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The Automatic MillionaireFor Entrepreneurs

Joe Polish Interviews David Bach, Best-Selling Author

ABOUT JOE POLISH

Joe Polish’s Tempe, Arizona office — headquarters for Piranha Marketing — is often

referred to by marketing insiders as “action central” for much of the entrepreneurial

world. Though he made his fortune in an almost invisible niche by telling carpet

cleaners how to crush the competition and turn their small local businesses into

money-churning machines, he is now among the most well-known, respected,

“complete marketing geniuses” in the world.

Consulting clients from many different countries each happily pay up to $10,000 a

day just to hear his advice. His “boot camps” attract convention-sized audiences full

of famous entrepreneurs and many of the “superstars” of marketing and advertising.

In a business environment bristling with false prophets and bad advice, Joe’s

unique mix of real-world experience and stunning financial success has earned

him a spot among the most trusted experts alive. His one-of-a-kind recorded

interview series, “The Genius Network” is a “Who’s Who” of super-savvy

marketing and advertising brilliance.

No one refuses an interview with Joe. He has the gift of gab and the insight of a

business veteran who’s earned his success. The “best in the biz” seek him out.

He knows the good, the bad, and the ugly of what’s working — and what’s not

working — on the Web, in infomercials, in direct response ads and direct mail,

in niche marketing, in personal coaching and in every critical area of the

entrepreneurial landscape.

The business world is moving faster than ever before. Staying close to the action

means paying attention to Joe Polish and Piranha Marketing.

http://www.GeniusNetwork.com

mailto:[email protected]

ABOUT DAVID BACH

David Bach is the author of the national bestsellers, Smart Women Finish Rich, Smart

Couples Finish Rich, The Finish Rich Workbook, as well as 1001 Financial Words

You Need To Know.

His brand new book, The Automatic Millionaire was just released this past January.

With already over 700,000 copies in print, it has become an instant national

bestseller, hitting #1 on The New York Times, The Wall Street Journal, and USA

Today bestseller lists, as well as an international #1 bestseller in Canada.

Bach is the creator of the FinishRich™ seminar series, which highlights his quick and

easy-to-use financial strategies, from which millions have benefited. In just the last

few years, over half a million people have attended his Smart Women Finish Rich™

and Smart Couples Finish Rich™ seminars, which have been taught throughout North

America by thousands of financial advisers in over 2,000 cities. Each month, through

these seminars, men and women learn first hand how to take financial action to live

a life in line with their values.

Regularly featured on television and radio, as well as in newspapers and magazines,

David is a regular contributor to CNN American Morning and just recently made his

first appearance on The Oprah Winfrey Show, where he shared with the world his

strategies on becoming an automatic millionaire. In addition, David has appeared on

ABC's The View, NBC Weekend Today Show, CBS The Early Show, Fox News

Channel's The O'Reilly Factor, Men Are From Mars, Women Are From Venus,

CNBC Power Lunch, CNN and MSNBC. He has been profiled in major publications

including The New York Times, Business Week, USA Today, People, Readers Digest,

Time, The Financial Times, The Washington Post, The Wall Street Journal, The Los

Angeles Times, San Francisco Chronicle, Working Woman, and Family Circle.

Bach is a Money Coach to America Online (AOL keyword: David Bach) and hosts

his own nationally syndicated radio show Live Rich with David Bach launched on

the Sirius Network and airing weekly on Saturday afternoons.

He has recently completed his sixth book, titled Start Late, Finish Rich. David Bach

lives in New York, with his wife, Michelle and newborn son, Jack.






INTRODUCTION

Joe: Hello, this is Joe Polish, President of Piranha Marketing and founder of The

Genius Network Interview Series.

I’m so please to welcome an extraordinarily bright and enthusiastic and guywho is doing all kinds of wonderful things to help millions of people all overthe world. His name is David Bach.

Dave has had a really incredible week. Let me get this right, Dave. You’reon Oprah on Tuesday, CNN on Friday, you’re on The Today Show onMonday with Matt and Katie. You have the #2 book, right underneath BillClinton, and you’re #3 on The New York Times bestseller list.

Is that all accurate?

David: It’s been a great week. If you can’t have the number one spot and you’regoing to lose it to somebody, it would be reasonable to lose it to Bill Clinton.He’s got 1.5 million books coming out in the first day.

So it’s been a great week, and it’s really been fun. I had a blast withKatie and Matt. Oprah has just been incredible. I’ve been on the Oprahshow twice this year. I’m just incredibly grateful. It’s just been anincredible, incredible year so far.

Joe: I’m so happy for you. I’ve read your books. They are awesome. I’vebought a couple hundred copies of The Automatic Millionaire to give outto some of my best clients.

I think what you’re doing is extraordinary, and I’m really looking forward tohaving you share some of your insights.

I’m going to give a real quick bio on you. If there is anything I don’t cover,please fill in for me. Then we’ll get into some questions that will really helpeveryone with making a lot more money and doing things right.

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DavidBach ishelpingmillions allover theworld






Okay, here goes. David Bach is a New York Times best selling author with

The Automatic Millionaire, Smart Women Finish Rich, and Smart

Couples Finish Rich.

We’re going to talk about the concepts in The Automatic Millionaire. It

became an instant national bestseller, hitting The New York Times,

TheWall Street Journal, and USA Today bestsellers lists. It’s also an

international bestseller in Canada.

Dave is all over the place. He’s regularly featured on television and

radio, as well as in newspapers and magazines. He’s a regular

contributor to CNN American Morning and just recently made his second

appearance on Oprah. He’s shared his strategies on becoming an

automatic millionaire and also on becoming a millionaire couple, based

on his bestselling book Smart Couples Finish Rich.

He also has an awesome website with a ton of resources that you could get

a lot of value out of at www.FinishRich.com. He’s also done his own radio

show, Live Rich With David Bach, for quite a while now along with being

the money coach to America Online. The AOL keyword is David Bach.

What else have I left out ?

David: Well, I’ll tell you, the neatest thing I’ve done here. I don’t know that I can

take credit for it, but I had a baby. My wife and I just had a baby. So I

have a son now. His name is Jack.

I’ll tell you, once you have a child, it gives you even more focus and more

drive. It’s just an amazing thing. I recommend it highly, Joe. I always

wanted to get you married, but I highly recommend having a child.

Joe: That’s awesome. This has been quite an incredible year for you. You must

be on cloud 9. This is great.

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Having achild givesyou morefocus anddrive






http://www.FinishRich.com

David: Joe, it has really been great. The thing that’s amazing to me is we’re actually

at #1 on all of those lists — The New York Times, TheWall Street Journal,

USA Today, Canada, Business Week.

Within weeks of the release of Automatic Millionaire, we hit number one on

every one of those bestseller lists. The message in the book is a simple

message. It really goes to show that so few people have really been given a

basic financial education.

That’s what I’m trying to do is really give people the tools that should be

taught at home and school, but weren’t. As a result of not having that

education, so many people are living paycheck to paycheck. They really

need to know the road map.

I’m trying to give people a road map to being not just wealthy, but really

financially free, so that you’re able to live a life in line with your dreams and

your values. When it’s all said and done, it’s about what’s most important to

you. It’s really not the money, it’s what’s most important to you.

Joe: Right. Absolutely. I’ve read a lot of books on financial stuff. In my life,

fortunately, I’ve been able to do pretty well financially, and I’ve learned that

there’s an enormous difference between making money and managing money.

When I read your book for the first time, it gave me an enormous insight and

really showed me a lot of errors that I was making.

All the publicity you’re getting is not happening by accident. It’s happening

because you have a very powerful message that is resonating with a lot of

folks, and you’re helping an enormous amount of people out there.

You really do have a message that makes a lot of sense. I’m really glad

that we are doing this interview and I’m able to share this with my

Genius Network members.

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There’s anenormousdifferencebetweenmakingmoney andmanagingmoney






THE FIVE QUESTIONS THAT CAN DETERMINE, WITH 90%CERTAINTY, IF YOU WILL BE A MILLIONAIREJoe: I want to really just dive in. I don’t have an enormous amount of questions

for you, but I do want to focus on five questions that can determine, with90% certainty, that someone can be a millionaire.

Could you kind of go through it, starting with the main thing that you dosuch a good job talking about, which is paying yourself first, and then go inwhatever direction you want to go in. I know there’s a lot of informationyou’ve got to share.

David: I would love to. I’m going to say that we’ve known each other a whilenow. I think we first met back in 1997, actually in Dan Sullivan’sStrategic Coach program.

Joe: Exactly.

David: It’s fun to see your success. I’m a fan of your Genius Network. I’ve listenedto so many of your audiotapes myself. So it’s really a kick for me to be onthis audio program with you and be able to give back.

I want to share with you the five questions that can determine, with 90%certainty, if you’ll be rich. I’ll give you the background on these questions.

I just did a speech in Ottawa, Canada with Dr. Phil and Ken Blanchard, whoI think you’ve probably interviewed. We had 5,000 people in the room. Itwas an amazing event.

I got on stage and I said, “The reason that I ask these questions is peoplecome up to me every single day. They come up to me in the airport, theycome up to me at the book signings, they come up to me after myspeeches and they say, ‘David, what’s the secret to being rich? Can youtell me if I’m going to be rich?’”

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You canknow ifyou willbecome amillionaire






What I realized is that, first of all, there really is a secret. People don’t wantto know all of the stuff that goes along with financial planning. They justwant to know, “Give me the one thing,” and that’s what’s in The AutomaticMillionaire book, and I’ll share it with you now.

I can really tell, in three minutes, if someone is going to be rich by askingthem five questions. So here’s the five questions:

Question #1 — Do You Want To Be Rich?

Now, people laugh when you ask that. Do you want to be rich?

What I really mean by that is not, yes, of course I want to be rich, but whydo you want to be rich? Why do you really want to have wealth? It’s reallyimportant to first ask yourself that question, and to tell yourself the truth.

If it comes back, “You know what? I just want to have a million dollars so I canhave a million dollars,” that’s fine. But in my experience, having worked withreal-life clients for almost a decade, who came to me with wealth, my experiencehas been that people who become really wealthy, people who have over a milliondollars, didn’t have a goal of “I just want to have a million dollars.”

They had something bigger that they wanted to do with their life — it wassomething that was really important to them, from their values.

For instance, in my case, I show a picture of Jack in my seminars and say,“This is what’s important to me. I want to make sure that Jack’s going tobe protected and that he’s going to have money for school, and if anythinghappened to me, my family would be safe and my wife, Michelle, wouldbe well-taken care of.

So being clear on why you want to have financial security, what’s reallyimportant to you, is really where it all starts.

Your audience is mostly entrepreneurs, right?

Joe: Yeah, mostly entrepreneurs.

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You mustbe verysure ofwhere youwant to go






David: So often, people become entrepreneurs, and I fall into this boat too, youbecome entrepreneurs because you can’t work for anyone. Mostentrepreneurs are really not great employees. After you’ve been anentrepreneur for a while, you’re actually not hirable anymore.

Joe: That’s true.

David: Seriously, most entrepreneurs have to be successful because no one’s goingto ever hire them again. They’re now unemployable.

Joe: Exactly.

David: I say that in a good way. It’s kind of funny, but it’s true. So when you’re anentrepreneur, you need a business to work, but you also need to make surethat all this hard work that’s going into your business is ultimately producingsomething that you’ll get to keep.

I think the saddest thing that I see for most entrepreneurs is they work really,really hard in their business, and at the end of the day they keep putting allof the money they’re making back in their business.

Years go on and years go on, and they sacrifice their time with their family, andthey don’t care of their physical health. And all of a sudden, something happens— a hiccup in the economy or a hiccup in their business — the business fails,and they have no money in the savings. It happens more often than not.

So one of my goals is to get entrepreneurs off the fat and really say, “Youknow what? If you’re going to go spend 40, 50, 60, 70 hours on yourbusiness, let’s make sure that that business is making you financially secure

.

Joe: Exactly. It’s actually so sad to see that. Entrepreneurs, in my opinion, arethe ones that literally create the economy. They are the workforce, they’re

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If you’regoing to gospend 40,50, 60, 70hours onyourbusiness, let’smake surethat thatbusiness ismaking youfinanciallysecure






the value-creators of the world that are providing jobs to everybody. It’shorrible to see somebody spend their whole life putting that effort intosomething and then literally lose it or just have nothing to show for itwhen it’s all said and done, which is why it’s so good about what you talkabout — finish rich.

If you really analyze FinishRich.com which is your website, which is somuch of your message, that’s really what it should be all about. That’s thereward for doing things right. And certainly, with money, you teach peoplehow to do things right.

David: With that, it’s also living rich. It’s both. It’s making sure that you’re livingrich, meaning not just financial but you’re living a life in line with yourvalues, what’s most important to you, you’re living your dreams, and thatyou’re also building financial security so that you’re able to continue to liveyour dreams, cinching yourself up.

Question #2 — Do You Pay Yourself First?

Question #2 is not so simple. It’s basically black and white — do you payyourself first? We had 5,000 people in the room. I said, “How many of youin the room have heard of this, do you pay yourself first?” Every single handin the room went up. I’m like, “Of course, you have. Everybody’s heard ofthis, just nobody does it.”

Right now, we have 74-million baby-boomers in our country. One in threeof them have nothing in savings. The average person in our country who’s50, has less than $25,000 in savings. We know that Americans andCanadians are not paying themselves first.

So the question becomes who gets paid first, typically, when you earn apaycheck? Well, obviously, when you earn a paycheck, the first person thatgets paid is the government. If you’re self-employed, the first persons whoget paid are your employees.

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Live a lifein line withyour values







Your employees get paid, you pay the government through federal and statetaxes, you pay payroll taxes, you pay overhead costs, you pay insurance costs.

What ends up happening is at the end of the month, in theory, if there’sanything left after you’ve paid everybody else, you pay yourself first.

I say in theory, because in theory it doesn’t work. In theory, you get to theend of the year and there’s nothing left at the end of the year.

Joe: Right.

Question #3 — The Government Gets Their Cut Of YourMoney… Do You?

David: So The Automatic Millionaire book teaches you that — in less than 90minutes, you can read the book and in less than 60 minutes you canimplement the entire plan — the first part of your plan is you have to payyourself first, automatically.

What that means is just like the government figured out that you can’tbudget…by the way, the government did figure this out, the governmentfigured out that Americans can’t budget. That’s why they don’t allow you toget your money first and then pay taxes at the end of the year.

Joe: There’s no discipline.

David: In the 20’s and 30’s, they used to run advertising, via marketing campaigns,to teach Americans to budget. The reason the government did this is becausethey needed Americans to save their money to pay their taxes.

Then they figured out, “Wait a minute! This is not working. Americans can’tbudget.” Somebody said, “Why don’t we take the money away from them,before they can spend it?” Somebody else said, “How can we do that?”

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People just don’thave thedisciplinethey should






Then they came up with the technology to pull money out of your paycheckfrom the employer – which everybody who’s listening is the employer, theyknow this – and that way, the government would get paid first. It was backin the 40’s that they did this. It was pretty revolutionary for back then.

They’ve now been doing it for 70 years and nobody thinks about it. Yourmoney’s taken from you automatically, before you can spend it.

What I suggest to any entrepreneur is that the first person who now gets paidfirst is them. That means as an entrepreneur, you need to put in place eithera 401(k) plan or a self-employed retirement account. The moment incomecomes in, a percentage of it has got to go directly, automatically, and putaway into a pre-tax retirement account.

I teach, in The Automatic Millionaire book, exactly how to set this up. Youcan set up a 401(k) plan or a SEP IRA. A SEP IRA, self-employed retirementaccount, can be set up in 10 minutes. A 401(k) plan will take about an hourto set it up for you and your employees. That’s really my secret is doing itautomatically. It’s paying yourself first. That’s how people get rich.

HOW TO PAY YOURSELF FIRSTJoe: Again, people have heard this before and there’s this gap between hearing it

and implementation. Why is it? Do you think, that most people don’t do it?Is it because they just don’t know any better or they just don’t realize thatit’s not going to work any other way?

You were in the financial planning and financial services business for years,and I’ve heard you talk about it and write about that in all of your yearsexperience, there was only one person who did it for like a couple of monthsand that’s it. Can you give some background on that?

David: You bet. I’ve been doing this since 1993. Back in 1993 and 1994, and reallyuntil recently, when you would meet with people and you’d say, “Let’s signyou up to save automatically, let’s have money go right from your paycheckdirectly into a savings account. Or let’s move it directly from your checking

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A SEPIRA, self-employedretirementaccount,can be setup in 10minutes.






account into an investment account, like a mutual fund. Let’s make it allautomatic. You won’t have to think about it. We’ll sign you up, and thenevery two weeks you’ll fund money easily.”

A lot of people find that frightening or used to find that frightening, because theywould go, “Gee, what if it doesn’t work? What if it takes too much money?”

Of course, it does work. People who have been doing this for decadesshow that it really does work. Think about the gym right now. Whenpeople join a gym, people take money automatically out of your checkingaccount or they debit your credit card. It’s the same idea, only you’re nowpaying yourself automatically.

Every time somebody would say to us, “I don’t want to do it that way. WhatI’ll do, Dave, is I’ll write you the checks and I’ll bring them into the office orI’ll mail them to you,” every single time. People would argue with me in myoffice about this. They’d say, “Dave, you don’t know me. I’m so disciplined.”

Nobody ever made it past three months. I had one client in 10 years savethrough writing checks beyond three months. The only ones who continuallysave are the ones who set it up automatically. Quite frankly, that’s becausethey just forget about it.

After a while, they’re saving automatically. Before they know it, they’ve gotthousands of dollars in savings, and then they have tens of thousands ofdollars in savings. Over time, over decades, hundreds of thousands ofdollars gets stashed in savings. Over their lifetime, they end up having overa million dollars in savings.

Joe: The proof in all of this, of course, is, for one, there’s many years I never didit, and you’re absolutely right. I had every intention of doing it, but I justdidn’t do it when things weren’t set up automatically.

Secondly, everyone who I know who is a very wealthy entrepreneur, whohas really saved money, who has really invested their money well, whoreally knows their numbers, they all do it automatically.

Third, people that are broke don’t do this. They can hear this message a milliontimes, but hearing it is one thing — actually applying it is a whole other.

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Hearing it is one thing —actuallyapplying itis a wholeother






That’s why I think it’s imperative that people read your book, The AutomaticMillionaire, because the message is behind the title. Set everything up sothis happens automatically, then you don’t have to rely on discipline andbudgeting and memory to do it.

David: The other thing is that it takes time. People are busy. They don’t have timeto write the checks and remember to do this.

So it takes the time off the table. That’s one thing that everybody’s got — alimited amount of time.

You saw the Oprah show. When we did the Oprah show, they asked me,“What’s in this book and what are you going to share with our viewers,” Itold them, “I want to teach America how to save automatically and paythemselves first, automatically.” The first response to me was, “That’s notreally new information.” I said, “No, it’s not new information, it’s justnever been explained well.

Joe: Right. Right.

David: We can go on the show together with Oprah and talk to America aboutpaying themselves first, automatically. If we can get Americans to save onehour a day of their income, we can change America. That is what we did.

We had 20 million people see the first show. The simplicity of the way Iexplained it on that show was so powerful that the producers at Harpo toldme that the next day employees at Harpo who saw the show signed up forthe 401(k) plan or increased their savings. They couldn’t get over it.

At Harpo, they can watch the show when they’re producing it.

Joe: In case someone doesn’t know, Harpo is Oprah’s company. It’s just Oprahspelled backwards.

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If we cangetAmericansto save onehour a dayof theirincome, wecan changeAmerica






David: She has like 300 employees, and they all have televisions sitting on theirdesk. So they’re actually able to watch the shows as the shows are beingproduced. If you work for Oprah, you’ve seen it all – and still, so manypeople that day increased what they were saving.

SAVE ONE HOUR OF PAY PER DAYI’ll say this to you wherever you are, in your car, at your work, it’s reallysimple. If you’re working 40 hours a week — and most entrepreneurs workmore than that — can you at least keep one hour a day of your income?

It’s harder for entrepreneurs to figure out. What do I actually earn now? Ifyou’re an entrepreneur and you don’t know, that’s a problem. You should know.

You should be able to take what you’re making and break it down into thehours a month you’re working or a week you’re working, and actually figureout. I’m sure you talk about this, Joe – figuring out what you make an hour.And that, at least, being put away automatically for savings.

THE LATTÉ FACTORThat kind of leads us to the third question, where people say, “I don’t carewhat you say, I don’t have the money.” We hear that a lot. That’s how Icame up with the latté factor, which you’ve heard me talk about a lot.

The latté factor is the simple idea that we all spend small amounts of moneyon little things. For instance, we get up in the morning and cruise down tothe local Starbucks, and get yourself a Grande Latté and a muffin. Guesswhat — you’ve just spent five bucks.

Maybe it’s not latté, maybe it’s cigarettes or bottled water, or going out everynight and having cocktails with your friends. Five to ten dollars is a lot ofmoney. Take $10 a day out over the month, and it’s over $300. You takethat out over a year, and it’s $3,600. If you and your spouse or significantother do that, it’s almost $7,500.

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You haveto knowexactlywhat youearn






All of a sudden, you start taking your latté factor and you go, “Wait aminute! What is it? If I took that money and redirected it towards savings,to pay myself first, depending on your age, how much money would I havelater in life?

The answer is if somebody’s in their 20’s or 30’s, they can have over amillion dollars at retirement. We show you, in The Automatic Millionairebook. Some people can have millions of dollars in savings by finding theirlatté factor and redirecting their wealth.

WHAT IS YOUR LATTÉ FACTOR?Joe: I have a couple of really close friends whose latté factor is buying DVDs

and CD’s, and all kinds of little things. They think, “It’s only a few bucks.”So you’re absolutely right.

I may sound like a broken record, repeating some of the things David issaying, but the point is he does a phenomenal job of making the message sosimplistic and understandable and easy to implement. He does a reallyfabulous job of communicating, which is why I think he’s reaching so manypeople right now.

David, even when I first read it in your book about tracking my spending fora week, I saying was, “I don’t really spend all that much. I’ve heard thisbefore.” I kind of watch what I do and how I spend. I don’t justpromiscuously spend money on everything. I tracked my spending a for aweek, and you’re absolutely right. People hemorrhage money, and they’renot aware of it.

The funniest thing is people complain about the high gas prices as they driveto Starbucks to spend $4 on a few ounces of coffee. It’s amazing. People dohave the money, if they really look at where it’s leaking out. So the lattéfactor is a great concept.

FIND OUT HOW MUCH YOU CAN SAVEDavid: I appreciate that. It’s funny, too. Go to FinishRich.com. We have an area on

my website where people share their latté factor story. What I tell you in The

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Peoplehemorrhagemoney, andthey’re notaware of it







Automatic Millionaire is, for one day, track your expenses. Then go back tomy website. We have a latté factor calculator, where you can put in here’swhat I spent, what if I saved this money? What would it be worth?

We have a ton of latté factor success stories on our website, and every one ismore amazing than the other.

I’m looking at my website right now. Here’s a woman who says she has amuffin every morning that costs $1.58. She adds to that. She says, “In 10years, I realized that if I invested that, I would have $15,612. In 50 years(I’m only 21) I would have $838,348.”

Joe: Wow!

David: She says, “I sure wish I had started this earlier.”

We showed this on Oprah, where there was a gal who had spent like $1,100on not just lattés, but on getting her nails done and giving wine and cheeseparties and getting massages, and all this stuff. We showed her that if shesaved just seven dollars a day, what it would be worth. It would be worth aquarter of a million dollars.

Then we said, “What if you saved all of this latté factor money? How muchwould you have?” It was like well over $2 million in savings.

Oprah actually rolled out a tray with $282,000 cash, live, in front of thiswoman. I think she almost had a heart attack when she saw it. I couldn’tbelieve it, either.

Joe: Yeah, it was great. Let me say something, too. You’re not telling people thatthey can’t go out and have a latté or they can’t go out and have fun everyonce in a while. You’re really saying it’s not about that you can’t go out andenjoy life, it’s the way that some people do their spending, it’s just insane,the way they throw money away.

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David: Absolutely. In fact, it’s really just a metaphor to make you realize you musthave some extra money that you could save, and that you really could saveone hour a day of your income.

DO YOU SPEND EVERYTHING YOU EARN?David: What we tend to think is that if we just make more money, then we’ll be

wealthy. If you’re an entrepreneur and you think, “Once I make $100,000,then I’ll start saving.” And you say, “Gosh, once I make $150,000, then I’llstart saving. If I could just make $250,000 a year, that’s got to be the magicnumber. Then I’ll start saving.”

I have a friend of mine who’s been telling me things like that since the dayhe was making $50,000 a year out of college. I see him every Christmas, andhe says to me, “I made more money, but I can’t save anything.”

Now, he’s making $7 million a year, and he’s still spending all of it. He’s gota great lifestyle. He’s got all the fancy cars and the country clubmembership. He wears nice clothes, he’s got a nice watch, he’s got anexpensive wife, but he doesn’t have anything in the bank.

Joe: Right.

David: So the pressure’s on him now, more than ever, because he has to make somuch more to maintain his lifestyle.

Joe: That’s so true. Your lifestyle just kind of keeps up with the amount ofmoney you make.

David: Joe, I think you would know this, because I have heard that you have arock-‘n-roll lifestyle.

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You canalways finda way tospendwhateveryou earn —even if it’s$7 milliona year






Joe: It’s all a PR thing.

David: Alright, we won’t go there.

Joe: No, look. I will just tell you, your information has dramatically changed alot of the habits that I’ve had. I’m actually pretty darned good with mymoney. I have not had a credit card balance in a decade. I am pretty muchdebt-free. I do a pretty good job with what I do with my money.

But I will tell you, in the very beginning, if I would have not lived within mymeans and figured out how to get out of debt early on, I would have carrieda lot of bad habits with me.

I will also say that I’ve had millions of dollars come through my hands overthe years, and a whole bunch of it was never captured because I didn’t havethe systems that you recommend and outline in your materials on settingthings up automatically.

So have I saved money? Yeah. Do I do better than the average bear? Yeah,I think I do. It’s because I focus on it.

Certainly, though, there’s a lot of things I wish I would have done 10 yearsago. But the best time to start is now.

So no matter where you are at, in any age category, taking what you’resaying today and implementing it will absolutely, positively effect your life,especially for young people and especially for our listeners’ children. Thequicker you grasp this message and hear it with people who you care about,just the better life is going to become.

THE AUTOMATIC MILLIONAIRE STORYDavid: I can so appreciate what you’re saying. Thank you. I was in credit card debt

over 10 years ago. In fact, the story that the book talks about, The AutomaticMillionaire is based on a true story.

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The besttime tostart isNOW






I was 24 years old and making six figures. I had a Jaguar convertible, aRolex watch, a beautiful apartment in San Francisco and basically no moneyin the bank. I was the guy making big money and looking like big money,but not actually keeping any of it. I was a financial advisor, which is alsoclassic, because most financial advisors don’t have any money.

Here I am, 24 years old, making all this money, looking like I make a lot ofmoney but not really having any money. And in walks this couple namedJim and June McIntyre. I changed their names, so that nobody can go backand sue me for this.

But this wonderful couple comes into my office. He was wearing this short-sleeved dress shirt. You know those shirts I’m talking about — the reallybad-looking ones, with the pocket protector? He’s an engineer, and his wifeis a hairdresser. She’s got these big, blonde, funky highlights.

June had told me, at one of my seminars, that Jim was making about $35,000a year, and he wanted to retire. They wanted to come into my office at 52 totalk about retirement. I remember thinking to myself, “This is going to besuch a bad meeting. He’s not going to be able to retire. I’m not going to beable to get a client out of this.” Remember, I was a rookie financial advisor.

He comes into my office, and he starts showing me all of the stuff that hehas. After 15 minutes, I realized this guy’s not only going to retire, but he’srich. He owns two homes, free and clear. He’s got one as a rental. He ownshis own home free and clear, so he has no debt. He has over $1 million insavings. He’s paid off three cars and a boat, has no debt, and he’s put twokids through college. He even had a pension plan.

I was just blown away. The highest amount of money that this guy hadever made was $52,000 a year. On average, his income was about$35,000. Here I am looking at him, and I’m thinking to myself, “I amnot doing something right.”

Joe: Right.

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You canlearn a lotfrom yourclients






David: This guy has never made half of what I’m making, almost out of college, andhe’s got all of this money. I proceeded to do something that was unusual forme. I actually shut up, for a change, and let him tell me how he did this.

So he told me. “David, I’m just doing what you talk about. I actually did it.Like in your seminars, you talk about paying yourself first. I did it. It’sautomatic. We made all of our savings automated. So we did all of the thingsyou talk about, we just automated them.”

He didn’t hire me because he realized he knew more than I did. He waspretty smart — after them sharing with me, for an hour, how they did whatthey did, I went back to my office and I said, “I’m changing everything inmy life. I’m not going to be a renter, I’m going to go buy a home. I’m notgoing to save at the end of the year, I’m going to pay myself first.”

I put everything in place and then more than he told me about. By 30, I wasa millionaire. By 32, I was a multi-millionaire.

Joe: That’s awesome. Don’t you love it when your clients come to you and youactually learn from them?

David: All the time. I’m sure you have that happen, too. I love it. Let me give youthe fourth question.

Question #4 — Do You Own A Home Or Do You Rent?

Joe: Can I say something about that before you get into it? I said I’m debt-free,but I actually do have a mortgage on my home and I do have a mortgage onthe building that I own, where the Piranha Marketing offices are.

David: That’s okay, as you should have a mortgage on those things.

20

You haveto makeyoursavingsautomatic






Joe: I always pay off credit cards and everything. Can you go into own your ownhome, because I have owned several homes in my life, and I’ve always mademoney with them.

David: So you own the building that Piranha Marketing is in?

Joe: Yes.

David: That’s very smart. We’ll talk about that, too. The core of The AutomaticMillionaire is you can’t get rich renting. It’s a statistical fact that renters in NorthAmerica are poor. The average renter in America is worth less than $5,000.

The average homeowner, however, is worth 31 times more than a renter.

Joe: Say that again. That’s actually kind of an important nugget of information.

David: The average renter in North America — this is from the NationalAssociation of Realtors — the statistic is the average renter has a net worthof less than $5,000. The average homeowner is worth 31 times more thanthat — so that’s over $150,000. The numbers are even higher in Canada.They’re like below $4,000 if you’re a renter in Canada, and over $143,000if you’re a homeowner.

So we know, really, that the likelihood that you’ll have any wealth if you’rea renter is pretty much slim to none.

So the moral of The Automatic Millionaire is you can save and buy your firsthome. The sooner you buy your home, the better.

A lot of real estate markets around the U.S., in the last 36 months, haveactually doubled. Homes have doubled in price.

Joe, where are you located?

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The sooneryou buyyour home,the better






Joe: I’m in Tempe, Arizona. The real estate market out here is outrageous.

David: Has it boomed?

Joe: Oh, yeah. My home is an example. The current home that I’m in, that Icustom-built about three years ago, has increased in value almost a quarterof a million dollars.

NOW IS THE BEST TIME TO BUY A HOMEDavid: It’s so hard to save a quarter of a million dollars. My example, and I’m

happy to share this, I’m starting a new book called Start Late, Finish Rich.

I bought my first home for $220,000. I bought it with a friend. This wasin the early 90’s, so we split like $12,500 of the down payment. I only putdown 5%. We’re talking a 95% mortgage. We could barely afford theplace. We had to rent one of the rooms to pay for the mortgage, but wewere just out of college.

And, you know what? Real estate didn’t boom the first five years in theearly 90’s. In fact, five years later, we sold that place for $225,000. Not abig slip, as they would say. After commissions, I think we lost money.

We should have kept that home, because today it is worth $700,000.

I went to buy a place in San Francisco. I paid roughly $650,000 for my placethere. Three years later, I sold out for over $900,000. So I pocketed the$250,000 tax-free, because you get $250,000 tax-free after years years.

Then I bought a place here in New York for $2,050,000. It’s worth $3-million now, in just 18 months.

So we’ve increased the value of it. I haven’t done anything, but the market’sgone up by over $1 million.

You’ve got to buy a home.

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If the realestatemarket isn’tgreat, itprobablywill besoon






These are extreme examples, but I would tell you to beg, steal or borrow toget a little down payment and buy a home. I go through, in the book, howto do it easily. There’s so many loan programs now that will help you buy ahome with really very little down payment — like 3% - 5%.

Joe: I have an employee here at Piranha Marketing, and she just purchased ahome two days ago. I had her listen to your Nightingale-Conant program onThe Automatic Millionaire, and she just purchased a home.

David: Awesome!

Joe: So anyone can do it. This person is 25 years old, and it’s awesome. I’mencouraging everybody to do this. What you are speaking is truth. It’s justabsolutely what will make you wealthy.

David: You’ve got a lot of people on this series who I really respect, who I like. Buta lot of these infomercial people who have talked to people about real estate,seem to always talk about finding somebody who’s desperate.

They want you to do a special deal with them where you can buy their home,and they’ll carry back the mortgage. That’s really not easy to do. It’s reallycomplicated, to be totally honest with you.

Joe: Yeah, it is.

David: What’s really easy to do, though, is to go through a bank and show them thatyou breath and make $50,000 a year, and I pay $2,000 a month in rent, andtell them you don’t have any money to put down but would they loan youthe money to buy a home? You know what? In almost every case, theanswer’s yes.

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Dowhateveryou haveto do toget into ahome






Joe: You say the best landlord is you. You’re your best landlord.

David: And the bank knows this. The bank knows that the likelihood that you willdefault on your mortgage is almost zero. When you talk about foreclosures,less than 1.5% of homes go into foreclosure a year. It’s nothing.

You might not eat and you might not pay utilities, but you’re not going tolose your home. So they’re willing to take a risk on you.

I had another friend of mine in the Bay Area that had really bad credit.They’d just done everything wrong. I said, “You should still go buy a home,because you’re paying $3,000 a month for rent, which is just stupid.”

They said, “Nobody will loan us the money.” I said, “You don’t know that, gotalk to 10 banks. I’m promising you, somebody will loan you the whole thing.”

They got a loan for 100% of the mortgage. They bought a really crumbylittle house in San Francisco for $550,000. Two years later, they both losttheir jobs and had serious financial difficulties. They didn’t lose the home,they sold that home. They sold it for $850,000.

They’ve now been able to pay off all of their credit cards. They moved up toTahoe, they’re living in their family’s home in Tahoe for free and they’ve gotover a quarter of a million dollars in the bank.

Joe: That’s awesome.

HOW TO CUT 7 YEARS OFF YOUR MORTGAGEDavid: Buy a home. I teach a simple secret in The Automatic Millionaire — the

smartest thing you can do when you have a mortgage is to do a bi-weeklymortgage. You take your mortgage payment, if you’ve got a 30-yearmortgage, break them in half.

24

You arethe bestlandlord






I’ll give you an example on a $1,000 a month mortgage. If you pay $500 every

two weeks, you’ll take a 30 year mortgage, and you’ll pay it off seven years

early. The bank can do this for you and make it all automated and automatic.

On a $250,000 mortgage, you’ll save over $100,000 in interest payments,

and you’ll cut seven years off your mortgage doing that.

Joe: Now, when some people say, “What if I just make an extra payment once a

year,” or whatever? “Why would you say do it every two weeks, versus

doing it that way? “

David: Because everybody says they will do it, but nobody does. Very few people

are disciplined enough, at the end of the year, to make an extra payment. At

the end of the year, you’ve got Christmas, the holidays, taxes and everything

else. So nobody does it.

Joe: Now, of course, I knew that’s what you would say, and I totally agree with

you. What I want to really get through to people is that the message here is

do it automatic. Don’t leave anything up to chance because if you make sure

that everything’s set up automatic, then you’re absolutely assured that you’re

going to have a successful financial future.

David: It’s forced savings. These are not get-rich-quick schemes. This is how you

become boringly wealthy over your lifetime. People say, “Gee, why should

I pay my home off?” The answer is so you can stop working, at some point.

People who pay their homes off early usually stop working, and they usually

stop working early. They retire, on average, in my experience of being a

financial advisor in the real world, five to 10 years sooner.

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Don’t leaveanythingup tochance —do itautomatic






HOW TO HAVE A MORE SUCCESSFUL BUSINESS

David: I will throw this out, because I know you have all of these business owners

listening. What you are doing, Joe, is the single, most important thing a

business owner can do. Very few business owners actually buy the real

estate that their business is in.

I would implore anybody that they should do that. What I saw as a financialadvisor is this that most business owners get rich by accident. Most businessowners think their business is saleable, and it’s not. When they finally go tosell their business, they can’t sell it. It’s not worth anything. Nobody wantsto buy it, or if they do, it’s worth very little.

I’m just saying this as a broad-based generalization here. What I’ve seen ismy clients who came into my office, were really wealthy, worth millions ofdollars, who owned their own business, the reason they came into my officerich was a complete fluke.

Once upon a time, 10 years earlier, they bought the building that theirbusiness was in. So when it came time to close the business down, theyowned a building that was worth millions of dollars, free and clear.

In many cases, the rent alone on the building gave them more income thanthe business did.

Joe: Yeah. You are absolutely right. I learned this after renting for probably sevenyears in my business, before I finally bought the building.

Now, I’m very happy I did this, because the building that I’m in, in the lasttwo years, has increased in value about $100,000.

David: How about that? Pay yourself first. You bought the building, the rent’s goingto you, and now you’ve increased your value by $100,000.

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In manycases, thebuildingcan bringan ownermoreincomethan thebusinessitself






Joe: Exactly. Had I had that other seven years, there’s no telling what I wouldhave at this point.

So when you’re saying that a lot of business owners get wealthy because it’sa fluke, you’re absolutely right.

The couple of houses that I bought early on, I didn’t go into it with anenormous amount of intelligence. I just luckily sold them and made a lot ofmoney after I sold them. When you have that money, you can do more. Youcan go and buy other things. You can upgrade. It’s really cool.

David: It’s funny. I just got off the phone with Brian Tracy before we did this call.Have you interviewed Brian?

Joe: I interviewed Brian twice. He’s a great friend of mine. He’s spoken at myseminars before. He’s a very, very smart guy.

David: He’s a really good guy. He was teasing me. He was saying, “David, you’reso young, you have so much time.” And I said, “Knowing what you knownow, Brian, what would you tell me?” He’s like, “Here’s what I would tellyou. Use the income that’s coming to you with laser-sharp focus to buyassets, like real estate, to create cash flow.”

He didn’t tell me all of the details, but he’s really spending a lot of timedoing real estate deals, aside from his business. He said, “I wish I had donethis sooner.” And I said, “You’re speaking to the choir.”

As a business owner, instead of just taking all of the money and throwing itright back in your business, make sure you pay yourself first.

Joe, It’s just like you put some of the money back in your business —especially in marketing, like the way you teach people — but they reallyshould make sure that they pay themselves first and that they startaccumulating assets.

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Many timesa businessesbuilding isworth morethan thebusinessitself






So I would just say aside from the typical fourth question being buy a home,you should buy some things for your office.

I’m a classic example. Right now, I’m sitting in a rented office. I’m in RobertDeniro’s building in Tribecca. I’ve only rented here for six months, but therent alone for three offices on the floor is $9,000 a month. I’m spending$9,000 per month to house Finish Rich, Inc.

I just closed on a condo around the corner with 2,000 square feet. It’scosting me $900,000, which is a fortune compared to other marketplaces,but I think it’s a steal.

My mortgage will be, at the end of the day on this loft I’ll get in January, willbe less than the rent I’m paying, but we will own the place for my office.

Joe: Wow! That’s very cool.

Question #5 — Do You Tithe?

David: That takes us to the next question, which is question number 5. Do you tithe?Do you give money back? This is not a small thing. This is the way TheAutomatic Millionaire book ends, on tithing.

It’s really an important question to ask, “Do you tithe? Do you givesomething back?” People think tithing is about church. It’s not. It’s aboutgiving back a percentage of what comes in back out, to help other people.

I will just tell you that the spiritual and the financial significance of this ishuge. There’s documented proof that people who give back part of what theybring in not only create more wealth financially, but they also create morewealth personally, and they live longer. They actually live longer.

I was talking to Ken Blanchard the other day, and he said to me, “David, weknow, through studies, that people who give back live longer and becomericher.” What else do you need?

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You should dowhateveryou can toown thebuildingyourbusiness is in






TITHING CAN HELP MAKE YOU RICHJoe: You know, you can either buy an anti-aging cream, or you start tithing.

David: It’s a magic secret. I was inspired by John Templeton at a Tony Robbinsseminar. John talked about how when he was making $50 a week, he gaveback 50% of his income. Well, now he’s a billionaire.

When you really study the linears, the common link is that they all gavemoney back when they were poor. They didn’t wait until they were richto give money back.

So I highly recommend that you give something back, and that you do itautomatically so it’s not at the end of the year.

Those are really the five core questions that, when you implement them inyour life, I really think that you’re unstoppable.

Joe: David, regarding tithing, I totally agree with you, I’ve seen evidence of it.Let me give you an example of one of my clients, Bill Phillips.

When he stared donating money to the Make-A-Wish Foundation, hisbusiness skyrocketed. When I first started working with Bill, he was doing$60 million a year in sales. Then he came out with the video Body of Work,and donated all of this money to the Make-A-Wish Foundation.

His company literally went close to $200 million in sales. There was anenormous amount of goodwill as a result of that. Bill is now one of thelargest individual contributors to the Make-A-Wish Foundation. So muchkarma came to him as a result of that.

So I think tithing has an enormous amount to do with karma. You putgood stuff out there, and it comes back. People could call it a technique,but there’s a lot more to it than this. You do good things for the world,and it comes back to you.

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You dogood thingsfor theworld, andit comesback toyou






David: I believe it comes back at least 110%. I remember Zig Ziglar had aphrase. He said, “Help enough people to get what they want, and you’llget what you want.”

Even if it’s just a small percentage — meaning like 1% or 2%, it puts youand your business in the habit of doing it. As you become bigger, theworld gets better.

It’s interesting because one of my friend’s brother-in-laws took theircompany public. What he did was sort of a new idea. He donated or hededicated 2% of the company equity to charity. He started this companyless than four years ago. When stock opened, the IPO price was $11. Itwas $15.50 by the end of the first day. He increased his net worth byabout $500 million in one day.

Joe: Wow!

David: I don’t know if you use the technology from Salesforce.com. It’s an amazingcompany. I bought stock in it. It’s amazing future technology. Basically, it’sdoing your database online.

Joe: Right. Right. We don’t use Salesforce.com, but we use something verysimilar to it, that is kind of attached. It’s an online database.

David: Again, here’s an example of somebody that came out first, before they evenknew they were going to go public, and said, “We’re going to build acompany, and part of the equity is going to go back to charity.”

So here he is, in less than four years, and he’s got a net worth of nearly $500million. He’s a very smart guy, and he’s got a smart idea.

I think if every business across America – and ultimately, the world – gaveback 2% of their revenue to charity, which is no big deal, even 1%, imaginehow many people we would start to help.

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Helpenoughpeople toget whatthey want,and you’llget whatyou want






http://www.SalesForce.com

http://www.SalesForce.com

WEALTH IN THE UNITED STATESJoe: Dan Sullivan recommends a book called, What’s So Great About America.

One of the things that I always hear Dan talk about is why we’ve got somuch wealth in the United States. He feels it’s because we are alwaysgiving back. When compared to most countries, that’s one of the thingsAmerica does best.

Unfortunately, that’s one thing that I don’t think is shared in the media a lot.There’s so much negativity in the media. The fact of the matter is there’s alot of really good people in this country who do an enormous amount ofcharitable contribution and make life better for other people.

Everything that you’re talking about here is not David Bach’s ideas that havenever been tested. You have seen this successfully happen a bazillion times.People who tithe make more money. People who automatically set theirlives up this way get wealthy. People who buy their own home get wealthy.

So if there’s any message here, it’s listen to what you’re saying and just doit. The evidence shows the success out there.

David: You know what’s interesting is we’re always looking for new creativesecrets. I joke that within The Automatic Millionaire is the secret.

The truth of the matter is our grandparents knew this stuff, and they did it.By creating this book, I wanted to create something you could read in lessthan 90 minutes, you could act on the whole thing in less than 60 minutes.

We actually do run a coaching program based on The Automatic Millionaire.We run it every quarter. It’s a teleseminar, so you don’t have to come tosomething live. You can actually do it from the comfort of your own home.It’s a five-week teleseminar coaching program. It’s life-changing, and weguarantee the results. We give you a year to prove that it works.

You can actually go through the program and, in a year, if you don’t thinkit’s given you back 10 times the value of the program, we will refund allof your money back to you.

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People whoautomaticallyset their livesup this wayget wealthy






Joe: Awesome!

David: You can go to our website, FinishRich.com and read all of the successstories. You can register for the program online

Joe: Excellent. Excellent. So that’s FinishRich.com.

David: Yeah. It’s called The Automatic Millionaire Coaching Program.

Joe: I’ll put it on the JoePolishRecommends.com section.

David: Great.

Joe: Let me ask you a couple more questions. Oh, you know what? I wanted tomention something, before I forget. You said that everyone out there islooking for the secret idea or formula.

Emerson had a great quote, which is, “You ask for a new idea, when youhaven’t even used the last one yet.”

It’s really true.

So what you’ve laid out, in a lot of cases, is basic stuff that people haveheard before. When people say, “Knowledge is power,” that’s really nottrue. Applied knowledge is power. If you have the knowledge but you don’tutilize it, it doesn’t do you any good.

I think you have done the best job that I have ever seen done, explainingpaying yourself first and all that. I read The Richest Man In Babylon acouple of times when I was young, and I never started automatically payingmyself 10%. I do that now.

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Appliedknowledgeis power








http://www.JoePolishRecommends.com

INVEST IN REAL ESTATEJoe: Since most of our listeners are entrepreneurs, I think a lot of them have had

trouble paying themselves. It’s not necessarily just not having the money orpaying themselves, but shifting the habit in their mind, so that they becomemotivated to pay themselves first.

Is there any other elaboration that you can give, that would just really makethem cross that barrier if they’re in that, “Oh, I’ve got to save every bit ofmoney and put it back in the business?”

David: There is. Let’s just go back to the two things I said. It will sound like a brokenrecord, but it’s just true.

Joe: It’s a useful broken record.

David: It is a useful broken record. “Repetition is the mother of all skill,” was aTony Robbins quote once upon a time. It’s true — I really do think repetitionis the mother of all skill.

I will say this to you. Almost all entrepreneurs are paying rent somewhere.Most are probably not running their business out of their home anymore.They’re probably not running their business out of the garage.

So if you pay rent, if you say, “You know what, he’s right, this is ridiculous,Joe Polish bought an office, David Bach’s got an office, I should buy anoffice this year. If that’s true, then save money this year just for a downpayment, and go buy something to put your office in.

As long as you’re in business, you’re going to pay rent. When you own it atleast you’re building your own equity and you own your real estate.

What will happen in 10 years is you’ll at least own a piece of property,almost free and clear.

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Repetitionis themother ofall skill






As business grows, you can go and buy a bigger piece of property and rentout the first one. Before you know it, you’ve got real estate holdings. That’sgreat. Then you don’t even need the business, eventually. You can just berich on real estate. It’s as simple as that. It really is that simple.

The second thing is if you’re a business without a lot of employees, thenopening up a SEP IRA, a self-employed retirement account, is a no-brainer.You can put 25% of your income away, up to $40,000, as the cash flowcomes in every month.

Joe, I know you have a lot of carpet cleaners in your fold, but do you have alot of other industries, too?

Joe: Oh, yeah. We’ve got a lot of service businesses — home remodeling, wehave real estate, we have financial services, we have printers, we havepeople who run $100 million companies and we have people who run mom-and-pop shops out of their home.

START YOUR OWN RETIREMENT FUNDDavid: If you are running a service business, and the majority of businesses in

America have under five employees, so if you’re running a business that ismaybe you and your spouse or just you, for that matter, everybody else is anindependent contractor, look at opening a one-person solo 401(k) plan.

In The Automatic Millionaire, there’s a new type of retirement account. Itcame out a few years ago. It’s a one-person retirement account. It’s a one-person 401(k) plan. It’s only for you and your spouse.

This plan is unbelievable. You can put 100% of the first $13,000 you earnaway, pre-tax. No tax on that. Then you can put 25% of your moneyaway, up to $40,000.

So I’ll give you an example. My wife and I both work in our business, anduntil a year or so ago, everyone else was all independent contractors. Theywere all freelancers and they were all virtual. Now we’re hiring employees.

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As businessgrows, youcan go andbuy abigger pieceof propertyand rentout thefirst one






We were able to pay the two of us, myself $100,000 and my wife $100,000,and we were able to save $80,000 pre-tax, based on $200,000 of income.That’s unbelievable.

Joe: That’s pretty good.

David: That’s huge! So check that out. People say, “But my income’s notconsistent. It comes in waves. Like maybe I make money one month andthen I don’t make money for two months. What do I do then?”

The answer is I don’t care when the money comes in. I mean, I care, butwhen the money comes in you’ve still got to put something aside.

So even if it’s only 5% of your income, put something aside —automatically — the moment the money comes in. Cut a check, send it toyour retirement account, and you’re done with it.

Joe: Great. If people do this, they’re definitely going to be on the way tobecoming an automatic millionaire. If we were to fast-forward 10, 15, 20years from now, if they actually do what has been outlined here during thisinterview, they absolutely will have that result.

It will start immediately. Even six months from today, if somebody startsthis habit, it’s not just what happens with your money, it’s what happens toyou psychologically.

There’s a huge level of comfort with knowing that you absolutely are securein your future, versus if you don’t do this, I think a lot of it is just a hope anda wish that one day comes when I really hit the jackpot and make a lot ofmoney and things just turn around for me.

In my experience, it’s not a big event that makes people have their livesbecome dramatically better. It’s small, consistent things.

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There’s ahuge levelof comfortwithknowingthat youabsolutelyare securein yourfuture






David: They’re all consistent, little things.

Joe: Yeah. It’s like working out. If you don’t take time out for it now, you’regoing to take time out for it later, with poor health.

The same goes with financial. If you don’t take time out for it now, in thefuture you’re going to take time out for it being, in many cases, a horriblefinancial situation. I know you’ve done a great job, but I just hope peopleactually implement what you’ve said and read your book.

THE BEST GIFT YOU CAN GIVE YOUR CHILDRENJoe: Now, one more question I want to ask you, before we wrap up, David. You

now have a child. I’m sure that from a financial security standpoint, you’regoing to have a real lucky kid here.

What habits should people teach their children, so that when the childrengrow up, they can create their own financial security — so that they’reset in this area?

David: That’s a really good question. I’ll tell you what. I think the first gift yougive your children is education about money.

My grandmother taught me how to buy my first stock, at age seven. I talkabout my Grandma Bach in one of my books.

One day at McDonald’s, my grandma said, “You can be a little kid whoeats here or you can be somebody who grows up and works here,”pointing to the people at the cash register. Or she said, “Or you can besomebody who owns the place.”

She just taught me how to play Monopoly. She said, “Tonight, I’m going toteach you how to play Monopoly in the real world,” and then she taught mehow. She opened up The Wall Street Journal and shared with me how Icould buy a share of stock in McDonald’s when I was seven years old. I

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bought that share of stock, nd I’ve been buying stock ever since. At nineyears old, I bought stock in Disneyland.

So I think the first thing you do, as a parent, is you start teaching your kidsthese simple, basic things.

The Automatic Millionaire, quite frankly, is written at about an 8th gradereading level. I wrote a book that’s really, really easy to read. It doesn’t needto be more difficult than 8th grade.

We have a lot of parents that are giving this book to kids as young as nine.I actually got an email the other day from a 12 year old that said, “My momgave me your book, and I found my latté factor. I’m now not buying candybars at school, and I’ve saved $274.50, which is underneath my mattress.”

I got that email, and I was doing a radio show, and I said, “Let’s call this girl.Let’s call her parents and see if we can get her on the air.”

They were in Texas. The mom got on the phone and she told us, “Yeah, shereally read the book.”

This letter went on to say how her mother had given her the book, and shewasn’t excited about it, but then she was home from school sick and she readit in two hours, and she’s all excited now. She went and had a garage sale.

Here’s a 12 year old, learning these habits. Imagine what this girl’s life isgoing to be like when she’s 25. She’ll probably be a millionaire.

Joe: Absolutely! It’s awesome.

David: So teach your kids about money. They’re interested in the cash. Believe me.

People ask how old they should be when you teach them about money. I jokeabout it and tell them, you take a $100 bill in the right hand and $1 bill inthe left hand. If that child is 3, 4 or 5 years old and you stick the $100 in theright hand and $1 in the left hand, and they know which one they want andit’s the $100 bill, you’ve got a child that’s old enough to learn about money.

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Joe: Yeah. That’s great — lots of fantastic advice and guidance. You’ve got somany things that you’re doing right now, and you’re really out there makinga lot of waves and doing a lot of great stuff.

Where’s David Bach three years from today?

David: Wow. That’s a great question. I’m working on a new book called StartLate, Finish Rich.

Joe: That is a great title. You’re a good marketer, by the way — I alwaysappreciate great marketing.

David: Well, thank you. Truthfully, at this point, I don’t have to come up with theideas. My readers keep telling me what they need.

Joe: Exactly.

David: I was at a book signing for The Automatic Millionaire. One of my readersgot up and said, “I love you! I love Smart Women, I love Smart Couples.I’m going to buy this book today, but you’ve got to write Start Late, FinishRich, because I’m starting late.

The whole room laughed, and I thought, “That’s really funny.” She said,“No, I’m really serious.” As I was doing an hour-long session signingbooks, every single person who bought The Automatic Millionaire said, “No,really, you should write that book.

What the interesting thing was is that there were so many people in the roomthat wanted me to write this book. They were in their 30s. I would havethought Start Late, Finish Rich was probably a book for people 50 or older.What we’re seeing is people 30, 40, 50, 60, 70, everybody thinks they’restarting late. So I’m working on that.

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I’m working on a book for young people, called Start Young, Finish Rich.

My dream is we’re going to build the leading company in financialeducation, because my goal is to take 10 million by the hand and free themfinancially, by 2030. We want to create 10 million millionaires in NorthAmerica by 2030.

My ultimate goal is to truly transform the lives of 100 million peopleworldwide. To do that in a measurable way, so that we can show that we’ve got100 million people who have signed up to automatically pay themselves first.

We are looking for partners in everything from media to publishing, tofinancial services, to help us bring this crusade out to the world.

Finally, after five years of doing this and the message getting out, people arestarting to show up in our life to help us.

We didn’t call the people from Oprah, they called us. We’ve had AmericaOnline coming to us and wanting to do The Automatic Millionaire on theirwebsite, to CNN, to now we’ve got financial service companies.

We just had a four hour meeting today with a company in Canada. If we’reable to put the deal together, we will do official partnership all throughoutCanada, to bring the message that we’ve talked about here to all communities.

We’re trying to find partners all over the world to help us teach more peoplehow to go and do this, so that they can be free.

Joe: Wow! That’s awesome. That is exactly why you deserve the success you’rehaving, because you’re out there, putting a lot of time and effort into helpinga lot of people. You’re getting rewarded financially for it, but you’re gettingrewarded in ways that go way beyond money.

So people need to understand all of this in the right context. I think anyonewho takes this message and applies it, will not only get those rewards in theirlife, but they’ll also do it with anyone that they share with, which is why I’mmore than happy to get this message out to all of my entrepreneurs and allof my subscribers. I absolutely believe in it, and I know it changes lives.

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We’re tryingto findpartners allover theworld to helpus teachmore peoplehow to goand do this,so that theycan be free






So David, any final last words or anything you didn’t say? I think you’vedone a great job here.

David: No. Joe, I just commend you so much. The guy I met, who had a ponytail,now to the clean-cut guy doing all of the things you’ve done, I’m a fan ofyours. I appreciate how much you’ve shared with me in the last few months,but also over the last year. I will continue to be a fan and look forward tolistening to more of these audio programs.

And honestly, I say this humbly, that it’s really been fun to do this, but I alsofeel like it’s a privilege to be part of your Genius Network.

I really have respect for people who take part in programs like this, becauseI’ve always listened to and read programs like this. And I know that youonly need one idea to change your life.

I hope that I gave at least one idea today that you can go take to the bank.

Joe: Great. Thank you, David. It’s always a pleasure talking with you. I learneda lot, as I always do.

To my Genius Network subscribers, please give me your feedback so I can shareit with David. You can submit your feedback to [email protected].

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