The Automatic Millionaire: A Powerful One Step Plan To Live And Finish Rich

ISBN: 0767921313
ISBN 13: 9780767921312
By: David Bach

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Reader's Thoughts

C.J. Graves

I'd read many other personal finance books before this one. Something you learn after a while is--they all have the same basic information in them.Pay yourself firstLive below your meansSavePut your money in the right investments for your situationyadayadayadaWhat made this book different was the "automatic" concept. Not that other books don't tell you to set up automatic payments as well, it's just not the central concept, and I believe it's a crucial component for people to understand if they want to get ahead without sabatoging themselves. Once you set up an automatic withdrawl from a bank account to be deposited automatically into an investment, well, it's hard to change that. This is a good book for those wanting to learn some simple strategies to guard against the old "money burns a whole in my pocket" excuse. I've given this book as a gift and would recommend it to my friends.


This is one of the best personal finance books I've ever read. It is simple and straightforward. Even though I'd heard much of this advice before, the simplicity of this book has inspired me in ways I haven't been before. Is it brilliantly written? no. But I found it ridiculously useful.

Raphael Aquino

Ended up almost regreting I read this book. The first few things in this book as a lot of people have said on here are good. Pay yourself first and do everything you can to get out of debt. After that the book just seems to go on and on about the same pay yourelf first theme. I'm not blaming the book or saying that the author was wrong but, I wonder how many people bought a home a few years ago after reading this book and now regret that they did? 401K's are looking more and more like social security every day and I guess "do everything slowy step by step until the day you retire" is a good commen sense tip but, the age to retire might continue to rise and this book doesn't factor in the cost of living for some people in certain parts of the country. I have a rule and it's "whatever you see the majority doing when it comes to how they spend or invest their money, it's probably best to do the opposite. This book seems to tell everyone that everything is fine when you put your money all in the same pot. It'll just be waiting for you when everything is said and done.

Erika B. (Snogging on Sunday Books)

I'll remember all your kindness when I become an automatic millionaire.

Carrie Rose

This book is based on the solid and wise financial principles of saving money and compound interest. However, despite the excellent foundation of the book, David Bach manages to say some fairly dumb things.The chapter on homeownership is the most egregious example. This book was written during what we now know was a major housing bubble, and a few years after this book was published, home prices plummeted and foreclosures soared. But in his book, David Bach proposes that you CANNOT get rich as a renter and that you must buy a home using any means possible. He actually addresses the concern that real estate might be in a bubble - and he dismisses it as false! He suggests that people can afford to spend at least 29% of their gross income on house payments (I think 29% is wiser as an upper limit, not a lower limit) and that down payments aren't really necessary. He downplays the risk of foreclosure. Of course, a lot of people were misled during the housing boom, so out of curiosity, I checked out Bach's website to see if he acknowledged his mistake. From what I could see, it looks like he's still claiming that homeownership is a necessary part of becoming rich. I don't think he should tell everyone to rent, but he's far too extreme in his push for buying homes.Bach also made some claims that I disagreed with but weren't as dramatically dumb. For example, he discourages budgets because they're unpleasant. His alternative idea is that people should just decide how much to save and have it automatically put aside, then never touch it. He claims that after a few months, you won't even notice the drop in income from setting money aside. I think this technique will work for some people, particularly people who are saving only small amounts. But people who follow all his recommendations (retirement savings, an emergency fund, mortgage payments, and charitable contributions) in the amounts he recommends will be putting aside more than half their gross incomes! I'm pretty sure they'll notice the difference. In fact, after paying taxes, these people might be struggling just to buy food and put gas in their cars. But if you figure that realistically, nobody will follow all the advice in the book immediately, Bach's ideas could work well. And anyone who did manage to save as much as Bach recommends over a length of time certainly would become rich. I just don't buy the way Bach plays up the positives and downplays the negatives, and the way he insists that his ideas (like homeownership and no budget) are the ONLY way to go.In summary, the book is like a silly infomercial for a good product.


A very easy quick read with large type. The few ideas in it are very good, pay yourself first, eliminate debt, buy a house, automate everything, the Latte Factor to help people budget, setting up an emergency, and giving charity. There is also a fair amount of information on how to get started in these ideas, but overall this book could have been condensed considerably. I think I would like to automate more than I currently do, and it has inspired me to track my spending to see where I could save more, if I’m spending too much on certain things I don’t really need. The house chapter is very worthwhile, but doesn’t apply to me now, and for now I consider my parents to be my emergency fund. I do like the chapter encouraging charity which I would like to further do. I don’t think there is enough solid information about how to allocate your assets, but this is more of a starter book to get you headed in the right way rather than a finance book.


I have read this book several times since it was published. I like its simplicity. It is 200 pages, but I took notes on the important principles and I was able to boil everything down onto one page. None of the ideas or concepts are new, but this book does give readers some insights into how one might go about putting these principles into action. This book and Dave Ramsey's Total Money Makeover are probably the best two resources in terms of 1) learning about personal finance and 2) putting a plan in place to address most folks money problems.

Andy Valen

It couldn't be any easier to save for retirement, or save in general. This truly is a one step why is the book 200 pages? Because one page books don't sell. Read this as your only David Bach book, because his other ones are just rehashing the same thing without the automatic part. The Latte Factor is interesting...if you buy a Latte from starbucks every work day for a year, you should stop. You should invest that money in an account and yield 10% interest on it annually. If you are in your 20's then this should add over a half million to your retirement (if you ignore taxes). But his point was more along the lines of, look - you spend so much moneyon crap you don't need to be spending it on...stop wasting it and start investing it.


Great book. Everything he talks about is really common sense. If you just invest 15% (give or take), you'll be well off in your retirement. The key is to automate it, so you don't 'see' how much you're 'losing'. It's very informative too, he gives you actual details on how to do what and where to go for it. I highly recommend this to people of all ages, but especially people in their 20's and 30's.


Basic information about money presented through some of the most contrived stories I've ever heard. I won't say that the information is wrong, but it isn't really groundbreaking either. The book might be aimed more at people who really are clueless about finances, because most of this is already in practice for me. Maybe I'm just ahead of the curve.


The Automatic Millionaire by David Bach is another book recommended by the financial planner Husband and I want to go see. It was an easy read and the principles he sets forth are so simple to to and keep doing. The trick is to make everything AUTOMATIC.Pay your bills automatically using a bill pay service. Pay yourself through payroll deduction so that you never see it. What you see you don't miss. How to pay your mortgage off quick and easy. How to get out of credit card debt quick and easy and still save money. He shows how investing early pays of big in the long run, bigger than if you start late and invest continuously. I wish I had read this book when I was still a teenager. Some of the things Husband and I hadn't done yet, and we have already corrected that. Some things we didn't have to worry about b/c we have no credit card debt. We do have a car loan and a lease payment, but we have a plan to get that taken care of fast. (Anybody want to buy our 69 GTO? She's a beauty!) We've decided that any future car purchases are going to be cash and only cash or otherwise it is a no go. We already have a plan in effect for paying our mortgage off early, but it reinforced to me that I was doing something right. I would recommend anybody, regardless of age and income status to read this book, it will change your life.

Anita Renaghan

This is a great book for anyone looking for a financial plan. I remember seeing David Bach on Oprah a decade ago, and his ideas are very good for practical application. If you want to retire with some cash in your pocket and before you are 70 years old, read this book, even if you are 20 years old right now. Especially if you are 20 years old right now.

Anthony Deluca

The Automatic MillionaireBy: David BachCopyright 2003Reviewed May 2008Listened to Unabridged AudiobookThe automatic millionaire is an excellent, practical book that will indeed instruct anyone how they can become a millionaire. In my subjective opinion, however, the younger one is, the easier it will be to make this work well. Also, some minimal level of income will help too. BUT, I recommend this book to EVERYONE who is not already independently wealthy.The book basically illustrates how one can mass a ton of savings in their lifetime and retire with plenty of money in the bank. This revolves around saving at least ten percent of your income… and not just manually putting it away each month, but automating the process of filling this repository of savings. A typical hard-working American couple in their early fifties is used as the example throughout this book.Techniques mentioned in the book include: The Latte Factor: Instead of spending just a few dollars each day on frivolous items, such as a $3.50 Latte, save that money. charts are given to show the mass amount of investment savings to which this can lead.; Pay yourself first: In other words make the redirection of money into your saving happen before any other redirection of funds, even taxes, occurs to your paycheck.; Make paying your self automatic: Don’t count on yourself to manually make a transfer, instead having this money redirection be automatic so you never have to think about it.; Don’t buy anything with credit other than a house: You cannot invest and save well if you are paying interest charges on non-investment items.The only thing I did not like about this book was the drawn out introduction where Bach kept saying over and over again how his plan is practical and works, but without starting to explain his plan. In conclusion, however, even with the few negatives I mentioned this is an excellent, insightful, inspiring publication that would be useful to all.

Migelle Dominic

I chose the guidebook, "The Automatic Millionaire: A Pwerful One-Step to Live and Finish Rich" by David Bach, because I'm the type of person that plans ahead for the future. To be able to predict what'll happen and to be independent, supporting myself such as being financially stable. The story includes the Mcintyres, an ordinary looking family that were actually well off into their retirement for a permanent vacation. They benefited from David's lessons to become an automatic millionaire and they are set for life while they are still in their 50's. They are only one of many, and it's many more that were impacted by David Bach to be financial wise, be richer and enjoy life worry-free. "The idea was identical. If we saved a few dollars a day, we could eventually buy our own home." It seems simple enough, but the power to be dedicated and have enough sheer will power to do so challenged me to try it and I'll be looking forward to how much I invested. It's the idea that money we spend on little things like coffee and cigarettes shouldn't be wasted and should rather be saved for a better benefit than taking in dose of essentials every now and then. The words the author used were very demanding, but also encouraging,it wasn't all too confusing and was very straight forward. The words used was leveled for young-adult readers. I would recommend this book to anyone in general, it wouldn't hurt anyone to gain money, depending how much. The point is, with the lessons learned from this book, anyone can become an automatic millionaire.


The Automatic Millionaire is a popular personal finance guide geared toward beginners that, despite having some good advice, fails to be a solid finance book due to two major issues.First, the first impression one gets is that this book reads like a late night infomercial. Had I picked this book up at a bookstore I would've put it down after reading the first few pages. I was able to make it through the book by ignoring the snazzy marketing-speak; and that's no small feat. I felt like the whole time I was being sold some sort of Ronco product, and that made me feel dirty and dishonest on Bach's behalf. That style of writing only succeeds in turning off your readers.Second, Bach misleads his readers by suggesting they forgo a planed budget. His point is that if you do a written budget you'll fail to pay yourself first. For beginning personal financiers, that is a risk of budgeting your paycheck, but there is a way around it . Bach should suggest people pay themselves first, then budget with what's left. This approach is not only more holistic, but it also teaches first-timers the importance of actually knowing where money is coming from and where it ends up.

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