The Automatic Millionaire

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In the first four chapters of The Automatic Millionaire, David Bach recounts his experience with the McIntyres, the first couple to become automatic millionaires. While most people think that becoming a millionaire requires strenuous planning, a six figure income, or an inheritance, Bach shows how easily an average middleclass person can amass wealth. Bach goes onto explain how anyone can gain financial independence and accumulate millions of dollars by setting aside small amounts of money daily.

Chapter One begins with Jim and Sue McIntyre, a middle class hardworking American couple, setting up a meeting with the author to go over their financial situation. The couple was excited about the thought of retiring in their mid 50's while most people in the United States are struggling to retire at the age of 65. David Bach seemed intrigued by the McIntyres because he could not figure out how an average American couple, like the McIntyres, could afford to retire so early. During their meeting, David Bach reviewed the McIntyres tax returns to reveal that the Jim and Sue earned a combined $53,946 the previous year. "Not bad. Not rich, to be sure but a descent income" (Bach 14). Upon further review of the McIntyres financial records, Bach discovered that they have no debts. In addition to having no debts, the McIntyres had a net worth approaching $2 million including 2 homes, a boat, 3 cars, retirement funds, bonds, and cash savings. Bach was absolutely baffled at how an average working middleclass couple could have amounted such a lofty net worth with an middleclass income. Bach asked the McIntyres how they were able to amass their lofty net worth while most people their age are still living paycheck to paycheck. The McIntyres respo...

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...erred money deposits.

The Automatic Millionaire was by far the most educational book I've read this year. This book really changed my thoughts on achieving financial independence. I felt that a six figure income was absolutely necessary in order to achieve financial independence. After reading this book, I learned that financial independence is not based how much you earn but it is based on how much you spend. This book completely changes my thoughts on saving and investing. Generally, I pay my monthly expenses first and save/invest what is left. Now, I am going to pay myself 8% every month and pay expenses with what is left. I plan to eliminate all my unnecessary expenses. I have already signed up to have my credit car bills and paycheck automatically transferred every month. This book is very easy to read and changed a lot of my thoughts on investing and savings.

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