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The Automatic Millionaire, Expanded and Updated: A Powerful One-Step Plan to Live and Finish Rich Paperback – December 27, 2016

4.7 out of 5 stars 3,422 ratings

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#1 NEW YORK TIMES, WALL STREET JOURNAL, USA TODAY, AND BUSINESSWEEK BESTSELLER—OVER 1.5 MILLION COPIES SOLD!

David Bach’s no-budget, no-discipline, no-nonsense system to help you finish rich automatically, now expanded and updated

Do you want to live rich and retire richer? Rich enough to do what you want when you want to do it? Rich enough to stop worrying about money? Rich enough to make a difference and help others?
 
With
The Automatic Millionaire, David Bach presents an easy, realistic system, based on timeless principles, with everything you need to know so you can put the secret to becoming an Automatic Millionaire in place from the comfort of your own home. All you have to do is follow his one-step program to financial security—the rest is automatic!
 
This edition includes updated information on taxes, investments, technologies, and apps to automate your financial life as well as Bach’s latest systems for making the entire process even easier.
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Editorial Reviews

About the Author

David Bach is the author of ten consecutive New York Times bestsellers, including Start Late, Finish Rich; Smart Women Finish Rich; and Smart Couples Finish Rich. The Automatic Millionaire was a runaway hit when it was first published in 2004, spending thirty-one weeks on the New York Times bestseller list and appearing at number one simultaneously on the New York Times, USA Today, BusinessWeek, and Wall Street Journal business bestseller lists. Bach has appeared more than one hundred times on NBC's Today show to share his strategies for living and finishing rich. His FinishRich seminars are the leading financial seminars in North America. He lives in New York with his family.

Excerpt. © Reprinted by permission. All rights reserved.

CHAPTER ONE

Meeting the Automatic Millionaire

I’ll never forget when I met my first Automatic Millionaire. I was in my ­mid-­twenties and was teaching an investment class at a local ­adult-­education program. Jim McIntyre, a ­middle-­aged middle manager for a local utility company, was one of my students. He and I ­hadn’t spoken much until one day when he came up after class to ask if he could make an appointment with me to review his and his ­wife’s financial situation.

The request surprised me. Though I felt strongly (and still do) that just about everyone can benefit from the advice of a qualified financial planner, Jim ­didn’t strike me as the type who would seek it out.

I told him I’d be happy to set up a meeting, but if he wanted my help, his wife would have to come too, as my group managed money only for couples who worked on their finances together.

Jim smiled. “No problem,” he said. “Sue’s the reason I’m here. She took your Smart Women Finish Rich seminar and told me I should sign up for your course. I’ve liked what you’ve had to say, and we both figure it’s time to do some financial planning. You see, I’m planning to retire next month.”

Now I was really surprised. I ­didn’t say anything, but as I looked Jim up and down, I doubted he could be in a position to retire. From the few comments he had made in class, I knew he was in his early fifties and had worked for the same company for thirty years, never earning much more than $40,000 a year, and ­didn’t believe in budgets. I also knew that he considered himself to be “ultraconservative,” so I figured he ­couldn’t have made a fortune in the stock market.

My Grandma Rose Bach had taught me never to judge a book by its cover. But something ­didn’t add up. Maybe Jim had just inherited a lot of money. For his sake, I hoped so.

“WHAT AM I MISSING HERE?”

When the McIntyres came into my office a few days later, they looked exactly like what they were: hardworking, “average Joe” Americans. What has stuck in my mind about Jim is that he was wearing a ­short-­sleeved dress shirt with a plastic pocket protector in his breast pocket. His wife, Sue, had a little more flair, with some seriously blond highlights. She was a beautician, a couple of years younger than Jim.

The thing was, they ­didn’t act like ­middle-­aged people. They were holding hands like two high school kids on a first date, bubbling with excitement. Before I could ask how I could help them, Jim started talking about his plans and what he would do with his free time. As he did, Sue kept exclaiming, “Isn’t it great he can retire so young! Most people can’t retire until they reach ­sixty-­five if then, and ­here’s Jim able to do it at ­fifty-­two!”

“LET’S NOT GET AHEAD OF OURSELVES.”

After a few minutes of this, I had to interrupt. “Guys, your enthusiasm is contagious, but let’s not get ahead of ourselves here. I’ve met with literally hundreds of potential retirees over the last few years, and I have to tell ­you—­hardly any of them have been able to retire in their early fifties.” I looked Jim in the eye. “Usually people come to my office to find out if they can retire,” I said. “You already seem to be sure you can. What makes you so certain you can afford to?”

Jim and Sue exchanged a look. Then Jim turned back to me. “You don’t think we’re rich enough,” he said, “do you?” The way Jim put it, it ­wasn’t exactly a question.

“Well, ­that’s not the way I would have phrased it,” I replied, “but yes, it takes a fair amount of money to fund an early retirement, and most people your age ­aren’t even close to having saved enough. Knowing what I do about your background, I’m truthfully curious about how you could possibly have enough money.” I looked him in the eye. He gazed back at me serenely.

“Jim, you’re only ­fifty-­two.” I said. “Considering that only about one in ten people can barely afford to retire at age ­sixty-­five with a lifestyle equal to what they had when they worked, you have to admit that retiring at your age with your income would be a pretty big feat.”

Jim nodded. “Fair enough,” he said and handed me a sheaf of documents. They included his and Sue’s tax returns as well as financial statements that listed exactly what they owned and owed.

I looked first at their tax returns. The previous year, Jim and Sue had earned a total of $53,946. Not bad. Not rich, to be sure, but a decent income.

Okay, next. How much did they owe?

I scanned their financial statements. I ­couldn’t find any outstanding debts listed. “Hmm,” I said, raising an eyebrow. “You have no debt?”

“THE MCINTYRES DON’T DO DEBT.”

They exchanged another smile, and Sue squeezed Jim’s hand. “The McIntyres don’t do debt,” she said with a chuckle.

“What about your kids?” I asked.

“What about them?” Jim answered. “They’re both out of college, on their own, and God bless ’em.”

“Well, all right then,” I said, “let’s see what you own.” I turned back to the financial statement. There were two homes listed: the house where they lived (valued at $450,000) and a rental property (a second house valued at $325,000).

“Wow,” I said. “Two houses and no mortgage on either?”

“Nope,” Jim replied. “No mortgage.”

Next came the retirement accounts. Jim’s 401(k) balance currently amounted to $610,000. And there was more. Sue had two retirement accounts of her own that totaled $72,000. In addition, they owned $160,000 in municipal bonds and had $62,500 in cash in a bank savings account.

Talk about a substantial asset base. Add in some personal property (including a boat and three ­cars—­all fully paid for) and they had a net worth approaching $2 million!

By any standard, the McIntyres were rich. It ­wasn’t simply that they owned a lot of assets free and clear (though that in itself was pretty impressive); they also had a continuing stream of income in the form of interest and dividends from their investments and $26,000 a year in rent generated by their second house. On top of that, Jim had qualified for a small pension, and Sue liked being a beautician so much that she planned to keep working until she was sixty (even though she ­didn’t need to). Suddenly, Jim’s plan to retire at ­fifty-­two ­didn’t seem so crazy. In fact, it was completely realistic. More than ­realistic—­it was exciting!

“WE INHERITED KNOWLEDGE.”

Normally, I don’t get ­wide-­eyed about people’s wealth. But there was something about the McIntyres that impressed me. They ­didn’t look rich. And they ­didn’t seem terribly special. To the contrary, they seemed perfectly ­ordinary—­your average, nice, hardworking couple. How could they have possibly amassed such wealth at such a relatively young age?

To put it mildly, I was confused. But I was also hooked. I was in my ­mid-­twenties at the time, and even though I was making good money, I was still basically living paycheck to paycheck. Some months I did manage to save a little, but more often than not I’d get busy or spend too much the next month and not save a dime. Many months it seemed that instead of getting ahead, I was falling behind, working harder and harder to make ends meet.

It was embarrassing, really, and frustrating. Here I was, a financial advisor teaching others how to invest, and I was often struggling myself. Even worse, here were the McIntyres, who probably in their best year barely made half of what I was making, and yet they were millionaires, while I was falling further and further into debt.

Clearly, they knew something about taking action with their money that I needed to learn. And I was determined to find out what it was. How could such regular people have amassed such wealth? Eager to know their secret but not knowing where to begin, I finally asked them, “Did you inherit any of this?”

Jim broke out in a deep belly laugh. “Inherit?” he repeated, shaking his head. “The only thing we inherited was knowledge. Our parents taught us a few commonsense rules about handling money. We just did what they said, and sure enough it worked. The same is true for a lot of people we know. In fact, in our neighborhood, about half our friends are going to retire this year, and many of them are even better off then we are.”

At this point, I was hooked. The McIntyres had come to interview me about how I could help them, but now I wanted to interview them.

Product details

  • Publisher ‏ : ‎ Crown Currency
  • Publication date ‏ : ‎ December 27, 2016
  • Edition ‏ : ‎ Expanded,Updated
  • Language ‏ : ‎ English
  • Print length ‏ : ‎ 288 pages
  • ISBN-10 ‏ : ‎ 0451499085
  • ISBN-13 ‏ : ‎ 978-0451499080
  • Item Weight ‏ : ‎ 2.31 pounds
  • Dimensions ‏ : ‎ 5.2 x 0.65 x 8 inches
  • Customer Reviews:
    4.7 out of 5 stars 3,422 ratings

About the author

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David Bach
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David Bach has helped millions of people around the world take action to live and finish rich. He is one of the most popular and prolific financial authors of our time with 10 consecutive New York Times bestsellers, including two consecutive #1 New York Times bestsellers, Start Late, Finish Rich and The Automatic Millionaire as well as the national and international bestsellers Fight for Your Money, Go Green, Live Rich, The Automatic Millionaire Homeowner, Smart Women Finish Rich, Smart Couples Finish Rich, The Finish Rich Workbook and The Automatic Millionaire Workbook, Start Over Finish Rich and Debt Free For Life. Bach carries the unique distinction of having had four of his books appear simultaneously on the Wall Street Journal, BusinessWeek, and USA Today bestseller lists. In addition, four of Bach's books were named to USA Today's Best Sellers of the Year list for 2004. In all, his FinishRich Books have been published in more than 19 languages, with more than seven million copies in print worldwide.

Bach's breakout book The Automatic Millionaire was the #1 Business book of 2004, according to Business Week. It spent thirty one weeks on the New York Times bestseller list and was simultaneously number one on the bestseller lists of the New York Times, Business Week, USA Today, and The Wall Street Journal. With over a 1.7 million copies in print, this simple powerful book has been translated into 12 languages and has inspired thousands around the world to save money automatically. His most recent National and International bestseller - The Latte Factor, Why You Don't Have To Be Rich To Live Rich was an instant New York Times, USA Today, Wall Street Journal, Publishers Weekly, Toronto Star, bestseller - and has already been translated into eleven languages.

Bach's also recently updated The Automatic Millionaire (2017) and his #1 National bestseller Smart Couples Finish Rich (2018) and Smart Women Finish Rich (2019).

Bach is regularly featured in the media. He has appeared six times on The Oprah Winfrey Show to share his strategies for living and finishing rich along with regular appearances on NBC's Today and Weekend Today shows, CNN's Larry King Live, ABC's Live with Regis and Kelly, The View, CBS's Early Show, ABC News, Fox News, and CNBC. He has been profiled in many major publications, including The New York Times, BusinessWeek, USA Today, People, Reader's Digest, Time, Financial Times, the Washington Post, The Wall Street Journal, Los Angeles Times, San Francisco Chronicle, Working Woman, Glamour, Family Circle, and Redbook. He has been a contributor to Redbook Magazine, Smart Money Magazine, Yahoo Finance and AOL Money. In 2009 Bach, was a regular on the Today Show Money 911 Segments and a contributor to ABC's Good Money.

David Bach is the creator of the FinishRich® Seminar series, which highlights his quick and easy-to-follow financial strategies. In the last two decades, more than half a million people have learned how to take financial action to live a life in line with their values by attending his Smart Women Finish Rich®, Smart Couples Finish Rich® , and Find The Money Seminars, which have been taught in more than 2,000 cities throughout North America by thousands of financial advisors. His most recent national seminar is Smart Women, Smart Retirement and being taught nationally.

A renowned motivational and financial speaker, Bach regularly presents seminars for and delivers keynote addresses to the world's leading financial service firms, Fortune 500 companies, universities, and national conferences. He is the founder and Chairman of FinishRich Media, a company dedicated to revolutionizing the way people learn about money. Prior to founding FinishRich Media, he was a senior vice president of Morgan Stanley and a partner of The Bach Group, which during his tenure (1993 to 2001) managed more than half a billion dollars for individual investors. Today, Bach is the Co-Founder of AE Wealth Management, a registered investment advisor and the Director of Advisor and Investor Education. AE Wealth Management has been recognized as one of the countries fastest growing RIA's.

David Bach now lives in Florence, Italy with his family. Please visit his web site at http://www.DavidBach.com

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Customers find the book helpful in understanding how to build wealth, with one noting it changes their financial mindset. Moreover, the content is simple to understand and implement, making it a must-read for everyone, including high school students as a great gift. Additionally, they appreciate its effectiveness, with one customer highlighting the power of compounding, while another mentions how it removes the intimidation factor around saving and investing.

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164 customers mention "Information quality"156 positive8 negative

Customers find the book informative and helpful in understanding how to build wealth, with one customer noting it changes their financial mindset and another mentioning it teaches basic steps to financial independence.

"...This is a wonderful book containing a wealth of financial insight. I highly recommend this book." Read more

"...retirement planning, I found the book to be very informative, reminding me of things that I had never done and forgotten or known but not implemented..." Read more

"I must say this book has literally changed my way of thinking which will also change my life...." Read more

"...These are all fundamental in wealth building and this book does a great job in each chapter of breaking it down in such a way that the common man or..." Read more

154 customers mention "Readability"154 positive0 negative

Customers find the book highly readable, describing it as a must-read that is particularly important for both adults and children.

"...This is a wonderful book containing a wealth of financial insight. I highly recommend this book." Read more

"...Quick read that is interesting and informative with simple ideas that anybody can use!" Read more

"...are all fundamental in wealth building and this book does a great job in each chapter of breaking it down in such a way that the common man or woman..." Read more

"This is a great book to read and get ideas on how to set yourself up for financial success in retirement. I wish I had read this in my 20's...." Read more

94 customers mention "Ease of understanding"94 positive0 negative

Customers find the book easy to understand and implement, appreciating its plain English style and common sense approach.

"...Quick read that is interesting and informative with simple ideas that anybody can use!" Read more

"...It's very straightforward with PRACTICAL tips that one can start right away... No fluff!..." Read more

"The Automatic Millionaire is a quick easy read and in plain language that anyone not financial savvy can understand...." Read more

"...Through some very simple story telling and avoidance of complex math and explanations, it just gives you the simple truths about investing a good..." Read more

28 customers mention "Savings strategy"28 positive0 negative

Customers appreciate the book's savings strategy, with one customer noting how it removes the intimidation factor around saving and investing, while another mentions how it simplifies the overwhelming aspects of saving.

"...It helped me to revise and improve my plan by deliberately targeting increasing my savings and paying down my mortgage more quickly...." Read more

"...you should invest in, but gives you the steps to take to secure your financial freedom. It is an easy straight forward read...." Read more

"The book premise is simple - if you invest early into your retirement fund and continue to allow the fund to grow, you will eventually be a..." Read more

"...This book helped me realized the power of automation...." Read more

14 customers mention "Gift value"14 positive0 negative

Customers find the book makes a great gift, particularly for high school students, with one mentioning it was purchased for multiple family members.

"Great gift for my young clients" Read more

"...I think it makes a great gift for any high school student as it teaches the importance of saving early on and making smart investment choices." Read more

"...As the content is simple, it can also be a great book as a gift for teenagers." Read more

"...Perfect gift for young ones just starting out on their own, they don’t teach this stuff in school like they should" Read more

11 customers mention "Effectiveness"8 positive3 negative

Customers find the book effective and powerful, with one mentioning its simple plan and another highlighting the power of compounding.

"...The author gives many examples and scenarios so it will work for EVERYONE...." Read more

"...for excuses to chip in and that is what makes the idea of this book powerful and effective, IF applied." Read more

"...gas, food, you name it, many of the ideas spouted in this book aren’t terribly effective...." Read more

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Top reviews from the United States

  • Reviewed in the United States on January 26, 2025
    I first read the Automatic Millionaire in 2007. I immediately made changes according to the common sense advice given in the book— such as setting up bi-weekly mortgage payments. I saw it again in 2025— Kindle format. I purchased it and re-read it. For the most part my wife & I been doing everything right. But in reconnecting with the book I found that there are a few more improvements that we can make. So, we’re in the process of making those changes for a more secure financial future. This is a wonderful book containing a wealth of financial insight. I highly recommend this book.
    7 people found this helpful
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  • Reviewed in the United States on March 12, 2023
    Being about 5-7 years from retirement (hopefully) I wasn’t sure if this book would have much value to me. While I consider myself to be fairly informed on basic savings and retirement planning, I found the book to be very informative, reminding me of things that I had never done and forgotten or known but not implemented. It helped me to revise and improve my plan by deliberately targeting increasing my savings and paying down my mortgage more quickly. I have gotten a copy of the book for my daughter and am recommending it to family members and anybody else looking to improve their retirement strategy and become an automatic millionaire. Quick read that is interesting and informative with simple ideas that anybody can use!
    26 people found this helpful
    Report
  • Reviewed in the United States on September 4, 2024
    I must say this book has literally changed my way of thinking which will also change my life. It's very straightforward with PRACTICAL tips that one can start right away... No fluff!

    Never know and then you come across valuable information that you would want to share with your loved ones to make sure that they know it too. Well this is exactly what this book does.

    This is information that is not taught in school. Go get it and after you read it gift copies to the ones you love and I promise you your lives will never be the same.
    7 people found this helpful
    Report
  • Reviewed in the United States on February 18, 2021
    In my opinion, if a personal finance book is going to really have quality knowledge I think its got to have the core principles. Pay yourself first, get out of debt, emergency fund, retirement, etc. These are all fundamental in wealth building and this book does a great job in each chapter of breaking it down in such a way that the common man or woman with their daily lifestyle can adapt to and incorporate. While like other books it does seem to get repetitive and I often think to myself, "Oh great! Another Dave Ramsey or Robert Kiyosaki telling me the same thing blah blah blah" this one stands out because the entire premise of the book is to make everything automatic. Direct deposit a portion of your pay to your retirement, set it up so that when you give up budgeting on the 3rd month or week because lets be honest we all do, you will still be saving money that is out of sight and out of mind. While portions of the book may be repeated knowledge to some, it is an eye opener for others, at 25 yrs old I am happy to be learning these lessons now as opposed to during the next recession. Growing up in an area where in 08' seemed like every kids parent's were losing their jobs (my parents as well) it really is a scary thought thinking back to that time. Fear is what it took me to start reading financial books and this one I will throw up there with the top of them, especially in the 21st century. Read this book, you will think a lot, you will be anxious but motivated, but most of all you will be educated, and you will thank yourself later.
    17 people found this helpful
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  • Reviewed in the United States on October 6, 2024
    This is a great book to read and get ideas on how to set yourself up for financial success in retirement. I wish I had read this in my 20's. This book was recommended by a Youtuber "Financial Tortoise".
    6 people found this helpful
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  • Reviewed in the United States on December 19, 2023
    The Automatic Millionaire is a quick easy read and in plain language that anyone not financial savvy can understand. I purchased it years ago when it was first published and use it anytime I need financial advice. Each chapter covers different financial basics from clearing debt to buying a home to retirement planning. I’m a slightly above minimum wage worker but it helped me realize my biggest goal, buying my own home, it explained step by step every part of the buying detail. Got me watching my credit score finally over 800. That’s my success.
    14 people found this helpful
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  • Reviewed in the United States on July 14, 2018
    Recently I have been enjoying reading books on saving and investing (I know, super lame lol). However this book was unlike any other book I have ever read. It hooked me immediately by making it very personal about a couple I could only hope to envision was my wife and myself in 20 years. Through some very simple story telling and avoidance of complex math and explanations, it just gives you the simple truths about investing a good portion of your wages and living below your means. I am sure many people will say “duh” at the concepts in this book on how you should put aside a percentage of your money for your future self. However this book tells the story through a couple that provides hope that you can do it yourself, which is very motivating. Read the book. You will see that you can also be successful if you make the right choices. This book was so motivating that I finished it in 3 days. I frequently get bored reading, but I couldn’t put this down.

    Key Concepts:
    Invest 10-20% of your wages for retirement before your take home pay. You won’t miss it.
    Avoid silly debt like expensive cars and things that you might think impresses people. Nobody truly cares.
    Live below your means and let the difference create wealth.

    I hope the emotional effect this book had on me can work on you, and give you the motivation you need to take action to automate your finances. It is so simple anyone can do it.
    70 people found this helpful
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Top reviews from other countries

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  • Marco
    5.0 out of 5 stars A pillar to learn on money
    Reviewed in Italy on November 9, 2023
    Nice book to read for a general understanding on the money world
  • E.K.
    3.0 out of 5 stars Interessante Erkenntnisse
    Reviewed in Germany on January 24, 2021
    Was unterscheidet dieses "Finanzbuch" von anderen? Es wird erstmals einem vor Augen geführt wieviel Lebenszeit man für die Arbeit verwendet und welchen Teil davon man für sich selbst arbeitet. Dabei sollte man mindestens 1h am Tag für SICH arbeiten, d.h. dieses Geld sollte man für sich auf die Seite legen. Und so gesehen ist man wesentlich motivierter zu "sparen" bzw. zu investieren!
    Kontra: Der Vorschlag "man soll ein Haus/Immobilie für den Eigenbedarf kaufen um reich zu werden" halte ich für falsch. Siehe hierzu auch Ausführungen von Dr.Gerd Kommer in "Souverän investieren": Warum der eigene Immobilienkauf keine clevere Investition ist.
    Report
  • Amazon Customer
    3.0 out of 5 stars Boas ideias, algumas só possíveis nos EUA, os princípios por trás das ideias valem no mundo inteiro
    Reviewed in Spain on October 1, 2021
    O livro é fácil de ler e dispõe bastante informação que pode ajudar todas as pessoas a poupar, ou até mesmo a tornar-se financeiramente independente. Apesar de os conselhos serem bons, alguns deles não podem ser aplicados verbatim fora dos EUA, mas o princípio por trás dos mesmos pode facilmente ser aplicado de forma ajustada à realidade Europeia.
  • pollianna
    5.0 out of 5 stars excelente
    Reviewed in Brazil on June 12, 2018
    Gostei muito, muito bom o livro. recomendo fortemente. o fator café é decisivo na vida. Passa grande aprendizado.Certamente vai mudar a vida.
  • 5 star
    5.0 out of 5 stars nice
    Reviewed in India on April 1, 2025
    good