THE AUTOMATIC MILLIONAIRE ACTION STEPS DAVID BACH AUDIO

Transcription

1 THE AUTOMATIC MILLIONAIRE ACTION STEPS DAVID BACH S I M O N & S C H U S T E R AUDIO

2 ACTION STEPS FOR CHAPTER 2 Reviewing the actions we laid out in this chapter, here s what you should be doing right now to become an Automatic Millionaire. Check off each step as you accomplish it. Recognize that what matters is not how much you earn but how much you spend. Take The Latte Factor Challenge. Print out page 6 from the Automatic Millionaire Visuals File and bring it with you everywhere you go. Use it to track everything you spend. Decide right now that you can live on a little less and start to save today. Study the charts on page 4 of the Automatic Millionaire Visuals File or use The Latte Factor Calculator at to find out in seconds how much saving a few dollars a day can change your life. (The calculator is free and found in the resource center.) THEAUTOMATIC MILLIONAIRE 2

3 ACTION STEPS FOR CHAPTER 3 If you get only one message from this book, it should be this: The secret to creating lasting financial change is to decide to Pay Yourself First and then Make It Automatic. If all you do are these two things, you will never have to worry about money again. Sound simple? That s because it is. Reviewing the steps we laid out in this chapter, here s what you should be doing right now to become an Automatic Millionaire. (Once again, check off each step as you accomplish it.) Forget about budgeting. Forget about get-rich-quick schemes. Make the commitment to Pay Yourself First. Decide whether you want to be poor, middle class, or rich, and choose the right percentage to Pay Yourself First. THEAUTOMATIC MILLIONAIRE 3

4 ACTION STEPS FOR CHAPTER 4 Here s what you should be doing right now to ensure yourself a worry-free retirement. Make sure you re signed up for your retirement account at work. If you don t have a retirement plan at work, open an IRA. If you are self-employed, open a SEP IRA or a One- Person 401(k)/Profit-Sharing Plan. Decide how much you are going to contribute to your account each month (ideally, the maximum amount allowed). Decide how you want to invest your retirement contributions. Whatever type of account you open, arrange to have your contributions AUTOMATICALLY transferred into it, either through payroll deduction at work or an automatic investment plan run by the bank or brokerage firm where you ve set up your retirement account. THEAUTOMATIC MILLIONAIRE 4

5 ACTION STEPS FOR CHAPTER 5 Reviewing the steps we laid out in this chapter, here s what you should be doing right now to ensure yourself automatic financial security. Decide you re going to build an emergency cushion of cash (ideally, three months or more worth of expenses). Decide you re going to earn interest on your savings (instead of letting the banks get rich at your expense). Open a rainy day money market account or set up a rainy day account by investing in U.S. savings bonds. Make your rainy day fund AUTOMATIC and let it grow until your emergency cushion is big enough for you to feel secure. THEAUTOMATIC MILLIONAIRE 5

6 ACTION STEPS FOR CHAPTER 6 Here s what you should be doing right now to become a debt-free homeowner... automatically. If you don t already own your home, make the decision to become a homeowner. Go to and calculate how much you can afford to spend on a home. Go to and use its calculator to see how much you can save by making your mortgage payments biweekly. Decide to pay off your mortgage early by using the biweekly mortgage payment plan, or by making payments yourself and adding something extra, either each month or once a year. If you are interested in a biweekly payment plan, contact your bank and ask them if they offer such programs or can refer you to a company that does. Whatever you decide to do with your mortgage payment, MAKE IT AUTOMATIC. THEAUTOMATIC MILLIONAIRE 6

7 ACTION STEPS FOR CHAPTER 7 Reviewing the steps we laid out in this chapter, here s what you should be doing right now to get rid of your credit card debt... automatically. Stop carrying credit cards. Renegotiate your interest rates. Consolidate your debt or if that s not possible, start DOLPing your credit card accounts. Decide to devote half the money you Pay Yourself First to paying off your balance. Make It Automatic by arranging for your credit card company to debit that amount from your checking account each month. THEAUTOMATIC MILLIONAIRE 7

8 ACTION STEPS FOR CHAPTER 8 Reviewing the steps we ve laid out in this chapter, here s what you might consider doing to become an automatic tither. Decide how much of your income you want to give to charity. Pick a charity you care about, trust, and have researched. Automate your charitable donations on a monthly or biweekly basis. Decide to devote half the money you Pay Yourself First to paying off your balance. Keep track of your donations for tax purposes. THEAUTOMATIC MILLIONAIRE 8