David Bach is a very prolific money expert and the first guru listed (alphabetically) on our Top Money Guru poll .
He is most well known for two major ideas in personal finance. The first one, which I’m a firm believer of, was captured in his book titled The Automatic Millionaire. The basic idea behind the automatic million was that by automating your savings, you could grow your nest egg considerably through your decades of work. To many personal finance readers, this doesn’t seem like mind blowing information. However, when you think about the simplest way to “save automatically,” what do you think of? Probably a 401(k), if your employer offers it, or some other kind of retirement plan.
Unfortunately, retirement plan participation has always been fairly low. In 2011, it was just 39.7% . If you only include full time workers, it goes up a little bit but ultimately very few people can or choose to participate. So while it may not be a novel idea to you or me, it’s still an important one.
Now, the next major idea he has is one that has a sexier name – the latte factor. It’s really a corollary to the automatic savings idea but focuses on spending. If you spend $3 a day on coffee each morning, on your latte, then that can really add up over the years in terms of lost savings. Brown bag your lunch to save $10 a day and put it towards your retirement.
In addition to those two major ideas (and books), he’s published a grand total of eleven books (many of those are on bestseller lists). His first book was Smart Women Finish Rich and it stayed on bestseller lists for many many years. Trent at The Simple Dollar has a very detailed review of that book .
- Twitter Followers: ~13,000
- Facebook Fans: ~27,000
- # of Books: 12
What do you think about David Bach?
(Photo: Wikimedia Commons )