The Automatic Millionaire

by David Bach

Troy Shu
Troy Shu
Updated at: March 12, 2024
The Automatic Millionaire
The Automatic Millionaire

What are the big ideas? 1. The Latte Factor: This book introduces the concept of the "Latte Factor," which refers to seemingly small, daily expenses that, when accu

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What are the big ideas?

  1. The Latte Factor: This book introduces the concept of the "Latte Factor," which refers to seemingly small, daily expenses that, when accumulated over time, can hinder your ability to save and invest effectively for financial security. By identifying and eliminating these small expenses through tracking spending or using apps like or, you can save significant amounts of money over the long term.
  2. Paying yourself first: The book emphasizes the importance of paying yourself first by automating savings contributions and focusing on increasing income rather than cutting expenses as a means to save more. This approach contrasts with traditional budgeting methods or get-rich-quick schemes.
  3. Automate for a Rainy Day: Building an emergency fund is essential for financial security, and the book recommends automating savings contributions to achieve this goal. Additionally, it suggests using money market accounts, U.S. Savings Bonds, or other investment options that provide higher interest rates than traditional savings accounts.
  4. Automatic Debt-Free Homeownership: The book advocates for paying off your mortgage early as a means of building equity in your home and increasing savings for retirement or future home purchases. It offers practical strategies such as biweekly mortgage payment plans, making extra principal payments, or using online tools to track and manage mortgage payments.
  5. Automatic Tithing: The book emphasizes the importance of charitable giving as part of wealth-building and recommends automating your charitable donations for ease and consistency. It also discusses the potential tax benefits of using donor-advised mutual funds or researching charities to ensure they effectively use donated funds.


Preface to the Updated Edition


  • The author's goal was to help 10 million people become "automatic millionaires."
  • Word of mouth from people taking action helped make the book a bestseller.
  • The book reached #1 on various bestseller lists and was translated into fifteen languages.
  • The success of the book showed the need for simple, actionable money advice.
  • Updating the book is necessary due to constant changes in the world and financial systems.
  • Technology makes it easier to become an "Automatic Millionaire."
  • Includes updated references, recommendations, and success stories.
  • Added a "The Automatic Millionaire Blueprint" and bonus video program.
  • The book's goal is to make learning about money easy, fun, and actionable.
  • Taking right action and making your financial life automatic makes everything easier.



  • The Automatic Millionaire system can help transform you into a millionaire in just an hour or two.
  • The American Dream of owning a home, retiring with enough money, etc., has become elusive for many Americans due to economic downturns and high debt.
  • Most Americans have insufficient savings and are living paycheck to paycheck or even running up credit card debt.
  • There is a simple secret to getting rich in America that most people aren't using.
  • This book will share the secrets to becoming an Automatic Millionaire, including making your financial plan automatic and paying yourself first.
  • An automatic financial system guarantees success in building wealth over time.
  • The Automatic Millionaire Jumpstart audio program is offered as a bonus for inspiration and action.

Chapter One: Meeting the Automatic Millionaire


  • The McIntyres followed their parents' advice and created a system for wealth that required no will power or discipline.
  • They protected themselves from themselves by making everything automatic: savings, investments, mortgage payments, and even charitable giving.
  • By deciding to become rich and setting up an automated financial system, they made it impossible to fail.
  • They lived within their means, cut unnecessary expenses, and avoided debt.
  • Their approach was simple and effective, requiring no special talents or abilities. Anyone can do it.


“Once the decision is out of your hands, there’s no way you can be tempted into doing the wrong thing.”

Chapter Two: The Latte Factor: Becoming an Automatic Millionaire on Just a Few Dollars a Day


  • The Latte Factor is the small, seemingly insignificant expenses in your budget that, when added up, can prevent you from saving and investing enough for financial security.
  • Tracking your daily spending using a Latte Factor Challenge or an app like or can help you identify areas where you can cut back and save more.
  • By saving just $5 a day, you can accumulate over $1 million by age 65 if you invest consistently in low-cost index funds.
  • The power of compound interest is the secret to becoming an Automatic Millionaire.
  • Your future financial security is not determined by how much you earn but by how much you spend and save.


“A latte spurned is a fortune earned.”

“Remember, inspiration unused is merely entertainment. To get new results, you need to take new actions.”

Chapter Three: Learn to Pay Yourself First


  • Commit to saving at least 10% of your gross income each month by paying yourself first
  • Automate savings by setting up automatic transfers from checking account to retirement accounts
  • Aim for a savings rate of 20% or more if you want to retire early
  • Focus on increasing income rather than cutting expenses as a way to save more
  • Choose investments that have low fees and good long-term returns, such as index funds or mutual funds that track the stock market
  • Don't rely on budgeting or get-rich-quick schemes; instead, make saving automatic and consistent.

Chapter Four: Now Make It Automatic


  • Contribute 10% or more of your income to retirement accounts to ensure a secure financial future.
  • Retirement savings can be simple and effective with the help of automatic contributions and diversified investments in low-cost index funds, ETFs, or target-date funds.
  • Traditional IRAs and 401(k)s offer tax advantages, while Roth IRAs provide tax-free withdrawals in retirement.
  • Self-employed individuals can open a SEP IRA or a One-Person 401(k)/Profit-Sharing Plan.
  • Automatically invest your contributions and review your investment strategy regularly to ensure it remains aligned with your goals.

Chapter Five: Automate for a Rainy Day


  • Building an emergency fund is essential for financial security.
  • Money market accounts offer higher interest rates than traditional savings accounts and can be automated for regular contributions.
  • U.S. Savings Bonds, specifically I-Bonds and EE Bonds, provide a safe investment option with guaranteed returns and are easily purchased online through the government's TreasuryDirect website.
  • Automating savings contributions is key to achieving financial security and building wealth over time.
  • Eliminating debt should be a priority before focusing on saving and investing.

Chapter Six: Automatic Debt-Free Homeownership


  • Paying off your mortgage early can save you thousands of dollars in interest payments and shorten the length of your mortgage significantly.
  • Biweekly mortgage payment plans allow you to make extra payments toward your principal each month, helping you pay off your mortgage faster.
  • To implement a biweekly mortgage payment plan, call your lender and ask if they offer such programs or can refer you to a company that does.
  • If you prefer not to use a biweekly payment plan, consider making extra payments toward your principal each month or once a year.
  • Make sure your bank allows you to apply any extra payments directly to your mortgage principal.
  • Paying off your mortgage early can help you build equity in your home and increase your savings for retirement or future home purchases.

Chapter Seven: The Automatic Debt-Free Lifestyle


  • Consolidate credit card debt by transferring balances to one card with a lower interest rate or negotiating a lower rate with existing card companies.
  • Pay off debt while saving for the future by splitting your Pay Yourself First contribution in half, using one portion to pay down debt and the other for savings.
  • Use the DOLP system to efficiently pay off credit card balances by paying off cards with the lowest balance-to-minimum payment ratio first and closing accounts once they are paid off.
  • Automate credit card payments to ensure consistent and timely payments, making it easier to stick to a debt repayment plan.
  • Consider donating a percentage of your income (such as 10 percent) to charitable organizations through automatic contributions or tithing.

Chapter Eight: Make a Difference with Automatic Tithing


  • Charity is an important aspect of wealth-building, and tithing can help you develop a giving mindset.
  • Tithing is the act of donating 10 percent of your income to charitable causes.
  • Automate your charitable donations to make them easier and more consistent.
  • Research charities before donating to ensure they are using funds effectively.
  • Consider donor advised mutual funds for tax benefits and flexibility in charitable giving.
  • Many successful people, including billionaires, have made a habit of tithing before becoming wealthy.

Chapter Nine: The Automatic Millionaire Blueprint


  • Pay yourself first automatically by setting up automatic retirement contributions or creating a systematic investment plan for an IRA.
  • Deposit your paycheck automatically into a checking account using direct deposit.
  • Fund your emergency account automatically, either through payroll deduction or automatic transfers from your checking account.
  • Create a dream account and automatically transfer funds from each paycheck to save for big purchases or dreams.
  • Automatically pay credit card bills by setting up automatic minimum payments five days before the due date.
  • Pay all monthly bills automatically, either through online bill paying or automatic credit card payments.
  • Give to charity automatically by setting up regular donations through a charity or using a service like to track expenses and investments.

A Final Word: Your Journey Begins Today!


  • Don't let human nature prevent you from becoming an Automatic Millionaire.
  • Take action on the ideas learned in the book.
  • Start implementing simple principles for financial success.
  • Reread inspiring chapters and apply learned concepts.
  • Calculate your Latte Factor to increase savings.
  • Sign up for a retirement account or open an IRA.
  • Create a rainy day account for financial security.
  • Consider homeownership to build wealth.
  • Adopt an automatic debt-free lifestyle.
  • Practice giving back for abundance.
  • Automate all financial aspects of your life.
  • Imagine a better future with financial security and freedom.

Be Inspired!: Automatic Millionaire Success Stories


  • Set up automatic savings and debt repayment plans.
  • Live below your means and save at least 10% of your income.
  • Pay yourself first by automating your savings.
  • Create a budget, stick to it, and eliminate unnecessary expenses.
  • Increase your income through side jobs or investments.
  • Use debt wisely—for buying assets that appreciate in value, such as a home or education.
  • Make saving automatic and effortless.
  • Live on less than you earn and save the difference.
  • Eliminate high-interest debt to free up more money for savings and investments.
  • Set long-term financial goals and work toward them consistently.


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