How to Become a Millionaire - Literature review Example

number MILLIONAIRE Chapter One: Meeting the Automatic Millionaire In this chapter, the introduces the way hemeets his first automatic millionaire, when he was still in his mid-twenty ages (Bach 11). The author claims that someone’s current position doesn’t matter whether he or she is going to make it to a millionaire. His talk of the conservation that he held with Jim McIntyre, who was his student, and at the same time a manager for a local utility company. Jim McIntyre later, together with his wife too, made a visit to Mr. Bach’s office so as to have the assistance of a Mr. Bach in reviewing their family’s financial status. The author got surprised when he realized that the couples were very rich, full of both assets that can be easily combined into cash and other fixed assets as well. From this point is where the author got a challenge to himself and later realized that he was lagging behind. He therefore decided to make some steps so as to improve his economic position, especially at his age, in comparison with Jim McIntyre who was mid twenty aged. Personally, I felt challenged when reading about Jim McIntyre, being in the same age set with me and he is a millionaire yet I am not. I learnt that to be a millionaire, you have to successfully plan your economic life while you are still young. The last thing I learnt in this paragraph is that, no matter what financial and economic status an individual attain, education will always be a necessity in life. Chapter Two: The Latte Factor: Becoming an Automatic Millionaire In this chapter, the author talks about what it entails one to become a millionaire. He says that one can become a millionaire by just having a few dollars a day (31). This chapter illustrates that for one to achieve a higher economic class, he or she is not hindered by the amount he or she earns. The main problem or a factor determining the change in economic status is how much the individual saves on daily basis, from his or her daily earnings. Under savings, there are two fundamental factors that matter a lot. The first one is how to save your money, perhaps in the form of investments. The second one is where you are going to save the money or undertake the investment. This has really challenged me that I need to undertake some form of savings. I can later invest this small savings and re-invest back the profits to increase my capital base. Chapter Three: Learning to Pay Yourself First In this chapter, the author has tried to illustrate that for one to successfully become a millionaire, he or she must learn to pay his or her self first (57). The message from this chapter is that whenever you are an employer or a director of a certain company or business organization, you must set for yourself a salary scale. When managing your own business, you must have invested your resources including time and knowledge. The author therefore suggests that you have to consider yourself the top most employees and reward yourself the best salary. Also, when processing the salary of your employees, your name should be the first one to appear on the pay roll. Here I learnt that if you are an entrepreneur, you should not only earn profits of the business, but pay yourself a good salary as well. One should only start celebrating the profits after having paid him or herself a deserving salary. Chapter Four: Now Making It Automatic In this chapter, the author is illustrating that after one has understood the significance of including him or herself in the pay role, then one can make an investment step. In this chapter, the author talks of a survey that was conducted in America the year 2002 by PlanSponsor.com. The survey showed that those investors who didn’t include themselves in the pay roll later regretted a lot. Later on they learnt they realized what this exclusion cost them and decided to change minds. This made them to be more dedicated to the daily business activities which finally improved their organizations performance. In this chapter, I came to realize that when you pay yourself first, it makes you more dedicated in your own organization which later leads to goals and objective achievements. Chapter Five: Automating for a Rainy Day In this chapter, the author illustrates the importance of automating for a rainy day and sleeping well at night if the action you took were the right one (135). In this case, the author is making it clear that you have to invest nearly all your time in the particular area you believe will improve your economic standards. For one to be success full in time, the individual has to sacrifice a lot and give dedication to the desired path for acquiring success. To become a millionaire, you should only get yourself to sleep after properly strategizing on your investments during the day. I learnt that, to become a millionaire, I should always lay my strategies well and make sure that every sector is performing as per the expectation. Chapter Six: Automatic Debt Free Homeownership In this chapter, the author is talking about some of the reasons he believes one should consider when searching for employment (159). The author believes that, to be a millionaire, an individual must be staying in his or her own home and compound as well. When working for the government, you are likely to be given a home or a house. If not housed by the government, then some house allowances are directed to your pay slip. Renting a house means that you always hold yourself liable at the end of every rent-paying period. In this case you should have your own home so as to get space for development. Having a home can motivate one towards investing in real estate’s which indeed a good paying investment it is. Chapter Seven: The Automatic Debt Free Life Style In this chapter, the author believes that debt can be one of the major factors forcing us to work a lot, without necessarily having some key arrangements for ourselves (193). The chapter illustrates that, for one to be a millionaire, he or she must be a debt free individual. Having debts makes someone to have less focus on personal development. Some of the debts may be compounded into interest making their payments to be a hindrance to development. This has taught me that I really need to clear my debts and have a debt-free lifestyle. Due to this I will have time to plan myself and account for my resources well. Chapter Eight: Making a Difference with Automatic Tithing In this chapter, the author says that have an automatic tithing can really illustrate as well as bringing a difference in our lives (211). This is perhaps the final step of becoming a millionaire. In this case, you give tithes to the church through the online or through the church’s tithe ATM. This involves giving back to the lord as thanksgiving for, enabling you reach success. Conclusion I have liked the book through the various guidelines and advices. It gives a number of paths that one can follow to become a millionaire. There is one thing I have disliked about the book. The book assumes that all the readers have the same economic backgrounds, which can never be. In my life am planning to implement some of the ways that can make me rich. Am planning to invest in safe, and later invest in real estates. A financial quote liked from the book is, “You should know how to pay yourself first”. It has really motivated me to invest in private business. Works cited "The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich." Publishers Weekly 250.45 (2003): 52-3. 25 Feb. 2015. Read More