A few months ago, a friend of mine (Ben) recommended a book to me. I trust Ben's taste and took him seriously when he said that it was one of the most influential books that he had read in 2007. I made a mental note to get it and last week, while Tricia and I were down south we went to a Barnes & Nobel and picked up the "The Automatic Millionaire"by David Bach. Throughout our vacation and in the car ride, Tricia read this book to us and we finished it before we got back to MD.This book was outstanding!!!!!! I am telling you the truth when I say that it will impact your finances and your future tremendously if you read it and implement even a little bit of it.
Basically, the book walks you through the value and steps of automating your best financial decisions. It denounces budgeting, suggesting that none of us are wired to be controlled by our money, but that we would rather control it. If we will make the decision ONE TIME to save for our future, then we can automate it and never think about it again. Imagine taking the decision out of your hands every month. Instead of deciding every 30 days what you "think you can afford", you have already automated your savings out of your bank account first...even before you pay your bills...hence, paying yourself first!
If you are a "yeah butter" saying "yeah, but I barely make it now" or "yeah, but I live paycheck to paycheck" ...then Bach will speak to you!
Probably the most influential part of the book for us was identifying our "Latte Factor". This is basically how much money we waste per month x 12 plus interest if we saved it (providing you an annual savings amount). That is your "Latte Factor." You can identify yours by clicking here, but you really need to read the book to get it.
I will stop ranting now, but I am telling you, if you have ever listened to me before....read this book! With your spouse! Soon!!! If you wait to long you may cost yourselves a couple hundred thousand dollars. Tricia and I read it just in time!
Today we finished automating everything and we are feeling so good about our recent financial decisions!
Hmmmmmmm, sounds like a good birthday present to someone this year. Thanks Pastor!
ReplyDeleteUche
It is a great book. Glad you liked it.
ReplyDeleteYeah! The crazy thing about this book is that it really speaks loudest to the "doubters" and the "poor"...or so they think they are. Usually they are one because they are the other....hmmmmm
ReplyDeleteBTW- this is a "secular" book -- whatever that means. (Full of biblical principle and wisdom.)
From Hannah
ReplyDeleteYears ago in the book Letters To Peter, Charles Shedd's advice to his son Peter on finances in marriage was: "Give 10%, Save 10%, and Spend the rest with joy and gladness".
One can also give more and save more with joy and gladness as well.
Secular means worldly as opposed to Christian. Not that there's anything wrong with secular advice.
We read Money magazine and Forbes regularly.
Great quote, Hannah! I like what you wrote. Thanks for weighing in.
ReplyDeleteIncidentally, there is some great stuff on giving in this book as well.
Something like...
Give First
Save Second
Pay Bills Third
Interesting order.