The author of the book “The automatic millionaire by David Bach” says  that there are many people who visit his office, some of them look very rich but when he looks into their finances they are broken.

The author says the one day one person visited my office with a Porsche’s car and he wears a Rolex Gold watch.

When David looks into his financial situation.

• He found that his home is on loan.
• The credit card has 4 lakh bills pending.
• In the bank, he has 5 lakh left.

If this person gets an emergency health issue at any time, he has to face financial difficulties.

In David’s office, there were 2 old couples sitting named Jim and Sue who knows David from before.

David and 2 couples starting laughing at the so-called rich.

The conversation starts here:

• David then says to the so-called rich that this is Jim and he is a millionaire but he wears a 10-year-old watch.
• Then Jim told watch is not 10 it’s 18 years old.
• Then the rich person asked the couple, Jim and Sue, that “how you became a millionaire“

Sue told that if you have 15 min time, I can tell you the journey of my whole life. How we managed our money.
The rich person told I have not only 15 min I have 1 hour time to get knowledge from you.

After that Sue started telling her life story.

• I and Jim married at the age when Jim was 21 years old and I was 19 years old.
• After our honeymoon, our parents called us one day and told us we should manage our money properly.

There are 2 options:
For a Salaried life.

1. Started spending buying something.
2. Saving some portion of money from the salary.

This is apart from every monthly expense such as electricity bill, house rent, gas bill, telephone bill, etc.

1. Pay yourself first

When Jim listened to Sue’s parents talk about managing money.

• Jim told, it can be done easily.
• Sue tells that we tried to save money but we could not save anything.
• Every month some money gets spend anyhow.
• And it seems like that our salary is too less. and we started fighting.

One time Sue has so much quarrel with Jim that, Sue has called her Mom and said “we could not able to save anything“.

Sue’s Mom said budgeting doesn’t work. Your dad and I also tried the same.

The best way is to when you get your salary the 10% money should automatically move to the saving account.

• After few months you won’t know that you are saving 10% money every month.
• You will be habituated to live your life with 90% of your salary.

After this discussion, Sue tells we cannot save 10% but we started saving 4% automatically to our bank saving account.
We started thinking that saving is very hard but slowly we started saving 10% of the salary.
and told also we save 15% of the salary.

The so-called rich man asked, in which things you started saving.

First, Sue told him they started saving for retirement plans.

1. That time when working on the company, they allow us to save extra money.
2. No friend of mine took a step like this, and we took this step and we are proud and now we are millionaires.

Second, the priority is that we should save for our home.

1. Our parents tells that, the house is the best investment in their life as it brings happiness.
2. If your house is on loan, try to pay the loan as early as possible.

2.The latte factor.

Sue told her friend used to decorates her rented house, for this she brings decorative pieces and things, they spend on costly food in the restaurant.
But we are focused to pay our house loan.
The rich person told. you should not buy decorative things for our house. and not taking food outside, you paid all your house loan?
Sue told, you can think it’s correct.

Our parents told us a trick to pay our loan fast. and we implemented it.

• Suppose your loan installment is 10,000 per month.
• Not to give 10,000 at one time.
• Better to fix it to give at 5,000 and 5,000 in 15 days.
• From this, your total interest will be less. and loan time period will be less.
• If the loan period is of 20 years it will be 15 years.

We should consult your bank on how it works.

Sue also told we stopped spending on unnecessary things.

• Such as taking expensive capacirna coffee we take normal coffee.
• We stopped taking food in the restaurant and we cook same food dishes in our home.
• We put this extra money in a loan.
• During the late 30s, our home loan got finished.
• After completing home loan payment,.
• We started thinking that what to do with the installment amount we spend on the home loans.
• Should we start spending the amount?
• We thought that we will take one more house on loan and we will put old house on rent.
• Now we have 2 houses one is in rent and one newly bought where we live.
• We have easily paid the new house loan, and we are free from loans.
• Sue’s mom told Jim one more thing that is important  “don’t buy anything on loan”. The next

3. Don’t buy anything on credit.

Sue told that Jim wants to buy a boat

• For buying a boat we started saving for 5 years.
• After that, we bought a boat.
• We dint buy a boat immediately, with taking a loan.
• The most amazing is that we bought a second-hand boat when was almost new and less used and run.
• The price is almost half that of the new boat.

Sue told there marriage is almost 30 years but we dint took any credit cards.

4. Don’t rely on willpower or discipline

Sue and Jim’s dint studied anywhere about these concepts, they applied this concept in real life.

Sue told the next secret, “I didn’t believe in willpower and discipline” if I could believe then we could not be able to save half amount also.

The rich man told without self-discipline how you could have been a millionaire. and you have 2 houses without any loans.

• Sue told when we got married, we are in the ’20s.
• We have many desires as every young couple has and its very difficult to save money.
• From our salary, the money gets automatically deducted.
• We could be able to save so much money that to automatically got save.
• For this, we have made some arrangements we have to go to the bank and sign many papers after that money deducts automatically.

Nowadays, youngster takes almost 30 min to make things automatic for saving some portion of the money.

Jim told for this we got extraordinary results.

Sue told that this is not extraordinary this is too easy. anybody can make it automatic and without tension live their lives.

• It is not that we have dint spend life like a miser in the last 30 years.
• We have enjoyed our lives. and we took vacation also as our friends and we saved money as well.
• And we don’t have tension for the house loan, because few things automated.
• Finally, Sue told, For automation, we could be able to enjoy our life.
• We don’t want to think always of money, at first it took time to make things automated.

The rich man got amazed by the idea of the old couple.

Sue and Jim both hold their hands and moved out of David’s office.

If you want to really be a millionaire, start saving money and make it an automated process such that few percentages of money gets deducts automatically from your salary.

This is a slow process to grow rich automatically but it works.