David Bach's 7 Places Your Money Needs To Go Automatically

hey everybody I'm David Bach founder of the automatic Miller blueprint and the author of the number one New York Times best-selling book the automatic millionaire first of all I want to thank you for coming to watch this training and I really want to thank all of you for all of your comments from the first training video I'm so excited that that training video had such a big impact on so many of you and I know you're going to love the training video today here's what I have for you right now I'm going to show you how to put your entire financial life on autopilot in less than an hour now that may sound like a really big challenge but what you're going to see right now it's actually very simple this cool board that I've got here for you I'm going to walk you through the seven places that your money needs to go automatically to build financial security for life and again it's really simple when you know the order flow so let's just jump into it the first thing that needs to happen when you earn money you'll see I've got salary income here the first thing is happened when you earn money is you have to pay yourself first automatically now I talked about this in the first training video let's take a look at where that money goes before you take this money and you deposit in your bank account the first place you're going to put money is into a retirement account this is the only legal way that you can pay yourself first before you pay taxes the key word here though is it needs to happen automatic so what you want to do is assume you have a job right now you're working you want money to be peeled right off of your paycheck before you can touch it and put right into a retirement account that would be like a 401k plan at work IRA accounts self-employed retirement accounts the key here if you have a job and you're employed you want to have that money peeled off your paycheck right into that 401k plan now here's what you need to know most people who use 401k plans are saving around 3 to 4 percent and the reason is someone told them at some point in time all they should be saving is the minimum that their employer matches that's the single biggest mistake that people make what I want you to be doing is saving at least an hour a day of your income now I've started by showing you save 5% that's a minimum number but here's what I want you to do if you're not saving 10% 11% 12% right now I want you to pick a percentage of your income and then make it a goal to increase it every month what I've had people do is start with 5% the next month they go to 6% then they go to 7% then they go to 8% then they go to 9% then they go to 10% by the end of the year they're up to 12% and they don't even notice it if you don't have retirement account work then you're going to need to open up an IRA account if you're self-employed you'll want a self-employed retirement account or a 401k plan or defined benefits plan now on the automatic millionaire blueprint training and I do I'll break out for you later exactly what these accounts look like but just know that for right now the first place you can put money is in your retirement account all right we've got that taken care now the second thing when after you put money in your retirement house the second thing you're going to do is you're going to put money into a checking account here's the key folks this money should be going into a checking account automatically most Americans still today get physical checks if you're getting a physical check first of all it's just a huge waste of time you literally get handed that check and then you've got to walk that check down to the bank it doesn't make any sense if you're working for a company right now that can do automatic deposit for you have that money automatically deposited into a checking account now once that money is automatically deposited checking account now we've got one two three four five more buckets that you need to be automating in your financial life so here's what you want to do if you do not have an emergency account right now and by the way what's an emergency account the emergency that account is an account that you've got set up separate from your checking account doesn't have an ATM card it's an account that you're going to set up for what emergencies you want to consider this your airbag if you will like if you got in a car and you pull your seatbelt this is the account that's going to protect you in case you lose your job you can't work you become disabled whatever the financial situation may be you need to have an emergency account set up now let me walk you through what this should look like emergency accounts should have at a bare minimum three months of expenses set aside depending on the security of your job or your income or how much money you have the savings I would recommend as much as twenty four months of saving set aside but for most of you watching today if you can get a six-month cushion of it monthly expenses set aside that's a huge emergency account that should give you a lot of comfort now you may be looking me right now saying there's no way I can get six months of expenses aside no actually there is the way you do it is that you peel off a certain amount of money from your paycheck into this emergency account that's a second let's just say that's the third thing you do I just got done doing a speech recently like two weeks ago and a guy came up to me it was behind the stage actually I was doing a large event in Miami and one of the people who are working on the event he was in the crew he actually came up to me almost in tears and said David I just got to tell you something I read the automatic millionaire and the one key thing that I did after seeing you on Oprah and reading the book is I set up an emergency camp he said when I when I first saw you and heard that message I didn't have one and he said I set it up it took me eight years to build it because like I literally saw you eight years ago over eight years I built my emergency account he lost his job he said if he had had an emergency account set up he would have literally ended up homeless and he just like literally took me aside and said that's one of the most important things I've ever learned and I learned it from you so you know you may have heard of this idea of having an emergency account but my question to you honestly is right now you have one set up if you don't that's what you need to focus on next okay after the emergency account this one to me is a little bit more look it's quite frankly more exciting um this is what I call your dream account now most people don't have dream accounts let me walk you through what a dream account is when I was a financial adviser at Morgan Stanley one things I learned very early in my career is that talking to people about investments doesn't touch their heart what touches their heart and touches your heart is taking a look at what are your dreams what are things that you want to do with your life that you're not doing right now that take money and literally writing them out so I come up to me and say you know what my dream David is I want to take my family on a cruise great let's go out and find out how much suck Cruise is going to cost you know what I want to do David I want to eat my kids Disneyland great what's that going to cost I want to put a new kitchen in my home ok what's the kind of cost I want to buy second house the dream account is about doing things that's going to happen between now and retirement this by the way this little secret right here this dream account is probably what most people maybe you get the most excited about the way you make your dreams come true you fund it automatically so how this works by the way is once when it goes in your checking account you have money moved automatically from your checking account in all these cases it's being moved automatically from your checking account to your emergency account automatically from your checking account to an investment account for your dreams now where should the dream money go all depends on the length of time of your dreams if it's a short-term dream it's going to go in a money market account or a CT it's a longer-term dream 3 years it's going to go into a short-term bond fund if it's longer 5 years then you'll start looking at things like stock funds or balanced funds and all buses out for you later in additional training but the key here the key identifying a dream and funding for automatically which takes me to number five number five is your credit cards number five is and most people do not do this by the way while I'm training you for your credit card bills should be paid automatically and I want to go through exactly how to do this so here's what you do let's say you've got a credit card right now let's do on the fifteenth of the month what I want you to do with your automatic online checking account is I want you to set it up with your bank to have money moved from your checking account the minimum payments required automatic should be paid to that credit card so let's say as an example your minimum payment would be $100 a month you want to have that minimum payment automatically paid two days before it's due now I want you to pay more than the minimum but the reason I want your minimum payment paid from your checking account is I don't want you to have late fees I don't want you to have first of all I don't want you to be late I don't want you to have late fees this is this is like a million dollar tip here your credit score which I'll talk about later in the training it is simply critical when it comes to your personal financial life right now if you're late on a bill you have a great credit score right now you'd be watching me and your credit score could be 720 or above which is phenomenal do you know that if you're late on one or two bills within 30 days your credit score can drop 50 to a hundred points the biggest place I see people get wiped out with their credit scores is on their credit card bills there's no reason for that to happen if you've got the money at a bare minimum making minimum payments automatic in your credit card then come in and transfer the rest of the money to pay that bill off next I get to pay the rest of your bills automatically so regular bills let's go through some of your regular bills rent car phone movie memberships gym utilities mortgage I'm going to make a list after this video is over go through your checking account your credit card accounts I want to look at what bills are you paying regularly every single month it's the same bill these bills should all be automated now how do you automate them there's a couple ways you can do this you can have your again checking account automatically transfer money to the specific dollar amounts that you need or you can have these accounts pull the money from your checking account the key here with these regular bills again so you don't have late fees and you don't have over-the-limit fees is that you make it all automatic my entire financial life 90% of my financial life both personally and professionally the bills are automated so if you go to my you know literally my house I can go out of town for months and I need to worry about the bills why because my mortgage is automatic my utilities automatic my phone bills automatic my cable bills automatic everything that's happy my life personally its automated and then with my business also very similar most of my pills are automatic so go back to your bills automate those and then the last category here is charity the last category is giving money to charity automatically and I talked about this in the first training video what we found over time is that people who build the greatest wealth are people who gave before they were rich I think it's so important that part of your money does it's coming in it also goes out to help people alright so look I know I just gave you a lot here but this is the great part about this I just chunked it down for you this by the way this took 20 years to get mastered so I just gave you I just downloaded 20 years of knowledge and the reason this is so powerful is you can do this you can literally put these seven buckets in place and make your financial life automatic in less than a few hours so below me I've got a tool for you you can click on it you can download this worksheet and then you can also download the instructions on how to make the financial life automatic again I call this automatic millionaire 2.0 so download it enjoy it if you've got questions or comments please post them below because I want to hear from you and in the next training video I'm going to cover the top ten questions around how to build wealth that's sustainable for life and I'm going to break down and bust out the biggest myth about money that people have right now thank you so much for watching live rich finish rich start today I'm David block thank you for tuning in

Channel: David Bach

Views: 289,055

Rating: 4.7912679 out of 5

Keywords:

Id: fpARUOMlOYE

Length: 12min 44sec (764 seconds)

Published: Sun Dec 25 2016