The automatic millionaire (51)
by David Bach
There’s plenty of books about how to improve how we manage money. From how to invest and what to invest in, to what you need to consider when you divorce (or get married) all the way through to some of the non financial factors you should consider when building your financial plan.
However many financially related books I’ve read often suffer from a fatal flaw…
They don’t recognise that often we’re our own worst enemies.
You see we might have the best of intentions to save for our financial futures but often if it’s even remotely difficult we don’t take action which our future selves will thank us for…so that we can satisfy ourselves today.
Interestingly whilst the ‘pay yourself first’ concept in David Bachs book isn’t particularly new, what is useful about ‘the automatic millionaire’ is the way that David recommends you automate the processes of saving.
This can be done in a number of ways including direct debits and automatic transfer. You see the authors absolutely fair point is that the less we need to think about saving the more we’ll do it and making the process of saving easy (as well as saving before we pay all our other costs) is the logical first step.
In the book David also explores how to repay debt early and what you should consider when paying down debt.
I like this book.
It’s insightful, simply written and contains straightforward easy to follow tips designed to improve your financial future.
The only challenge I had was the fact that (for some strange reason) the version of the book which I purchased was the Canadian version,so whilst I learned a decent amount about the strategies, some of the more practical steps were specific to Canada. (the lesson – ensure you get the copy of this book designed for your particular company)
However there’s plenty to learn in the automatic millionaire, particularly if you want to put in place automatic habits in your life designed to improve your financial situation.