“We are all playing the money game whether we want to or not. The only question is: Are we winning?“
David Bach
What is The Automatic Millionaire?
The Automatic Millionaire takes advantage of the access created by technology, and combines it with age old wisdom to accumulate millions whilst earning a modest wage. Following are a few lessons from this book.
Lesson 1: Automate
The most important take away from this book is how incredibly easy our modern technological world has made it to automate saving a percentage of your income. Start by setting aside small amounts, even $5 dollars, into designated accounts each month, and gradually increase those amounts over time. The book tells a timeless story of a couple earning very modest wages, but over time, have accumulated enough (yes, they became millionaires) to allow them to retire as they chose.
You too can automatically transfer funding to your IRAs, brokerage accounts, bond purchases etc. Start small.
Lesson 2: Let Compounding Work For You
How does Warren Buffett make his money? He engages in Value Investing, which involves meticulously choosing a stock to invest in, and WAITING over a long period of time to cash in. In the Automatic Millionaire, David Bach suggests applying the same concept to Mutual Funds, etc. The key is to let COMPOUNDING of money work for you. The earlier you start, the better off you will be at retirement, or you may even be able to enjoy the possibility of early retirement.
Lesson 3: Debt & Leverage
The age old advise of staying away from debt, especially useless debt such as credit card debt, is reiterated in this book. When is it okay to take on debt? When you can leverage that debt! Such as with your home mortgage, where you make a relatively small down payment, and borrow the rest to purchase your home. This is actually one of the techniques mentioned by David Bach to get you into the millionaire stratosphere. Since home prices in the US have mostly gone up, his strategies will not only allow you get to outright own your home, but also to reap the benefits of capital gains . Today, there are many programs that provide favorable financing, such FHA Loans, to get you on the path of owning your home.
The Automatic Millionaire Book Review
The timeless information presented in this book is easy to understand, easy to setup, and if followed, WILL result in you becoming a millionaire. Other intriguing ideas presented in the book includes “paying yourself first”, and what that really entails, as well as “the Latte Effect.” This book is a must read if you would like to take control of your finances.
“The earlier you start. The easier it is to accumulate major wealth. Still, it’s never really too late to begin.“
David Bach
“People who have goals succeed because they know where they’re going. It’s that simple.“
Nightingale
Why Read Lead The Field?
The advice contained in this book originated over a half of a century ago, but the content is as relevant and necessary today, as it must have been to the individuals consuming it back then. The struggles you face, the internal battles that you wrestle with, are not new to mankind, and Mr. Nightingale presents practical no nonsense advice that will transform your way of thinking, and ensure your “success” as he has done for others throughout the decades.
Life Lesson #One: Decide What You Want
You can’t achieve a goal if you don’t know what what that goal is, right? The book asks you to visualize the entire world as a pyramid, and to decide which part of the pyramid you would like to be on. Once you have decided, you work on the effective ways of staying motivated until your goals come to fruition.
Life Lesson #Two: Journaling/Thinking on Paper
“Thinking” with a paper/pen also known as free style journaling is a key tool mentioned in this book as a way of distilling your thoughts. Mr. Nightingale mentions a specific way, and minimum allotted time each day, to get your thoughts out on paper and train your “thinking.”
Life Lesson #Three: Master Your Habits
You know the adage “show me what you do everyday and I will tell you who you are”? Well, a version of that! Who we become, what we achieve is all rooted in our habits. What you do consistently, grows. Think about an area in your life where you are currently thriving, once you dive a little deeper, you will realize that you consistently do certain things related to that area that has lead to achievement and satisfaction. What if you applied this same methodology to another aspect of life that you want to expand? What would happen if determined what has to be done and you do those things consistently? As Tony Robbins say “you are what you consistently do.”
Life Lesson #Four: Practice Gratitude
What is gratitude? Miriam-Webster dictionary defines gratitude as a “state of being grateful” or thankfulness. Expressing gratitude and being in a state of thankfulness for everything that happens in your life, helps you in two ways. First, it opens up your heart! Try smiling upon waking up and saying “thank you” aloud, and you’ll notice your awareness goes straight to the heart. You feel loved, and want to spread that love to whomever you come in contact with. The other effect of expressing gratitude throughout your day is a kind of snowball effect. When you express your gratitude for something positive that happens to you, then the most miraculous thing happens, more positive things come your way. Observe your day, and use gratitude to create positivity in your life.
Life Lesson #Five: Be More Effective
How do you become more effective? In the book, we learn about the importance of becoming more effective everyday. Being more effective means doing more, learning more, growing more, and of course doing so every single day.
Mr. Nightingale invites us to
Lead The Field Book Background
This book was originally published in 1968. The book originates from the Lead The Field Coaching Program which was offered as a revolutionary new way of learning on the go with the invention of the cassette player.
Where To Purchase
This timeless information is presented without any fluff, in an easy to understand, and with clear instructions to implement into your daily life. Discover the power of “thinking” and other invaluable “nuggets” of wisdom by accessing the book here.
“A person who does not read is no better than one who cannot read.“
Nightingale