David Bach's 7 Places Your Money Needs To Go Automatically
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- čas přidán 2. 08. 2024
- In this exclusive video training, I will walk you through the seven places your money should automatically be going every month. If you’ve ever been overwhelmed with all of the bills to pay, retirement, savings, debts to keep up with, etc…then you need to watch how I break this down quickly and easily into a plan that’s actionable and easy.
1. retirement plan
2. checking account
3. emergency account
4. dream account
5. credit card bills
6. regular bills
7. charity
Thanks for uploading :-)
Allen Sagalla o
Hopefully not that order
@@UltimateTexasHoldemGuru I agree with u, Math Guru. It's easy for Mr. Bach with his money. I asked myself, "Is Mr. Bach ACTUALLY GIVING 90% of HIS INCOME/WEALTH TO CHARITY?" Just a question. (Household necessities expenses at the lower end of spectrum. I don't agree with). I personally think each person should weigh their basic necessities responsibilities & go from there. Have a blessed day as God leads each in making SOUND DECISIONS.
In my opinion number 6 should be at 3 and so on.. And number 7 is optional..
@@ladymalialoloheaveronicatu731 You're welcome :-)
I have no debt at all. Over 2 years saved up in savings and now building my long term dividend stock investments by living in a much cheaper place to live(geographic arbitrage) to retire early. Feels so much better than when I had maxed out my credit cards, had no savings and bought a new car right before losing my job. It's been a journey but worth the effort :D
Done. I have no debts. I like numbers. I budget and pay max into my Roth. I’m poor but I’ll be a millionaire in 12 years
Omnipotent Being how?
Lucky 6 buy low, repair the house with a repair team then sell for market value
Right, go ahead and send your money to wall street.....that money isn't really yours....doubtful it will be there in 12 years.
...That''s about ...right ...is What i TOLD ..My HARDHEADED...Daughters..They Go OUT and BUY ...smartphones BUT DON""T DO ANYTHING ...smart with ..it ...Whaaatttt...!!?
...That''s About ...Right i TELL My HARDHEADED Daughters this all The TIME..!!...all they wanna do is paint their fingers and toenails and take silly'- ass ...selfi-''s
There are many ways to slice this and this what I would do which differs somewhat.
1. Definitely pay yourself first
2. Pay down debt. Largest interest rate first with minimum on the other CCs. Keep rolling from highest to lowest interest rates. In most cases will be paid off much earlier. You may want to cut up your credit cards at this point.
3. After debt paid off then see #1 above. Your Cc statement money now passes into your savings and then follow the 6 places to put your money.
4. You may want to have only one credit card for emergencies and pay it off every month.
5. Don’t get suckered by cash back. Remember the credit card interest rates if not paid off each month will eat away any bonus you might receive. If you pay off the card then the bonus will apply.
6. Never try to keep up with the Jones’ for all you know that are flat broke trying to keep up with the Smiths’
Good luck or should I say smart investing.
True, one thing he hasn't mentioned is to pay the mortgage weekly. Every January I pay the mortgage weekly for 12 weeks. I bang out one year mortgage and able to sleep knowing if I'm unable to work the rest of year my house is paid up.
After the 12 weeks I then pay down the principal every month. Usually, I pay the full amount of what the mortgage company put towards the principal which is $500.
If one has bonus use the bonus to pay the 12 weeks or take it from the dream account while continue to add to the account from your paycheck.
The mortgage is paid off quicker and their is more money to save and invest the rest of the year.
God Bless you David!! This looks like something anyone could know since they are teenagers. Apparently most of us don't. Thank you so much for making a difference un women's life
great template, I am using something similar for these last 3 months and out of nowhere I am finding extra money in my account where before I used to spend everything. Thank you
Here from the CNBC article recently - as a multi-property owner I appreciate the encouragement! Following rules and holding on tight
hey buddy, where ti start to be like you multi property owner? thanks
David Bach you have great advice! I first read your book Automatic Millionaire then decided to change my major to Accounting. Thank you for inspiring me!
One of my favorite financial coaches! Always great to hear words of wisdom from David Bach!
Hope this kind of lessons should be taught in schools.. Im so happy for myself I learned personal finance back in college and thank God I have started to set up my emergency fund and retirement acct right after I received my first paycheck..
@kimpatani6862 - Boy, I wish this stuff had been a required course in high school...Stupid me; I was all set to save 10% of my first paycheck, (VERY small paycheck, even though full-time job) & remember thinking "Oh, I can't afford that", so, I didn't save at all! A friend recently asked me, "Why didn't you save 5% or even 3%?"( Because by having an 'all or nothing' mentality, I never even *thought* of that!!)
Sigh.
Bro you just made it so simple then any other CZcams video on wealth. I love it man! I'ma use this knowledge 😊
Thanks again, because of you I survived 🆔 theft in so many ways, I'm still a work in progress however, I have two 🏦 s now.
You talked to me like the dad I don't have.
#Passionately
Thank you.
Great Video! Step #6 on those Regualr bills -have them charged to a credit card earning 2% cash back. Make sure all credit cards are paid iin full. If not, close them so you don't use them!
Some really great advice. I am already doing most of these things. Also, make a budget and stick to it. It has really helped me out.
First, I would like to say that this is great! I wish the tool for the worksheet was available. Hope you have the opportunity to correct that. All said, I appreciate the advise and hope that many use the lesson a way for financial independence.
Thank you so much for this - my friend mentioned you yesterday and I have really valued your video and look forward to more
Thank you. Your idea inspires me. I will do that on my commission pay...although, my commission is small, I know it will grow bigger as my momentum is starting-up. I have also learned from the past about properly managing credit card, I was in deep debt because of it. Have gotten rid of them all because it do not serve me at the moment, I payed everything in cash now. I may consider getting at least only one credit card for convenience that cashless transactions can give when the time is right. As life's lesson learned and good money handling developed and became a habit, I may now consider myself reformed enough to use credit card to my advantage, and not to the credit card company's advantage.
I’m learning from your video. For up coming holiday season working extra jobs besides regular job I’m saving now I’ve solid idea. Everything mine is automatic but watching your video is worth
The best advice I got from David was, ' real estate does more then 10 times more better then those who rent '
damn I feel like a sucker now that I think about pre savings....could have had 10k stacked already wow.....eye opener
Beautiful! thank you so much for these tips. I'll start a Dream and Emergency account asap.
Thanks so much my brother and friend in humanity i will start it now!
David, there is no link for the tool. Thanks once again for the great video. It's really helped me.
Listening to this while I was sleeping was lovely
Sound Advice-I actually do this and it works!
Me too!
I think the key here is results are not typical and every person case these techniques may not apply to. People who are married, kids, tax bracket, student loans, annual salary, and so fourth. This is for those who don’t necessarily have a lack of income problem, this is for those who have good income but lack financial management skills.
This would still apply but at a smaller scale. But the most important is to understand how you spend your money and how you can cut the losses. Another thing to do would be to create other sources of income (E. G passive income)
I'm really considering the giving out part. It something I have always thought of. Thanks for the rejuvenation!
Hi David Bach thank you so much for your knowledge and wisdom around financial maintenance - i have already shared this video with others
Amazingly simple . Thank you for sharing yr knowledge with us .
Absolutely worth it! Thanks David and hellos from Switzerland.
David thank you so much. I will one day testify your words.
This video got me to buy the book. Just saying: good job!
hey david, thank you, really love your stuff, please keep doing
This should be taught in school!
...These silly Kids THINK ...mutual funds are something some one made up ...and ...ROTH/IRA...is a ...joke..
@@PedalToTheMetal61888 Be educated man. If the market crash, it will jump back. Look at the past 100 years. you need all the companies in the US to go bankrupt to make your ROTH/IRA = 0 which is impossible. And hypothetically if all companies go bankrupt and their employees get laid off, Guess what????? Your real estate will go downhill as well.
Credit card bills is the number one preference to me always
totally agree with the philosophy, David. Thanks :-)
Amazing. I loved this concept. personal finance automation.
What a nice presentation! I really like your diagram
Heard you for the first time at the NAHREP at L'ATTITUDE National Conference and really loved your simple approach ! ! ! ! ! Automatic and painless......DO IT
This is somewhat similar to the jar method of saving. Thanks for uploading :-)
Your advice is great for people who are financially stable and have a decent income coming in. What if you're on minimum wages, have a family with kids, debt, mortgage/ rent, utilities and the list goes on... Half of what you said is not achievable until the debts are paid off or getting a second job.
I followed his advice when I was low wage earner. I paid myself first in my IRA..it is doable. You can pay bills and pay yourself 1st too at the same time.
It really is simple when you think about it David! I’m from the U.K. so a few things differ but the ideas remain the same, I try to help everyone I can work this out, and when they do it’s like a light bulb!
Wot to do at 50 on disability benefits??
Hey Dave! May I ask where is the worksheet! I think you are an EXCELLENT and PASSIONATE teacher!
Thanks David. I love the info. I don't see a download. Can you guide me where to find it
Thanks David I am reading your smart couples finish rich - its excellent - have just opened my stocks and shares account for our retirement with a direct debit going straight in there and am also going to open an account for my kids and start teaching them about how to work with their money
You have taught me so much form your books and videos!!! Love it!!!!!
Hi David, I love your books! I read it so many years ago. Glad I found you in youtube!
Good bless you David.. thank you
I thoroughly enjoyed this presentation!
Great Information 👍 I've put to use. Became Debt Free 2022. Now Only use Debt Card.
The system works great; I learned it from your book many years ago. There's a missing piece. Discretionary expenses like gas, groceries, clothing... If we commit 5% to retirement, 5% to an emergency fund, and 90% to dreams, credit cards, regular bills etc then we go hungry. I have long wondered how to gauge when we are spending too much on discretionary expenses, and where they fall in terms of importance on your chart. Any thoughts?
Looking forward to the reply.
"If we commit 5% to retirement, 5% to an emergency fund, and 90%...then we go hungry." If you're going hungry then your spending is out of control. If you cannot completely pay off your Credit Cards in full every month then you're spending too much on discretionary purchases. The 5% toward retirement should be considered a minimum. Ideally you want to contribute at least to the company match and preferably 10% as a starting point. Maxing out your 401(k) at $18,000 every year should be a goal. You should max out a ROTH IRA @ $5,500 a year every year and let that double as your Emergency Fund (E.F.).
If you can do those 3 things 1) +10% toward your 401(k) 2) ROTH IRA @ $5,500 3) pay off all Credit Cards in full every month, then you're starting on the right path.
If you think that so-called "90%" figure he gave is some sort of hard rule, then ignore it. It is not some sort of license to spend willy nilly after you're covered the first 10%.
Thank you Al! I just completed automating my bills. I now can clearly see my discretionary fund and track my spending. David Bach has already saved me money just by automating my bills. Most bill companies offer discounts on either paying automatically, or paying less frequently (if you can manage that). For instance, AAA offers monthly, quarterly, semi-annual or annual payment schedules. Each payment incurs a $7.00 handling fee. So, the less frequent you pay, the less you are charged the $7.00. Now, if you pay the full amount once a year, there is no fee! Also, by setting up auto-pay with AAA, the reduce the handling fee to $3.00! Now, I need to get my gym membership (annual bill) and Experian credit check service (monthly bill) automated. Experian can only use a credit or debit card, and I don't have one associated with my account for bills. I suppose I can get the card and just cut it up after using it to set up auto-pay.
Al Rocky you got it. I have done all of that. I'm out of debt. Saving 20% before taxes on 401k. And fully funding a Roth IRA every year, and saving for a two year emergency fund. The problem is that most people give priority to buying the last gadgets and not saving for their future. If everyone really took control of their expenses we wouldn't have the stress and problems we have. Being financially independent gives you choices and power to change your life to do what you like.
Thanks David for informative video
I need to try this. Thx
Thanks a lot for that
Very informative
Where I can find the link to the document
Thanks again
Never heard of you before today when you came
Up in my CZcams feed
I listened ,subscribed and was left with just 1 question which I d rather keep my personal business private and my comment here is anything but.
Do you have any suggestions please?
Thank you
Thank you David.
Thank you David!
This is the first time i have watched a video such as this. Honestly we were taught financial literacy back in middle school / Jr High up untill the 80s. Not sure why they stopped. I have always done this with my monthly budget. And it should be common sense. But i guess that isnt so common anymore. The only thing is lack is the emergency and dream funds as i am more about giving to others. God helps those who help others and HE gives to those who give to others. Good information though. Much appreciated.
So "god" is our emergency fund?
I hope you've rethought that plan in the last 2 years...
Perhaps I'm mistaken, but I do not see the downloadable worksheets in the description you mentioned at the end.
David where is the link to download this document you have shown. Please share if you can
where to download it
Thank you. Much appreciated advice.
Love the content, it's makes so much sense when all the pieces of the puzzle are presented like that! Love the ending too, thank you for sharing this
It's a great concept and is bound to work without question. I've been doing something similar myself since 2004 and I'm excited about having a plan in place. However, one aspect that irks me is the fact that inflation has killed most people's incomes for the last twenty years and the majority of workers are working to simply pay bills. Just sayin.
That is so true
Thank you so so much 🙏
High interest debt should probably be #1. It’s tough to match the interest rate on a credit card
Pay yourself always has to come first. Otherwise you will never, ever, ever get ahead.
I agree with you. Depending on the amount of debt, it should at least come before funding a dream account.
Love your energy!!!
thank you for the knowledge sir have a good day.
Thank you sooo much !
I can’t see the link to the template . Am I missing something ?
This is such great information; I try to get all my young colleagues to read The Automatic Millionaire. It kills me that I didn't start saving till after I was 40, and I want them to avoid making the same mistake. Please attach download. Thank you, Susan. p.s. Looking forward to 2.0 showing up on my Kindle tomorrow!
Thank you eelamist89! Now, I just need to figure out how to edit it:)
I started using your method 3 years ago after reading ur book, I had nothing &, now I am debt free, 4 months in security account, 2 months for investing, 2 months for dreams, I am giving 2.5%, & no retirement account, but this works.
well done. Your proving slowly but surely wins
Wow excellent breakdown, thanks David.
Thank you~ I've already received returns on your instructions 😊 😀 ☺
Solid advice but a little too modest getting started. We paid off all debt as fast as possible, and then I invested 100% of my salary for a solid 12mo while we lived on my wife's salary so we could get a huge boost in retirement savings and now we invest 30%+ monthly and nearly max out all accounts.
Great plan to handle personal finances. Thanks for sharing.
Great tips, just a side note, your voice sounds very similar to Gary Vanyerchuck’s. Have a good day!
Yes! 👏 I was trying to think who he sounds like...Gary Vee!
Thank you David :)
Where do you find That chart that shows how much to save at what age?
Extremely relevant, thanks
Awesome 🌹
Thank you for this training, David. However, there is no tool to download. Happy Holidays!
I concur. I would love to have the tool. I may just create my own now that I have all my bills automatically set up. Can't believe I haven't done this years ago!
Marfin
I have a question for you, my city government job offers pensions for retirement. They switched over to a defined benefits plan and I’d like to know, is it still a pension? Or is it different? Can’t get a straight answer, thanks
Thanks.
This is fn phenomenal
Taking action 🎬 💪
Hi I am a student soon to be working and I would like to know can banks set up a system where money goes into these sections in a cheque account automatically? ✨
Great information :)
People should seek out advisory service and information to get proper introduction into the stock market
It is a risky trading business and people should know that Everyone needs help to become a true trader, and I am not sure if it is possible to get this help by watching videos on CZcams but maybe in a real investment firm or bank. As you have many more verified successful traders there.
Yeah true John Even now I still welcome ALL Help, literally, any help is good, it can only make you better.
Good thing I can imagine about it though is that you can decide yourself how much you want to risk.. So you would still need some experience trading.
I am opened to more opinion and I want to give this a try, let me know how effective the outcome will be. How can I get involved, do i pay a monthly retainer to the trader for trading/ percentage of profits/both?
Yeah ma’am it’s on an agreed contract percentage, I m opportune to be investing Jim oddain on his portfolio We met in a trading conference in Chicago. So far my account is reading over $14,000 with his help, I have been able to save up more income these past months
The great thing about saying "have an emergency fund with X amount of expenses" is that a lot of what I "spend" each month isn't actually an "expense". So for example, I have private REIT income coming in each month that I use to buy ETF shares. For the foreseeable future, I'm committed to buying ETF shares with that money. But in the event that I ever needed to draw on an "emergency fund", then obviously I don't HAVE to buy new ETF shares; they're not an "expense".
Right as I started following this formula, COVID hit and I lost my job. Sure wish I had that emergency fund. Now that I have my job back, I'm growing it!
So glad you got your job back!! 🙂
I like this vid.. Good tips.
Do you treat a 529 plan a regular bill ?
Some people may not even earn enough to keep basic food and shelter to even start planning financially in this way. The first place your money should go after health and nutrition is towards development of your skills or knowledge to be able to earn more.
Excellent
Great video.
Very good
How can the debt owed be factored into this strategy? Savings are important but what’s the best way to incorporate paying off any debt owed?
Neat video, turns out I already do all of this with some exceptions... I don't have a dream account because early retirement is my dream, so I funnel that money into my IRA/401K/HSA accounts.
Also I automatically pay as many of my bills as possible with my credit card (that's right Dave Ramsey!) for cash back. Then the full balance of my credit card is automatically paid every month so I get no late fees or interest. By doing this I receive 2% cash back on about 95% of all my expenses. I like to think of it as countering inflation.