Automatic Millionaire

I have read many personal finance books. I guess I am looking for some miracle idea to solve financial problems so it becomes less of a worry. I recently read and reviewed Dave Ramsey's latest book, Total Money Makeover. David Bach's book, Automatic Millionaire, really doesn't bring anything new to the table.

In fact, he claims to have gotten his idea from a couple he was providing financial counseling to when he was just starting in the finance business. I have no idea why this couple went to him in the first place (I believe he made the whole thing up anyway). This couple wanted to retire early. They had no debt, own real estate free and clear, and had substantial retirement savings. They got this way by following the same old, tried and true personal finance maxims.

1. Spend less money than you make.
2. No debt, pay it off as quick as possible.
3. Pay in cash for purchases. Save up for big ticket items.
4. Create a savings plan to pay yourself first (eventually move this savings to high interest accounts and investments).
5. Have an emergency stash of money that is accessible and will take care of expenses for 3-6 months.
6. Donate to charity.

That's it in a nutshell. Bach's twist on the above ideas is to set-up automatic payroll deductions or withdrawals so you don't have to think about it.

Well, his plan probably works. But if he truly learned this trick from that couple he counseled, he should pay them a royalty. He is making a mint off of this idea.