David Bach’s New York best selling book the Automatic Millionaire has some critics right now as the question marks appear over the strategy of long term investing in a 401k plan look to fall somewhat short of the demand from the baby boomer generation who start retiring in 2011 at the rate of around 10,000 a day.
In the book the Automatic Millionaire David Bach guides anyone through a sensible, well calculated and highly applicable plan to take charge of your own personal finances for life and retire rich.
The Pay Yourself First Rule
If you have never read a personal finance book in your life up to this point then the Automatic Millionaire by David Bach is probably the most eye opening book to read first. The sequence of tried and tested rules of sensible and successful money management principles throughout this book will always play a significant part in helping people develop habits that will inevitably put them in a much better position financially than someone who goes through life never seeking excellent personal financial education.
The pay yourself first rule, hi-lighted so significantly as the primary factor in the couple who star in David Bach’s Automatic Millionaire book success formula if you take one gold nugget from the book it would be to immediately start a plan to pay yourself first.
This rule was also very key in the success of Robert Kiyosaki’s success because it is a success principle that everyone should know and apply.
Understanding The Latte Factor
The other highly underrated lesson to learn from between the covers of the Automatic Millionaire book by David Bach is what he calls the Latte Factor. Discussing people’s spending habits in live events is something David Bach excels at and he watches the audience reaction to this powerful discovery with delight every time.
The principle, which again is an all time success principle of accounting for your every expenditure, no matter how small to discover hidden amounts of your daily expenses that when added up and invested for the long term can make a huge difference to your future wealth.
For the modern day corporate worker it is often the morning cup of flavoured and sprinkled coffee from a well known Coffee Shop chain that creates of the mummers in the crowd as David entices story after story out of people at his sell out events to reveal their own Latte Factor daily spending and then reveals the potential long term return on that same money well invested.
Even if the rules of investing have become more sophisticated, the principles of sound money management remain the same. In this current economy it is wise to seek professional advice outside of the usual high street bank routes for better investing advice given the recent bank collapses. Fortunately this kind of wealth business information is available in private companies who specialise in it and thanks to the internet people just like you and I have access to it.