Become Automatic Millionaire

Why do you think most people are not able to become rich? Because it demands a lot of hard work. So you will think that we work hard a lot, but we could not become rich. So you are right friends, no one can become a millionaire just by hard work. It is important that you follow financial etiquettes and financial principles along with hard work. David Bach tells the same thing in his book The Automatic Millionare that you do not need big investments to create a huge wealth. Now you can create good wealth even with small investments. And can become a millionaire. But for this it is important that you follow financial discipline and automatic millionaire system.

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Most of us think that right now our salary is very low, so when our salary increases further then we will start our investment. But just think about what was your salary 5 years ago, did you invest or save anything at that time and are you able to invest in your salary today? For most of us the answer will be no. We feel that no big wealth can be created by investing 2%. Or we keep waiting to find a quick risk scheme through which we can earn a lot of money in a short time and become a millionaire. But we forget that quick risk scheme can also make us lose our money. David says that we should stay away from plans like Quick Risk Scheme. And also tells how you can become a millionaire by starting with investing 2%.

Author David introduces

Latte Factor

and explains how you can become rich in the long run by saving the money for a coffee every day. For example, currently the price of a coffee in US is Rs 300 approx ($3.60). And I am telling you this in Indian currency because I live in India.
That means monthly 300 * 30 = 9000 rupees.
Yearly it is 9000 * 12 = 108000 rupees. And if you get a rate of interest of 10% annually for 30 years then your

Total amount invested = 32.4 lakh

Total interest earning = 1.62 Crore

Total amount earning = 1.94 Crores

Latte Factor Calculator

Through this investment and calculation called Late Factor, David wants to tell how an average person can become a millionaire even by saving the money of one coffee per day. You might be thinking that since we don't spend that much on coffee, we are not wasting any money. But it is not so, friends, the latte factor does not apply only to the price of the copy, it applies to everything in which we spend unnecessary money. And it can be different for every person. For example, I assume that you like to eat pizza and burgers. And what do you think will happen by saving Rs 1000 per month? We are not going to become millionaires with 1000 rupees.
So these examples for you

I assume that you order pizza, burgers or something outside twice a month, i.e.

500 * 2 = 1000

Yearly : 1000 * 12 = 12000 ₹

5 Years : 12000 * 5 = 60000 ₹

If you invest its rate of interest is 10% annually for 30 years i.e. the same amount if you invest for 30 years. Your

Total investment = Rs 360000

Total interest earning = Rs 1800000

Total future value = Rs 2150000

So you can see that even your monthly pizza and burger of ₹ 1000 is costing you ₹ 21.5 lakh of your actual future.

Author Debit has also mentioned many such case studies in his book. In which he has described the value of early investment and automation investment as important factors. For example, once Jim and Sue, an American couple, come to David for financial advice, David himself gets shocked after seeing their investments and wealth. Because the combined monthly income of Jim and Sue is 30000 USD. Which is much less than an average American couple. But his net worth is more than 2 million dollars. So Author David is forced to ask him what he has done to be able to create a network of more than 2 million USD dollars with such a low salary and in such a short time frame. So Jim and Sue told that they had started saving a small amount from their salary in the first month of their life. He never took a loan, did not take any quick risk scheme and kept investing money with discipline. And along with always increasing his salary, he also increased his investment amount from 4℅ to 15%. Besides, he also set up automatic payment to avail compound benefits. So that no investment of any month is missed.
Here, Author Devid introduces us to a very special financial strategy.

Setting up automatic payments

Author Debit says that if you want to make your financial journey more logical and easy, then it is important that you setup automatic payments in your investment app. Believe it or not, most of us do not know how to budget. And as soon as the salary comes, they finish the salary by paying every payment and bill.

You must have noticed that most private and government companies advise you to pay your bills at the beginning of the month. Because they also know that most of the people do not do budgeting and do not follow the discipline of finance. That's why to maintain your investment and minimize stress, it is important that you set up automatic payments.
No matter which fund you have invested in

Sip
stock
bonds
Mutual Fund

Your monthly payment will be deducted automatically.

Another benefit that you get from automatic investing is the benefits of compounding. This means that for a person who does discipline investing and does not miss his monthly investment, compound interest can be life changing.

Friends, you must have understood that with automatic payment setup, not only our investing remains regular but we also get the benefit of compound interest. There are many of us who believe in making manual payments, but believe me friends, after one or two years, you will start finding this manual payment very heavy. And it has also been seen that out of long term investments, only 2% people are able to follow manual payments. And the rest of the people who are not able to follow manual payments for a long time fail in their financial investments.

That's why Author Devid says that by making automatic and regular payments, you can earn crores of rupees even from your small investment.

I would like to thank everyone who came to my blog and read till the end and supported me and encouraged me. 🙏🙏🙏❤