Facebook Pixel Code

The Automatic Millionaire

This is a preview of the 3-page document
Read full text

 “The Automatic Millionaire” MEETING THE AUTOMATIC MILLIONAIRE In the first chapter, Bach introduces his readers to the McIntyres. The couple’s story changed Bach’s life and taught him two key points. First, paying one’s self first is important for learning slowly how to forego other people’s financial needs and avoiding debt (Bach 17). Secondly, discipline is important for quitting destructive habits such as smoking that set an individual back. The McIntyres put away millions for retirement despite having incomes of a mere $50,000 annually each because of their discipline financial habits (Bach 23). BECOMING AN AUTOMATIC MILLIONAIRE ON JUST A FEW DOLLARS A DAY The second chapter is about how important getting rid of minor spending habits is.

This chapter revolves around what Bach calls the “Latte Factor, ” which is spurning the “Few Dollars a Day” spent on minor shopping habits into investments (Bach 33). Bach argues that when we sum up the few dollars we “waste” on minor things daily, it could reach an amount significant and worthy enough of an investment. The chapter includes demonstration of this summing and savings benefit through compound interest calculations and a chart (Bach 39, 49). LEARN TO PAY YOURSELF FIRST The third chapter of the text echoes lessons that Bach learned from the McIntyres.

According to Bach, adhering to a budget is not the ultimate way to becoming an automatic millionaire (Bach 60). Budgets limit people and human beings are creatures that prefer being in control. Paying oneself first is the best way to be in control of one’s finance. In this case, paying oneself is including a payroll deduction in the retirement pool. The chapter continues to state that working for oneself entails the number of hours vested in one’s retirement (Bach 74). NOW MAKE IT AUTOMATIC The fourth chapter is the longest in the book because Bach delves deeper into the mechanics of actually becoming a millionaire automatically.

Here, the writer argues that one needs a system that does not rely on adhering to a strict budget or being discipline about financial trends or recurring debts. The main point in this chapter is that one needs has to contract any retirement account accessible at work (Bach 81).

Bach suggests IRA and ways to find out whether Roth IRA or a conventional IRA are suitable for one’s profession, income, personal life, and future. Bach adds suggestions for how to invest these retirement pools by revealing his “Automatic Millionaire Investment Pyramids” (Bach 112). These pyramids include percentages of income set aside for aggressive growth, growth, growth and income, and bonds, and cash investments that also depend on one’s age. AUTOMATE FOR A RAINY DAY In the fifth chapter, Bach talks about the importance of setting money aside for emergencies such as loss of employment or hospital bills.

This importance, the “sleep well at night factor, ” is part of becoming an automatic millionaire since it entails uncontrollable forces (Bach 136). Chapter 5 revolves around three rules: establishing an emergency pool of funds, refraining from this pool, and putting this pool in the appropriate place (Bach 155). AUTOMATIC DEBT-FREE HOMEOWNERSHIP The sixth chapter delves into the present to introduce Bach’s readers to ways currently available to home an own while debt free. Points in this chapter are presented as steps. The first one is buying a home by visiting eloan. com to determine how much one can afford to pay on home, which is the second step.

The third step is visiting bankrate. com to calculate how much one can save by paying mortgages twice a week. The fourth step is choosing to pay the house’s mortgages by adding extra funds twice a week, month, or even year. Fifth, contacting one’s bank helps to determine whether a payment plan for twice a week is available. Lastly, irrespective of the payment plan chosen, initiating it should be automatic (Bach 188). THE AUTOMATIC DEBT-FREE LIFESTYLE Chapter seven is eliminating any credit card debt one has accumulated over the years.

The main points are getting rid of credit cards, discussing new, favorable interest rates, consolidating one’s debt, committing half the money spent on paying oneself to settle the debt, and organizing the credit card firm to deposit this amount to the savings account monthly. The last point is important for making it automatic since Bach considers credit cards a major setback (Bach 207). MAKE A DIFFERENCE WITH AUTOMATIC TITHING Lastly, the eighth chapter discusses tithing as alternative to sharing what one has managed to build over the years.

The Chapter is about giving back because the author contends that life comprises more than simply money. Sharing is a contribution to life’s meaning and becoming an automatic millionaire requires one to share (Bach 220). The chapter says tithing is the best way to share or give back. However, Bach warns that tithing is not a means of easing one’s guilt in favor of future rewards. Instead, one should view tithing as the utter joy of giving. In conclusion, I liked that the book had more material about straightening one’s financial life than mere philosophies about getting rich instantly.

At the same time, I did not enjoy how derivative the book was. Some chapters are sorely lacking in terms of having subsections of content with extremely few new ideas. I plan to implement all steps and points expounded on in this book by Bach in an effort to straighten my finances and ease my professional and personal lives. My favorite quote in the text is, “Any system that is designed to control your normal human impulses is ultimately bound to fail.

That’s because humans don’t want to be controlled. We want to be in control” (Bach 60). Works Cited Bach, David. The Automatic Millionaire. New York: Crown Business, 2005.

This is a preview of the 3-page document
Open full text
Close ✕
Tracy Smith Editor&Proofreader
Expert in: Finance & Accounting, Business, E-Commerce
Hire an Editor
Matt Hamilton Writer
Expert in: Finance & Accounting, Macro & Microeconomics, Management
Hire a Writer
preview essay on The Automatic Millionaire
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
WE CAN HELP TO FIND AN ESSAYDidn't find an essay?

Please type your essay title, choose your document type, enter your email and we send you essay samples

Contact Us