The Automatic Millionaire, Expanded and Updated

A Powerful One-Step Plan to Live and Finish Rich

by David Bach

4.7(3,365 ratings)

13 min read

Brief overview

This book teaches a simple yet powerful plan for building long-term wealth without complicated budgets or drastic lifestyle changes. By focusing on small daily expenses, paying yourself first, and automating every step, it guides you toward financial independence. You’ll learn that anyone can start—even with modest income—to gradually and reliably become an automatic millionaire.

A Bigger Dream

Many people feel overwhelmed by money worries: mortgage or rent, bills, debt, and the fear of having too little saved for retirement. This can make the American Dream appear out of reach. However, everyday people can turn things around by following an approach that focuses on small changes. The idea is to harness the power of automation so your finances essentially manage themselves. This method addresses the reality that self-discipline alone might not suffice. It leans on a strategy capable of working for virtually anyone, no matter their salary. The goal is simple: learn how to automate savings and investments so that generating long-term wealth becomes a natural part of your routine. A subtle shift in thinking here leads to big payoffs. By starting small and paying yourself first, you can maintain your lifestyle while steadily creating a more secure future. This is the mindset shift at the core of becoming an automatic millionaire.

When people discover the principles in these pages, they realize that getting rich slowly is still possible—even in uncertain times. It’s not about constantly tightening your belt or chasing risky investments. It’s about making the most of what you do have, one minor habit change at a time.

Small, repeated actions can create massive outcomes over the course of a lifetime.

The Latte Factor

One of the most memorable ideas in this book is what many call “The Latte Factor.” It refers to the daily coffee or small indulgence we often don’t think about. When added up, these routine expenditures can become a significant sum. By redirecting that money into savings or investments, you can accumulate surprising wealth over time. The key isn’t to swear off every treat—it’s to become aware of mindless spending. By examining your daily purchases, you can find hidden pockets of money that can be put to better use—like investing in a retirement account or funding an emergency fund.

Money spent on autopilot can be saved or invested on autopilot too.

Try tracking your small daily expenses for just a few days. Whether it’s premium coffee, convenience snacks, or other impulse buys, once you see the totals, you’ll likely be motivated to change. This doesn’t mean living a life of deprivation. It’s about building awareness and deciding what matters more—a quick pick-me-up or the financial security you dream of. Over time, those small savings can snowball into meaningful wealth.

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What is The Automatic Millionaire, Expanded and Updated about?

The Automatic Millionaire, Expanded and Updated by David Bach is a transformative guidebook that offers a straightforward, actionable path to financial freedom. At its core, the book presents a one-step plan centered on financial automation and the revolutionary idea of 'paying yourself first.' This latest edition enriches Bach’s previous concepts, emphasizing the practical application of achieving sustained wealth without the need for stringent budgeting or drastic lifestyle modifications. It delves into the significance of daily expenditure awareness and demonstrates how seemingly minor changes can lead to major financial growth over time.

In a world where financial anxiety prevails, Bach's compelling narrative instills confidence that anyone, regardless of income, can adopt a tortoise-like approach to gain wealth steadily. He outlines how leveraging automated systems can eliminate the effort of financial discipline, offering lasting peace of mind by ensuring consistent growth and security. Factoring in real-world examples and heartfelt illustrations, this book serves as a beacon for those seeking to live richer, more fulfilled lives.

Review of The Automatic Millionaire, Expanded and Updated

David Bach's "The Automatic Millionaire, Expanded and Updated" is an enlightening financial manual that addresses the hectic reality of modern life while offering practical solutions for wealth accumulation. Its key strength lies in its simplicity: rather than relying on complex budgeting practices or rapid wealth accumulation schemes, Bach champions the beauty of financial automation. This system allows individuals to "set it and forget it," reducing anxiety around money management.

Bach’s approachable and relatable writing style makes the material accessible to a wide audience, from financial novices to seasoned savers. His use of relatable case studies, like the story of Jim and Sue McIntyre, exemplifies how ordinary people achieve extraordinary financial milestones. The book’s practical applications are evident in its recommendations to automate savings and utilize pre-tax retirement accounts, illustrating clear pathways to financial independence.

Targeted predominantly at those seeking financial improvement, whether that be climbing out of debt or building a robust retirement plan, the book shines a light on the path to becoming an 'automatic millionaire.' With a conversational yet professional tone, Bach leaves readers empowered with the knowledge and tools to restructure their financial existence. Highly recommended for anyone looking to embrace a stress-free financial future.

It is a compelling reminder that achieving financial security isn’t simply about income level or luck—it’s about thoughtful planning and making the money you earn work for you.

Who should read The Automatic Millionaire, Expanded and Updated?

**Young Professionals** – **Benefit:** Carve out a robust savings foundation early in their careers, ensuring long-term financial stability.
**Recent Graduates** – **Benefit:** Transition smoothly from academia to the workforce with a solid understanding of savings and investment basics.
**Middle-Aged Individuals** – **Benefit:** Reassess existing financial plans to ensure they align with long-term retirement goals.
**Freelancers and Entrepreneurs** – **Benefit:** Establish strong, automated financial systems that aren't dependent on a steady monthly paycheck.
**Debt Weary Individuals** – **Benefit:** Learn strategic approaches to eliminate debt while saving for future wellbeing.

About the author

David Bach is a renowned American financial author, television personality, and motivational speaker. He is best known for his Finish Rich Book Series and Automatic Millionaire Series, with over seven million copies in print. Bach has written 12 books since 1998, including nine consecutive New York Times bestsellers, with two of them reaching #1 on the list. He has appeared on numerous television shows, including The Oprah Winfrey Show, CNN's American Morning, and NBC's Today, and has hosted two public television specials and two radio shows.