David Bach is one of America’s most trusted financial experts.
Recently, he broke down:
• Why saving $27 a day beats earning more money
• The hidden system that keeps most people in debt
• Why homeowners are ~40× wealthier than renters
His 10 key insights:
Recently, he broke down:
• Why saving $27 a day beats earning more money
• The hidden system that keeps most people in debt
• Why homeowners are ~40× wealthier than renters
His 10 key insights:
David Bach has advised millions of Americans on building wealth.
He spent 9 years at Morgan Stanley, wrote books that sold 10 million copies, and helped ordinary people become millionaires.
His 10 insights challenge everything you think about money:
He spent 9 years at Morgan Stanley, wrote books that sold 10 million copies, and helped ordinary people become millionaires.
His 10 insights challenge everything you think about money:
1. Homeowners are worth 40x more than renters.
Average homeowner: over $400,000 net worth.
Average renter: $10,000 net worth.
Buy a $200,000 home with $40,000 down. It doubles to $400,000.
You made $200,000 on $40,000 invested.
Renters can't access this.
Average homeowner: over $400,000 net worth.
Average renter: $10,000 net worth.
Buy a $200,000 home with $40,000 down. It doubles to $400,000.
You made $200,000 on $40,000 invested.
Renters can't access this.
2. $27.40 per day turns into $4.4 million.
That's $10,000 per year.
Invest it for 40 years at 10% returns.
Most people waste exactly this amount on coffee, takeout lunches, and subscriptions they never use.
Find your $27.40. Redirect it. Get rich.
That's $10,000 per year.
Invest it for 40 years at 10% returns.
Most people waste exactly this amount on coffee, takeout lunches, and subscriptions they never use.
Find your $27.40. Redirect it. Get rich.
3. Make your savings automatic or you'll fail.
Bach's millionaire clients didn't use discipline.
They called HR day one and set up automatic 401k transfers.
Money moved before they saw their paycheck.
6 months later, they forgot it was happening.
Bach's millionaire clients didn't use discipline.
They called HR day one and set up automatic 401k transfers.
Money moved before they saw their paycheck.
6 months later, they forgot it was happening.
4. Pay yourself the first hour of every workday.
That's 12.5% of gross income into retirement.
Start at 1% if that feels impossible.
Increase by 1% monthly.
By December, you'll save 12% without noticing.
That's 12.5% of gross income into retirement.
Start at 1% if that feels impossible.
Increase by 1% monthly.
By December, you'll save 12% without noticing.
5. Over 650,000 Fidelity 401k participants are millionaires.
What they did:
• Saved 14% automatically
• Invested 70% stocks, 30% bonds
• Never day traded
• Left it alone for decades
Copy this formula.
What they did:
• Saved 14% automatically
• Invested 70% stocks, 30% bonds
• Never day traded
• Left it alone for decades
Copy this formula.
6. Attack your smallest debt first, not highest interest.
Bach had $12,000 in credit card debt after college.
List cards smallest to largest.
Make minimum payments on all.
Put extra money toward smallest balance.
Momentum beats math.
Bach had $12,000 in credit card debt after college.
List cards smallest to largest.
Make minimum payments on all.
Put extra money toward smallest balance.
Momentum beats math.
7. Make 13 mortgage payments yearly instead of 12.
One extra payment cuts 5-7 years off a 30-year mortgage.
On a $200,000 loan, you save $50,000 to $100,000 in interest.
Increase monthly payment 10%.
Tell your bank to apply extra to principal.
One extra payment cuts 5-7 years off a 30-year mortgage.
On a $200,000 loan, you save $50,000 to $100,000 in interest.
Increase monthly payment 10%.
Tell your bank to apply extra to principal.
8. Track every dollar for 7 days.
Bach's $100,000 earners couldn't account for 30% of income.
Not rent or car payments.
$9 coffees, $31 cocktails, $25 lunches.
Write it down.
You'll find $500+ monthly you didn't know you wasted.
Bach's $100,000 earners couldn't account for 30% of income.
Not rent or car payments.
$9 coffees, $31 cocktails, $25 lunches.
Write it down.
You'll find $500+ monthly you didn't know you wasted.
9. Buy index funds and hold forever.
VTI returned 14% annually over 10 years.
$10,000 in QQQ 20 years ago is worth $170,000 today.
The market has averaged 10%+ for over a century.
But only if you don't panic sell.
VTI returned 14% annually over 10 years.
$10,000 in QQQ 20 years ago is worth $170,000 today.
The market has averaged 10%+ for over a century.
But only if you don't panic sell.
10. Boring investments make you rich. Exciting ones make you broke.
The wealthiest at Morgan Stanley owned:
• Index funds
• Real estate
• Bonds
No day trading. No crypto. No meme stocks.
If your portfolio excites you, you're doing it wrong.
The wealthiest at Morgan Stanley owned:
• Index funds
• Real estate
• Bonds
No day trading. No crypto. No meme stocks.
If your portfolio excites you, you're doing it wrong.
Money buys freedom, not happiness.
Health, love, and time with people you care about matter more.
But you need financial security to focus on what matters.
Start today. Make one thing automatic. Let compound interest work.
Health, love, and time with people you care about matter more.
But you need financial security to focus on what matters.
Start today. Make one thing automatic. Let compound interest work.
Thanks for reading!
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