Building substantial personal wealth can feel difficult and out of reach. But my guest says that even those with modest means can, with a few simple decisions and strategies, become millionaires, and even multi-millionaires.

David Bach is the author of the bestselling, newly updated personal finance classic, The Automatic Millionaire. Today on the show, we talk about the money management framework that will put you on the path to a free, secure, rich retirement. David explains his controversial “Latte Factor” principle, the astonishing power of compounding interest, how setting your finances on autopilot may be the most important financial move you can make, why he still believes in buying a home as an incomparable way to build wealth, the best way to pay down your debt, and more.

Resources Related to the Podcast

Connect With David Bach

Listen to the Podcast! (And don’t forget to leave us a review!)

Listen to the episode on a separate page

Download this episode

Subscribe to the podcast in the media player of your choice

Transcript

Brett McKay:

Brett McKay here and welcome to another edition of the AoM podcast. Building substantial personal wealth can feel difficult and out of reach, but my guest says that even those with modest means can with a few simple decisions and strategies become millionaires and even multimillionaires. David Bach is the author of the bestselling newly updated personal finance classic, The Automatic Millionaire. In the show we talk about the money management framework that’ll put you on the path to a free, secure, rich retirement. David explains his controversial latte factor principle, the astonishing power of compounding interest, how setting your finances on autopilot may be the most important financial move you can make, why he still believes in buying a home as an incomparable way to build wealth, the best way to pay down your debt, and more. After the show is over, check out our show notes at aom.is/millionaire.

All right, David Bach, welcome to the show.

David Bach:

Thank you, Brett, it’s great to be with you. I’m really excited to do this show with you.

Brett McKay:

Well, it’s been two decades since the original release of your book, and I’m sure a lot of our listeners have read this or heard about it, The Automatic Millionaire. And in this book you lay out a personal finance philosophy that can help people save for retirement and have financial security automatically. But you adopted this or you figured this out when you were a young financial advisor and you had this experience early on in your career with a married couple that opened up your eyes to the fact that wealth isn’t about how much you earn, but how you manage what you earn. So what were these people doing differently from the other people you were advising at the time?

David Bach:

Well, so lemme tell you how I met this couple and the couple, I refer to them in the book as Jim and Sue McIntyre. I used to teach back in the day, this is like in the nineties, I taught a retirement planning course and people would come to my class. It was actually out o...