Tuesday, June 13, 2006

One day I will be an automatic millionaire

This book was a real eye opener. The lessons in this book are not new. However, the language was simple which makes it easy to follow.

So what did I learn?

Lesson 1.
Automate, Automate, Automate.
The basic premise here is to set all the finances on auto pilot. This will make life less complicated. Recently I switched all my regular bills to online bill pay. No more writing checks and putting them in the mail. I even went a step further and set up some bills on a recurring payment schedule.

Lesson 2.
Pay yourself first.
The goal here is to set up a retirement account and pay yourself first. The contribution goal should be a comfortable amount and increased over time to more than 15%.
Here is one lesson that is easy, and I have already partially accomplished. My pre-tax contribution is 6% of my salary, which has a dollar for dollar company match. This puts me at a 403b contribution of 12%.
My contribution will be increased to 15% once all my debt is paid off.

The second part of 'pay yourself first' is to set up an emergency fund. This is a goal that is already in progress. As of today's date there is $347 in an HSBC emergency account.

After reading this book, I feel a little better about my financial life.

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