Book Review: “Automatic Millionaire” by David Bach

As a practitioner of his principles on being a homeowner, I didn’t feel I got that much out of this book. This book is really for the people who’re still renting. But I did learn something about the latte factor (getting out of the habit of spending on small luxury items like latte, cable TV and etc.) or the definition thereof. The bi-weekly payment plan was not new to me but a good reminder for me to look into as I was debating it’s worth the extra processing fee. One major take-away for me is to put everything (payment, saving and etc.) in auto-pilot mode (thus the phrase “automatic”) just because most people are not disciplined enough when it comes to financial matter. This is true especially when it comes to paying bills.

Some of the ideas about taking out the equity and buying a rental property may not work very well here in California, as the house prices here are very high. You’ll need almost every penny to buy the next house if you want to upgrade at all. I also believe that the housing boom may be coming to a grinding halt, which David Bach did warn about and encourage people to be prepared for it. Perhaps, all those extraordinary housing wealth accumulated for the last few years are simply a deviation from the norm. The correction could be very painful for those who are not careful and buying into homes at their peaks.

The fact that there are some people who are simply not disciplined enough to be a homeowner; they don’t want to deal with leaky faucet or toilets and regular maintenance of the house. It’s a lot of work. Some of the renters don’t even want to pay rent on time.

Overall, this is reasonable book for someone who’s renting and don’t know how to break away from that habit and commit to being a homeowner and becoming the “automatic millionaire.”

Automatic Millionaire Book

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