How to Become a Millionaire Automatically
We are bombarded with images across social media of luxury cars, clothing and lifestyles, as if that is what a millionaire is. In reality, most millionaires are your regular neighbours who invested for the long term, stayed commited and lived below their means.
Best selling author, David Bach, shares exactly how to do this and why it’s so simple in his book, The Automatic Millionaire.
How Much Easier Would it be if you Could be an Automatic Millionaire?
Whether you know much about stocks or business doesn’t matter. Consistency and compound interest will get you there with enough time. Start now by putting away extra each pay into savings or your retirement fund or investing into shares.
It doesn’t matter if you only start with $5, the main thing is to start and be consistent. When you can save or invest more, do it. As your income grows, increase your savings and investments as well.
If your work or the government matches your retirement investing or offers any bonuses, take advantage of them. While you won’t be able to access them until a certain age in some cases, it is free money and can help you grow your retirement funds fast.
For many people, having the money where they can’t touch it helps a lot.
The Automatic Millionaire Book
It’s an easy read and you can implement everything he talks about quickly. Instead of being full of financial terms many don’t understand, it’s written in a way everyone can understand and enjoy. David Bach is truly passionate about helping people with their finances (we have met in person) and this comes across in his work.
When you are starting your journey to learn more about finances and want basic advice which guarantees you will eventually get where you want to be, this book is it! It is a great starting book for anyone.
How do you Automate?
Being an automatic millionaire sounds great, right? It is easy if you are patient and stick to it. Automatic Millionaires have automated their investing to ensure they retire as millionaires. It does not mean you are going to a be a millionaire tomorrow.
Look at all your expenses and how you can easily automate them through direct debit. You can do the same with saving, investing, retirement, all of it.
Arrange for your employer to add extra to your retirement fund. Set up an automatic investment plan to transfer money to shares. Have your savings taken from your wage before it even hits your bank account.
Once you have everything set up for success: retirement, investing and saving, learn to live off the rest. By living off the rest you are acting as if you have a lower wage than you actually do, enabling you to become a millionaire without trying.
Would I Recommend Reading The Automatic Millionaire?
Reading finance books can be motivating and keep your mindset on track. You know where you want to be and The Automatic Millionaire makes it easy. It is definitely a book I would recommend for beginners and anyone else looking for a little inspiration.
Most of it might seem like commonsense but as we all know, commonsense is not that common!