The Automatic Millionaire Book I Sure Way to Riches

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Book – The Automatic Millionaire

Author – David Bach

Genre – Self-Help

Published in –2003

How much you earn has almost no bearing on whether or not you can and will build wealth.

David Bach

Suppose you have come to believe that one needs to have a high income or own a business to accumulate wealth and be financially free or live a money-worry-free life. In that case, David will bust your bubble and convince you you can be rich (Financially free) with your existing income.

David claims that even though many of us are yet to reach or live life called the American dream, it is indeed possible and within our grasp, once we open our eyes/minds and are willing to learn how to do it.

The Automatic Millionaire is the REAL GOOD NEWS, especially for employees who may have been skeptical about being financially healthy in their existing income.

About The Book

Automatic Millionaire claims to share a step-by-step plan for becoming and staying rich (Millionaire). David shares simple-to-understand and easy-to-follow steps, which can be automated over time for our financial well-being.

The Book is not about helping you become a millionaire in a few weeks, months, or even years. You’ll learn how to become a millionaire—steadily and surely—throughout your working life.

Philosophy of Automatic Millionaire

  • You don’t have to make a lot of money to be rich.
  • You don’t need discipline.
  • You don’t need to be “your boss.” (Yes, you can still get rich being an employee.)
  • Using what He calls The Latte Factor®, you can build a fortune on a few dollars daily.
  • The rich get rich (and stay that way) because they pay themselves first.
  • Homeowners get rich; renters get poor. (Yes, this is still true.)
  • Above all, you need an “automatic system” so you can’t fail.

Here are excerpts from the Book –

1) Mindset of Automatic Millionaire

David shares his experience meeting his first millionaires, who were an average working couple with a decent salary yet had more than millions in assets, investments, and a passive income stream.

He became intrigued and found out what made them rich. Here are a few ideas –

  • Looking rich v/s being rich.
  • Decide to pay yourself first.
  • Stay away from consumer debt.
  • Buy in cash, or don’t buy at all.
  • The loan is only for the home; the rest is all on cash.
paying for Coffee

2) The Latte Factor

  • David explains that we spend too much money on miscellaneous things every day, unaware of it. We can very well live without those tiny expenses, which, if put aside and invested at a conservative rate, can make us huge money over time.
  • Take note of all your expenses for a week, and you’ll realize this point. Once you do, you may consider altering your viewpoint.

3) Pay Yourself First

Piggy bank photo

Who you work for is waiting for you at home.

– The Automatic Millionaire
  • This is the bottom line. No exaggeration. No hype. If you want to be rich, you have to decide to do something that most people don’t do. And that’s to PAY YOURSELF FIRST.
  • The government uses this system as taxes, so all employed people get tax deducted from their paychecks before they even get it.
  • In the same way, you need to make it automatic. Set standing instructions for the percentage you decide to move into saving accounts before paying for other things. You will not spend money, you won’t see it.
  • You may not be able to save as much as you want presently, and that’s okay. Don’t let it demoralize you. Start with 1% and increase as you move along.

4) Build Emergency Fund

  • Cash is just like the seat belt you buckle when you get behind the wheel of your car. You don’t plan to have an accident when you go for a drive. Still, you wear your seat belt because (1) someone else could run into you, and (2) stuff happens.
  • David Shares Three Rules of Emergency Cash –
  1. Decide how big a cushion you need David suggests that to be free, you need at least three months of expense in cash reserve.

2. Don’t touch it What’s a real emergency? Be honest with yourself. You know what a real crisis is. Real trouble threatens your survival, not just your desire to be comfortable.

3. Put it in the right place Instead of keeping it in cash, David suggests we choose a money market or some instruments and let our emergency fund make us some money over and above peaceful sleep at night.

5) Debt-free Lifestyle

One of the most critical lessons in this book is that Automatic Millionaires don’t do Debt.

  • You cannot become an Automatic Millionaire if you run up credit card balances and pay only the minimum due. All you’ll accomplish doing that is making the credit card company rich while you stay poor.
  • It’s essential to be realistic about credit card debt. You are not going to be able to solve your problems overnight. Getting into trouble with credit card debt probably took a long time. And chances are it will take you a long time to get out of it.

David shares Tools to get out/stay out of Debt

  1. Stop digging A person who wants to get out of credit card debt but carries credit cards in his wallet is like an alcoholic who wants to stop drinking but carries a bottle of vodka.
  2. Renegotiate the interest rate on your Debt to ensure you get out of Debt sooner rather than later. A. check the actual rate. B. asks for a lower rate.
  3. Consolidate your Debt – Pay for the past, Pay for the future. It means you can’t effectively save for the future while carrying high-interest Debt.

6) Tithing

  • David claims that one needs to give in charity or help the less fortunate and not wait to accumulate riches.
  • Tithing is not about following tradition, trying to rid you of guilt, or hoping for some future reward. What it’s really about is giving for the sheer joy of giving.


Whether you are saving enough or deep in Debt, The Automatic Millionaire will empower you with tactics to become financially well and lead a worry-free life. I recommend you read, implement, and succeed.

You may consider following Author David Bach and his work for more ideas to improve your Financial Health here.

If you like this Book, you may also like The Millionaire Next Door.

I hope this book summary helped you in some way. Please leave a few words in the comment.

Thank you for your time.


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17 thoughts on “The Automatic Millionaire Book I Sure Way to Riches”

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