handling and the payments made in weeks instead, of months to allow the making of automatic payments every year (Town, 7).
In conclusion, the financial guide primarily explains the strategy of accumulating wealth in the most affordable means that favors every person. It also helps in the solving the human emotional behavior of meeting immediate wants which may prevent them from making savings and considering long-term investments.
Bach, David. Debt-free for Life: The Finish Rich Plan for Financial Independence. Toronto: Doubleday Canada, 2010. Print.
Bach, David. Start Over, Finish Rich: 10 Steps to Get You Back on Track in 2010. New York: Broadway Books, 2009. Internet resource.
Bach, David. The Automatic Millionaire Homeowner: A Powerful Plan to Finish Rich in Real Estate. , 2009. Internet resource.
Bach, David. The Automatic Millionaire Workbook: A Personalized Plan to Live and Finish Rich. Toronto: Doubleday Canada, 2005. Print.
Bach, David. The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich. , 2016. Print.
DeMarco, M J. The Millionaire Fast lane: Crack the Code to Wealth and Live Rich for a Lifetime. Phoenix, AZ: Viperion Publishing Corporation, 2011. Print.
Hallam, Andrew. Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School. Singapore: John Wiley & Sons (Asia, 2011. Internet resource.
Hardy, Darren. The Compound Effect: Multiplying Your Success, One Simple Step at a Time. New York: Vanguard Press, 2010. Internet resource.
Tardy, Jaime. The Eventual Millionaire: How Anyone Can Be an Entrepreneur and Successfully Grow Their Startup. , 2014. Internet resource.
The town, Phil. Payback Time: Eight Steps to Outsmarting the System That Failed You and Getting Your Investments Back on Track. , 2011. Internet resource.
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