The Automatic Millionaire Summary

1040 Words5 Pages
Austin Ahart
Family Finance
September 22, 2015
The Automatic Millionaire
Chapter 1.Meeting the Automatic Millionaire In this chapter it tell a story of the McIntrye family. The McIntyres, an average elderly couple in their 50’s that live an average life and make an average annual income. However the McIntyres have a net worth of nearly two million dollars. The McIntyre’s did not use a secret formula to get rich, they just tried to live within their means and to always save first. Jim and Sue explained, to a financial planner and author David Bach, how easy it was for them to reach the financial milestone they are at today. They then began to give David a few pointers that they have picked up and learned throughout the years.
Chapter 2.The
…show more content…
David Bach explains that purchasing a house is a long term buy. By renting property one is paying someone monthly to stay at their home, by doing so they are not saving the money for themselves. When one gets a house, it is important to pay the mortgage off quickly. The fastest way to pay it off is by paying biweekly instead of monthly. By paying biweekly one is able to pay off their mortgage faster. Like other investments it should be set up to be done automatically, that way it isn’t a…show more content…
Bach explains that if one already has obtained debt the first thing that needs to be done is to stop using credit cards. It is really hard to pay off debt if one keeps adding more to the debt. One can also use the “pay yourself” method and one pays 50 percent to themselves and the other 50 percent goes to paying off the debt. By doing this one can get out of debt faster.
Chapter 8.Make a Difference with Automatic Tithing This chapter teaches the concept of giving back. Giving back is a strange concept because it seems like that would make one lose more money. However, it seems that this concept really works. When one starts he or she does not have to give a lot but like all the other chapters one can start small and slowly build up. David Bach also mentions how important it is too research the charities that will be receiving ones donations, because most use less than 50 percent on the cause people try to help. Remember to keep track of the donations because they can be a write off on taxes.

Open Document