The Automatic Millionaire Essays

1128 Words Dec 22nd, 2015 5 Pages
The Automatic Millionaire teaches many important concepts and leads its readers on the path towards becoming future millionaires. The Automatic Millionaire shows how you can be a millionaire over time without self-discipline or budgeting. The three main concepts that I thought were the most important were the Latte Factor, and how it impacts our lives. The next is the “Automate for a Rainy Day” concept, and how you should always plan for a “Rainy Day”. Lastly, I’ll go into what tithing is and why it is important for all of us to commit to tithing.
The Latte Factor is one of the most important concepts in the Automatic Millionaire. It’s one of the key factors that ignite the path to becoming a millionaire. “The problem is not how much we earn . . . it’s how much we spend!” (31) In order to begin the path of becoming an Automatic Millionaire, you just have to start saving a few dollars. It’s not a matter of earning more money, you just have to evaluate what exactly you’re spending your money on. Then from there, you can determine what you can cut out of your weekly/monthly expenses. This is the Latte Factor concept. If you save your money instead of spending and wasting it on all the “small things” like a latte everyday, you can end up saving lots of money towards your retirement account. For example; if you put $5 a day into a retirement account, that 's about 2,000 a year. With a 10% annual return for sixty five years, that would be over 1,500,000 in savings. Depending on…

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