The Automatic Millionaire

[drlove]

Just wanted to share the title of a great book I read on investing -The Automatic Millionaire by David Bach. Very well written, Bach focusses on starting RRSP's as early in your working life as possible to maximize the power of compound interest; as well as making your payments automatic so you don't notice a drop in your disposable income. Some of the stories, charts, and diagrams are truly amazing - a very captivating read. Highly recommended.

Oh, and by the way, for all of you lovely ladies, Bach has a book especially for you: Smart Women Finish Rich

Cheers

 

[danmand]

The two books are in sync: In a divorce, the RRSP is divided evenly.

 

[drlove]

The two books are in sync: In a divorce, the RRSP is divided evenly.

I believe a good pre-nup may supercede that.

 

[Vanessa Valentine]

Alexa recommended this book to me almost a year ago. After reading it, I bought another copy and sent it to my mother. I also purchased Smart Women Finish Rich. Excellent books. Motivating and inspirational!

V.

 

[sweet guy]

I always watch my "latte factor" before I know the "formal name" of this saving habit, so much so that hobbying is my "drawing in the sand".

That force me to spend time with top-notch "lady friend", the best of the best IMHO not that often as I wish.

That would also explain why I would never be a "true regular" cause I'm sooo "cheap"for both the pro and the civilians!!

 

[iam0234]

Re: Re: The Automatic Millionaire

I've read all of David Bach's books and found them to be very insightful. His theory of the latte factor was interesting as little things over the course of a day, week, or month can add up and that disposable income we spend on coffee, food can easily be saved every month. Saving just $50/month will add up by the time one decides to retire. IMO, this book is a realistic approach to managing and saving money.

Not to mention the damage the "hobby" factor can do to one's retirement income. At $250 a pop, twice a month for 30 years, it is over half a mil of retirement money out of the window at 6% annual interest.

 

[drlove]

Re: Re: Re: The Automatic Millionaire

Not to mention the damage the "hobby" factor can do to one's retirement income. At $250 a pop, twice a month for 30 years, it is over half a mil of retirement money out of the window at 6% annual interest.

I've given that some thought as well. However, if you're dating a civillian you'll still end up spending a fair amount of money maintaining your relationship.

If you get married, when you get divorced she'll get half your pre-tax dollars unless you're smart enough to figure out a way around that.

The only other option is to continue seeing SP's. The idea though, is to use discretionary income for the hobby. In other words, make sure that while you're seeing the ladies, you're still putting enough money into investments to ensure that you end up filthy rich regardless.

Living well is the best revenge.

 

[danmand]

Re: Re: Re: The Automatic Millionaire

Not to mention the damage the "hobby" factor can do to one's retirement income. At $250 a pop, twice a month for 30 years, it is over half a mil of retirement money out of the window at 6% annual interest.

Not to mention the damage of 3 times a week!

 

[drlove]

...I'm sooo "cheap"...

"Cheap" is a great word; learn to love it. After all, the less you spend, the more you have. Remember, MORE is what it's all about.

 

[Stockboy]

Another title by Bach that you could find interesting is Smart Couples Finish Rich (applies to singles as well). In this book David Bach discusses overall financial planning management.

He introduces three stages of planning that are relevant for everyone. The three stages are: The Retirement Basket, Security Basket and the Dream Basket.

I found that these concepts were so fundamental that I have taken steps in order to incorporate them into my own wealth management practice.

I would highly recommend the reading of this book.

 

[drlove]

How about economical? The word 'cheap' doesn't sound too good. LOL! I'm a cheap-skate myself. lol. I shop for all my household thing there and am always looking for sales.

Economical it is, then! btw.. where do you shop for your household things again??... think I missed something.

 

[bigandhairy]

Wealth

I just have to throw my 2 cents in

Lets say 2 people each make $2,000,000 during there working life and 1 dies and is worth $300,000 and the other dies and is worth $1 .

Which one was smarter?

 

[iam0234]

The smartest is the one who dies and is worth a minus million or two (if he can con the bank to lend him this kind of money without collateral).