Wednesday, 22 March 2017

Book Review: The Automatic Millionnaire

Dear visitor,

Recently, I got a chance to read The Automatic Millionaire written by David Bach. I had the Canadian edition from the library. So, it says about RRSP. Since it was actually written in 2003, there is no mention of the TFSA.

The key point is to pay yourself first. That is, moving a percentage of your paycheque immediately to the  RRSP account.

He explains with many stories how to get out of debt and how to save for retirement. The book is a good read.

Bach says to automate your savings and your debt paying. I think, by now most people knows about they can pay off the mortgage faster by choosing biweekly payments.

With the sky-high real estate prices, Canadians may not be able to have a primary residence and a rental property in the present time.

The main idea of the book is to automate your savings and spendings. Then of course, frugal living.

He also mentions about the Latte Factor. Most people interested in personal finance already knows that one. Funny thing is it is not actually about having a latte. It is about the small and regular un necessary purchases. It may be hard to tame that kind of habits. If you once check the calculations Mr.Bach explains in the book, I am sure, you want to try to avoid it.

Altogether, if you are interested in saving money and live within your means, you might already be on your way to riches.

I really enjoyed reading this book. I recommend you to read it. If you can get it from library, it is much better. You read it, you get the ideas. No need to own a copy. ( I think so)

What is your "Latte factor" if you have one? 

6 comments:

  1. Nice. I read that book too and really enjoyed it. Paying yourself first is huge and pretty easy to do.
    I don't really have a daily latte factor but if I see a burger King I'll pop by and grab a couple whopper Jr with chz heavy all. Thas probably my kryptonite atm since we don't have one in town.

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    1. Not having a daily latte factor is a good thing. May be you can reduce the visit to ATM once a month

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  2. I've always had an automatic payment to my savings account on every pay day, now "pension" day :) I've pretty much given up any latte factors that I might have had. When I worked I bought myself a coffee most days. Now of course, being at home, I make my own.

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    1. It is good to have a monthly pension from your employment. I will not have one when I retire.

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  3. It sounds like a good book. I'm not sure what my 'latte factor' is, but I'm sure I probably have one!

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