The Automatic Millionaire
April 15, 2009
I’ve been reading this amazing book called the Automatic Millionaire. It starts with two principles-Pay yourself First, and Make it Automatic.
We talked before about the emotional impact that money can have on our satisfaction, our security, and our sense of empowerment.
If you were raised like I was, it was with the sense that Uncle Sam takes his bit, you pay the bill collectors, who’ve been providing services to you all month to help you stay fed, warm, clothed, and sheltered. THEN, and only then, can you pay yourself. The book does something I realized 10 years ago, but never really grasped how to change from a working class level-pay yourself FIRST. Set aside money for Future Promise.
I have a difficult time imagining a future Me. I love to plan, I love to look about 2-10 months down the road..to bubble with excitement, to strategize, to rise to the challenge of unexpected bumps that try and derail a good vacation, celebration, or travel. But further than that? It’s silly, I know, because I already hope to live a good long life. but how am I to know what Future Promise wants? What her hopes and dreams are? Where she’s been let down, and where she’s been pleasantly surprised?
Well, the fact is, she IS going to want money. More is better than less, right? Hence my mom giving me the book, and me, being in the right state of mind to absorb the same exact lessons from 10 years ago, have said shut it to the tiny voice in my head and am starting to listen.
So, the first thing? PAY YOURSELF FIRST. Set aside 1%, 2%, 6 1/4 %, I Don’t care! Set aside something for Future You every time you get paid. If you do this first, and start making it automatic, so you aren’t even aware of when it happens, and to the place it goes, I believe this will work. It does take some managing eventually, but the first step, is to Do It.
I also recommend buying the book for yourself. and if you don’t like it, come back here and say so. I want to hear what you think! Money is a strange and dangerous tool. We must wield with the flame of wisdom.
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tribe.net: mylittlepail.com on Wed, 15th Apr 2009 4:10 pm
The Automatic Millionaire…
ve been reading this amazing book called the Automatic Millionaire. It starts……
Brenda on Wed, 13th May 2009 1:30 pm
I do this! I set up automatic transfers into my short term savings (for vacations, large purchases, emergencies, christmas, etc) each pay period which is in the same bank as my checking account so if I’m short one month I can easily transfer cash in to cover until I get paid. I also have a long term savings (affectionately titled the Brenda Wants a House Fund) which I opened up with ING (which earns 3.5% interest – higher than any bank) Which I put money into monthly. I did this because of the whole “out of site out of mind” theory and its much harder to dip into as it takes 3-4 days for withdrawals to process from that account as there is no physical bank (its online only – part of the reason they can offer such high interest rates).
Sounds like the book is a good one!
promise on Thu, 21st May 2009 12:31 pm
I keep coming back and re-reading this post. You give such a succinct snapshot, Brenda! It’s very inspiring, even if it isn’t the easiest thing to do.