In this video David Bach explains about finance and how you can have a substantial amount of money available for you after several years if you only save $10 a day. Unfortunately, we are not taught finance in school and the experts you consult may make it too difficult for you to understand or follow a plan.
David Bach on how to get rich
Financial writer and best selling author David Bach advises how to get rich in his book, “The Automatic Millionaire.”
Youtube video uploaded on Jan 14, 2011.
A rule of thumb is to start investing as early as you can. A smart move is to buy a house even if you are still single. It is better to pay a mortgage than to pay a rent and as your income grow through the years, you are able to pay back faster.
If you compare two persons, a renter and an owner, which one is the richer?
That makes sense.
David Bach also says that there is not only the stock market that you can invest in. There are many options available if you start studying finance. Some people want to be debt free before they start investing, and that’s a big mistake because they are losing years where their money could have grown.
Paying debt and investing can be done at the same time and it is more rewarding and less frustrating as you see yourself making progress.
Most people raise their standard of living too soon in buying a huge house and a luxury car before they have serious investments going on. All the money goes then in interest fees for the bank. Wouldn’t it be more reasonable to be more moderate and invest the extra money saved instead?
It is also important to note that it’s never too late to start saving and investing. If you are in your forties or even fifties, you still can save $10 a day for your investment. After ten or 20 years, it can become a nice amount for your retirement.
The secret that every experts agree on is that you have to pay you first. Each time you receive your salary, immediately set apart 10% for your investments and pay your bills after, not the other way around. It may be difficult at first, but you will be glad you did.