The Automatic Millionaire – A Powerful One-Step Plan to Live and Finish Rich by David Bach was a quick and easy read, focusing on all things money.
They begin with the concept of the Latte Factor… spending $5.00 on a drink (often more) doesn’t seem like much, but if you do it every day for years, it adds up REALLY quick. Add in a breakfast sandwich, going out to lunch or dinner instead of eating in… your daily expenses will add up quick, and your money will disappear to non-essentials. So the first thing covered is learning what your “Latte Factor” is, and fin
David covers many topics… emergency savings, retirement accounts, mortgages, credit card debt, etc., and pushes automating everything to take the responsibility out of it. When we think of saving $50.00 a week or a month, many people’s first thought is “I don’t have $50.00 to spare“, but if that $50.00 is automatically applied, we don’t miss it, because we never saw it. Get it?
After reading this book, I have some changes to make to my retirement account, and I’ve already modified the way I pay my mortgages. My favorite thing was something I already knew about, but David made it so simplistic: true bi-weekly mortgage payments. I called my mortgage holder, and learned they do not offer TRUE bi-weekly payment plans, but if they did, I would have the opportunity to save a bundle on interest. Instead, I opted to switch to a less effective but still automated bi-weekly automated payment, and I’m paying a little extra on my principle. Ultimately, I will save $20,000.00 in interest simply from the extra principle payments. My other mortgage will soon be on the True Bi-Weekly Plan, and I’m super excited about it!!
Give this book a read if you haven’t already. You’ll be through it quick and the application of the techniques are straight forward. It’s one of those overall topics that you probably already know about, but haven’t applied. It will inspire you, because it’s so so easy.