Essay about The Automatic Millionaire

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The Automatic Millionaire
Meet the Automatic Millionaires The book begins with the author David Bach meeting Jim McIntyre after one of his investment classes. Jim requests to meet the author to review their financial situation and the meeting is set. Mr. Bach is amazed as he looks through the McIntyre’s finances and the conversation switches from looking at their situation to asking how they’ve done what they’ve done. What the McIntyres told the author has help himself and many others through this book become automatic millionaires.
“A latte spurned is a fortune earned.” The first chapter of the book makes it sound simple enough to become an automatic millionaire, but where does one begin? David Bach tell us through story how easily
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Tithes The last chapter of this book talks about the benefit of sharing with others. The first step is figuring out what percent of your income you want to give to charity. Then, pick a reputable charity that you know and trust and make regular donations to them. Don’t forget to make the donations automatic, and keep track of them for tax purposes.
Final Thoughts I liked how simple the author made the process of making things automatic. I also like that not only does it teach financial principles but also teaches where to go for additional information. I disliked the author’s subjective view when it comes to IRAs vs. Roth IRAs. While he did a great job explaining the differences between them, in different tax environments as well as time of life of the reader a traditional IRA may be worse off for the individual. The main take away that I would like to implement is that budgets are unnecessary when you make things automatic.
My favorite quote from this book is on page 59 regarding budgeting. “This is certainly a responsible idea, but as a strategy, it goes against human nature. Even worse, it goes against the 3,000 marketing messages that bombard you every day, urging you to spend every penny you earn.” He goes on to relate a budget to a diet. Budgeting is like counting calories and tracking everything. It’s just frustrating.

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