Voted as the #1 Favorite Financial Expert of 2011, David Bach knows a thing or two about creating your own personal financial success and independence. When asked the question “What’s the number one mistake people make with their money?” David’s response was “The number # 1 mistake that people make is that they don’t make their financial plan automatic.”
In his book The Automatic Millionaire, David teaches how to put your entire financial life on autopilot, and in today’s hectic world with busy schedules, anything that can be done without additional effort that brings peace of mind is welcome and helpful advice! In David’s book, Start Over Finish Rich, he updated The Automatic Millionaire Plan and guess what I discovered!! You can receive this book in its entirely from David’s website for FREE! Now that’s a dollar amount I can afford! Just to make sure this was the real deal I went to David Bach’s website www.finishrich.com to see for myself and sure enough within 60 seconds I was reading the book and kept reading it, engaged in its helpful advice and feeling hope for improved financial balance until I finally needed to stop reading to write this blog to tell you all about my FREE find.
So in a nutshell this is David Bach plan for automating and building your financial freedom and independence.
1- When you earn money, have it deposited automatically into your bank account.
2- Pay Yourself First! Automatically put a percentage of money (at least 10%) into a Retirement Account ie: IRA 401K
3- Automatically transfer at least 5% of your gross income into an emergency account. This is for true emergencies ONLY. You should have 6 months of expenses; ideally make it a goal to have 24 months of expenses set aside in this account.
4- Automatically transfer money into a DREAM account, for things like buying a home, or a second home, a college account, a vacation account. What ever you dream of, create an account for this.
5- If you have credit card accounts, set up automatic payments to be paid from your bank account. At a bare minimum pay the minimum payment every month on those accounts. And when should you schedule these payments? BEFORE it’s due! People are busy or sometimes out of town and they miss the bill, getting hit with $30 $40 or even $50 late fees, avoiding late fees can save you hundreds of dollars a year.
6- Pay all of your regular bills like phone, utilities, cable etc. automatically every month.
7- Charity, giving back is important to your well-being and contributes to a common need for good. Automatic contributions to charity can be made every month from your banking account.
If you think you don’t have time to set all of this automatic stuff up, David says that it takes less than an hour to get things set up allowing you to breathe with a sigh of relief knowing it is all being cared for, this sounds like an hour well spent to me. You can set up automatic payments for all of these with any major bank with Bill Pay.
All of these strategies are laid out in detail in David’s FREE book, Start Over Finish Richfound here: www.finishrich.com.
Happy Financial Success to you all in 2012!
And now… Back to reading!