When It Comes to Your Finances, Everything Should Be Automatic

I would like to share with you the knowledge I got from David Bach’s book entitled “The Automatic Millionaire“. I learned that in order for us to be rich and have millions in our retirement years, the only thing we should do is to make our cash flow automatic. What I mean by this is before you get your salary from your bank account, it should automatically transfer a certain amount that you set once into your other account that is made for that purpose. In that way, you will never get a chance to withdraw or feel guilt to spend all your money because you’ve already saved money in the first place. That principle is called “Pay Yourself First“.It’s not just about saving money, but it can be used to automate your investing and paying monthly bills as well. Actually, while reading the said book, my body acted on its own and did what the book told me. I started setting things up once and let the system do their tasks. For example, my employer always pays me a monthly salary for the work I do in my ATM account. What I did to make everything automatic is to go to the bank’s website and setup the automatic saving twice a month and transferring the accumulated amount to my investing fund in stocks. That will surely save me lots of time. I don’t need to do it manually because I value my time. Also, automating the paying of bills will never require me anymore to fall in line in the bank just to settle my obligations.

Everything can be done through the internet as long as you have a computer at home and have a very fast internet connection. The only thing you must ensure if you decided to do this is to have enough funds or cash in your ATM. Why? So that it would not break the flow of your setup system. That’s it!

But let me warn you that it’s not about how much you make, but it’s how much you save; and it’s not about how much you earn, but it’s how much you spend that matters. Watch out for your small spending every day because if you added them up, you’ll be surprised on the huge amount. It is called latte factor according to the book. If you want to know more about that, you can order it from amazon. Get your copy and I’m sure you will thank me for introducing that wonderful book to you.


Again, before I end this post, I would like to repeat this to you: If you want to be rich, make your finances automatic.

I hope you like it. Feel free to leave your message in the comment section below.

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