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

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 :-)

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

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.

hey buddy, where ti start to be like you multi property owner? thanks

@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.

Me too!

...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.

Wot to do at 50 on disability benefits??

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)

So "god" is our emergency fund? I hope you've rethought that plan in the last 2 years...

That is so true

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.

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.

Yes! 👏 I was trying to think who he sounds like...Gary Vee!

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.

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

So glad you got your job back!! 🙂

Thank you eelamist89! Now, I just need to figure out how to edit it:)

well done. Your proving slowly but surely wins