Not buying a home is the single biggest millennial mistake
While opponents of homeownership claim it's "the American nightmare," self-made millionaire David Bach is doubling down on his faith in real estate. He thinks that not prioritizing homeownership is "the single biggest mistake millennials are making.
" Buying a home is "an escalator to wealth," he tells CNBC. Young adults in particular aren't hopping on this escalator, and it's a costly mistake, Bach warns: "If millennials don't buy a home, their chances of actually having any wealth in this country are little to none.
If you want to get rich, you have to learn to pay yourself first. But just how much of your earnings should you set aside for retirement and other savings to ensure lifelong wealth? For one self-made millionaire, the magic number is 20%.
"Today, my wife and I each strive to pay ourselves the first 20% of our gross income," writes David Bach, who became a millionaire by age 30, in his book, The Automatic Millionaire. "That may sound like a lot, but because I've worked up to it gradually over the course of fifteen years, it's become our new normal".
I recently caught up with David Bach, who has written multiple New York Times bestselling books such as The Automatic Millionaire and Start Late Finish Rich. His latest book is called Debt Free for Life: The Finish Rich Plan for Financial Freedom.
In total, he has more than seven million books in print, translated in over 19 languages. Bach has appeared several times on The Oprah Winfrey Show and is a reoccurring guest on The Today Show.
A self-made millionaire says the single most effective way to get rich is a simple decision most people don’t make
"If you want to be rich, all you have to do is make a decision to do something that most people don't do," writes David Bach, who became a millionaire by age 30, in his book "The Automatic Millionaire." That decision is to pay yourself first.
"What most people do when they earn a dollar is pay everyone else first," Bach explains. "They pay the landlord, the credit card company, the telephone company, the government, and on and on.
David Bach, an expert on having more money, is the author of seven consecutive national best sellers including two consecutive #1 New York Times best sellers, Start Late, Finish Rich and The Automatic Millionaire. He is regularly featured on television and radio as well as in newspapers and magazines.
Bach continues to appear as a featured money coach on “The Oprah Winfrey Show's” runaway hit series, “America's Debt Diet.” Bach is a featured contributor and columnist with Redbook magazine and on Yahoo!, where his column, “The Automatic Millionaire with David Bach” appears biweekly.
Earlier this year, I spoke with David Bach, an expert on having more money. He is the author of seven consecutive national bestsellers including Stay Late.
Finish Rich and The Automatic Millionaire and continues to appear as a featured money coach on The Oprah Winfrey Show‘s runaway hit series, “America’s Debt Diet” and as a contributor and columnist with Redbook magazine and on Yahoo! Each Monday, I’m going to share an interview from our archives from my weekly show, “Change Nation,” that I think you’ll learn something from. Since we are all a bit nervous about our money.
Get yourself out of credit card debt and start over. If you are one of the estimated 50 million Americans who are drowning in credit card debt, know that while it may not be easy you can get out of debt.
Figure Out How You Got in Credit Card Debt in the First Place Ask yourself how you got there, be honest. Did you buy things you wanted or things you needed? Recognize that whatever got you into credit card debt is going to keep you there if you don’t change how you spend money.
Research has shown that financial disagreements are a key predictor of divorce and it’s not hard to see why: most couples don’t tackle tough conversations about money until the the bills arrive or they’re dealt a financial blow. Instead of waiting for the worst, Smart Couples Finish Rich author David Bach suggests couples pencil in a handful of “money dates” throughout the year.
“A money date gets the two of you together when you’re ready to have a conversation about money,” the finance expert told Arianna Huffington. “The idea is you set aside the time to do it,” he adds.
Couples who are walking down the aisle this summer may want to set up a financial date night or at least start talking as a couple about where the money is going. Couples are inundated with all sorts of advice about how to keep the spark alive.
But how do you keep the sparks from flying when it comes to managing the money to pay the mortgage, cover college tuition, and keep an eye on retirement? How do you even get a conversation going when money remains a taboo subject for many families? "Most couples don't start talking about money until there are bills to pay," said David Bach, author of "Smart Couples Finish Rich" and vice chairman of Edelman Financial Services. But it's essential to track the cash coming in and the cash going out, long before the children head off to college or one spouse leaves the workforce to retire.
David Bach, founder and chairman of FinishRich Media, has been in the financial planning business for over 20 years and has authored nine New York Times best-selling books. including one of my favorites, Smart Women Finish Rich.
(I read this years ago when it first came out, and it’s evergreen advice!) Bach recently completed a 60-day tour for his Smart Couples Finish Rich financial workshops and shared with me some of the common, but fixable financial planning mistakes even high-earning executives make: Omitting Activities Entirely Bach has advised executives who ably plan and run million- and billion-dollar businesses without financial plans for themselves. It’s a case of the cobbler with no shoes.
Did you enjoy that Venti Java Chip Frappuccino with an extra shot of espresso this morning? Or did you skip the branded jug of indulgence and enjoy a lunch out during your workday instead? No matter how insignificant one of your daily expenses may feel. the numbers don’t lie.
Every dollar you spent on a discretionary item had the potential to increase your net worth — probably more than you think. A deeper look at how purchases add up over time reveals why cutting small expenses is often promoted as a popular way to improve your finances.
Determine who is going to pay which bills so you don't accidentally miss any payments. Discussing your personal finances, spending patterns, and financial plan with your partner is crucial.
"Dealing with financial matters is something any couple can do, but you've got to do the job yourselves, or it just won't get done," writes David Bach in his book "Smart Couples Finish Rich." "If the two of you don't make your finances a priority, they won't be one.
It has been a month since I got married. And of course one of my goals is for our starting family to have a solid financial plan so we can ‘finish rich’.
Now I know a LOT about personal finance; but when it comes to family finance, I admit to having minimal personal experience. So I read the book “Smart Couples Finish Rich” by David Bach and applied the exercises there.
According to self-made millionaire David Bach, you don't have to earn a lot of money to get rich. You don't even need remarkable willpower to build a fortune.
Bach exposes these misconceptions, and more, in his book "The Automatic Millionaire." Before you write yourself off as an "average earner," consider these common misconceptions Bach outlines about money: 1.