Book Reviews

Should I Buy This Book? Review: The Automatic Millionaire

The Automatic Millionaire I tend to be very short when I talk, so that’s how I’m planning to make my book reviews. They’re going to be short and sweet and to the point. I’m not here to sell it to you, I’m just here to tell you if it should be added to your personal finance arsenal.

The bases of The Automatic Millionaire is to automatically deduct money either from your paycheck or from your bank account.

The book covers making automatic:

  • Retirement
  • Savings
  • Emergency Fund
  • Mortgage Payment
  • Getting Out of Debt
  • Tithing

The Negative

The only thing I didn’t like about the book was the beginning of the chapter on mortgages. The author really tries to sell you on homeownership being better than renting. He doesn’t bring in all of the factors that affect the total you pay for a house. He leaves out the fact you have to pay taxes, insurance, and maintenance. Those factors can lead to a lot of extra expense.

I do believe homeownership is great but only for the intangibles of a house, for example: Stability, Freedom, etc. I wouldn’t buy a house and think of it as an investment.

The Positive

It does a great job selling you on making everything automatic and I would recommend all of the steps given to do that. It tells you each step to take to become an automatic millionaire. I believe that it’s a lot easier to save when you don’t have to think about it all of the time. This book gets that point across and tells you how. It also does a great job of guiding you to get out of debt. Pretty much the whole book is a positive and it really motivates you to save money in one way or another.

Would I buy it?

Absolutely, and I did. This is a book you should own to help build your foundation of personal finance knowledge.

Buy It

I’m putting the new and used links up because I prefer to buy used to save money, so I thought I’d pass it on.

The Automatic Millionaire New

The Automatic Millionaire Used

P.S. Some of the links in this post I earn a little bit of money from, in order to pay my bills. But I promise to never to intentionally lead you to a bad company and to never let the money affect my opinion.

Have you read The Automatic Millionaire? How did you like the book?

Comments (7)

  • You don’t think buying a home is an investment?
    hmmm…

    I’ll be pretty happy when mine is paid off and I no longer have a house payment.

    Sure, it’s more expensive than renting a place, but it will be paid for soon.

    I have an uncle who is almost 60 that has rented his entire life. I’ll be house payment free 10 years before that. How is that not an investment?

    Reply
    • I didn’t say it’s not an investment. I just said when I buy a home it won’t be for an investment.
      I do however think it’s a bad investment when you think about all of the costs associated with it. First, you have the taxes and insurance which you have to pay for life, and then whenever something breaks you have to pay for it.
      When you add it all up it can negate any profit you make…especially if a recession happens like this and your home value goes down.

      Reply
  • Wouldn’t you still say that taxes/insurance are a fraction of the cost of renting a home?

    Also, even if the market drops 50%, which it still hasn’t done, once you pay off the house, you can sell it and be waaaaaaay ahead.

    .. still good thoughts on the book. I’ve looked at it a few times.

    Reply
    • I understand where you’re coming from. Once the house is paid off you will have a lot less of an expense as opposed to renting. But when you rent you don’t have to pay for anything that breaks. There’s positives and negatives to everything. For me a house won’t be thought of as an investment as much as it is thought of as a place for my family to grow in.
      Thanks for the discussion though, I like it :)

      Reply
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