What if you could decide today to become an automatic millionaire simply by changing just a few daily habits in the good news is you only have to make the decision one time and then you could be a hundred percent certain for sure that you would in fact retire as an automatic millionaire well on today show the nine time New York times best selling author Mr. David Bach joins us to teach you his secrets for becoming an automatic millionaire.

Some shows don't need a celebrity narrator to introduce the show but this show dies two men eight kids co-created by two different women 13 multi-million dollar businesses ladies and gentlemen welcome to the thrine time shop.

Yes, yes, yes, and yes, Thrive Nation ladies and gentlemen on today's show we are interviewing a nine time New York times best selling author who is best known for his finish rich book and the automatic millionaire series of financial books.

He's just recently released his 20th anniversary edition of his mega seller smart women finish rich David holds an undergraduate degree from the University of Southern California and throughout his career he has appeared on the today show CNBC Fox business live with Regis and Kelly the view Larry King the Oprah Winfrey show and anywhere on the planet that TVs are sold ladies and gentlemen David has impacted my life in a profound way with this thing he calls the latte effect.

Let's welcome on without any further ado Mr. David Bach welcome on sir. Wow, I love it was great to be on the show with you. Thank you for I know just to totally awesome production love your energy.

David years ago my wife and I we were getting this book called the automatic millionaire because I don't do road trips unless I have an audiobook and then if I listen to the audiobook and I like it I buy the physical book.

So I picked up the book called the automatic millionaire and at the time I had a company called DJ connection which I later sold but before I sold that we were doing 4,000 weddings or corporate events a year and it still existed DJ connection dot com and you said you challenged me.

You said you Mr. Clay Clark you Mr. Listener you Mr. Whoever you are you have to save at least one hour per day of income regardless of how much money you're making and at the time I was making

a copious amount of money can you talk to us about the importance of beginning to save one hour per day of income regardless of how much money we're making.

Yeah I mean I would love to be because honestly this is what should be taught you before you get out of like the eighth grade so let me start by saying this the average person in America is going to work 90,000 hours.

That's a lot of hours right so if you're both working which today many families both work right you could have a family that the two of you combined will work over 200,000 hours during your lifetime.

So if you just take that math and you go well geez well so I guess if people are working so hard then they must all end up with a lot of money right because they trade your time for money when you go to work.

So are they and and that's that's really the core issue they're not right so one out of two Americans right now according to the Federal Reserve can't get their hands on $400 in case of emergency purposes.

True.

So like so the follow-up book to the automatic millenia was actually a book called start late finish rich and when I wrote start late finish rich the thing that blew my mind away was that the statistics said that 60% to 70% of Americans live paycheck to paycheck.

So what I started saying to people is look here's the deal the entire secret to building wealth is that you have to fight for your paycheck and you have to keep the first hour day of your income.

So what that means super simple is you got to work at nine o'clock and you work until five on a typical day you need to keep whatever you earn the first hour so from nine to 10 let's say you make $20 an hour or $50 an hour or $100 an hour whatever that first hour of income is it's got to go straight to you.

Only legal way to have it go straight to you where it doesn't go to taxes or so security or state tax like I live in New York City right I've got federal tax I've got state tax I've got city tax I've got so security tax when I earn a dollar all over 40 cents on the dollars gone before I can ever see it right.

The only way I cannot pay those taxes in a keyword here is legally is if I take money that first hour day of my income and I put in a deductible retirement account.

So for someone who's listening that's got a job it's going to be like a 401k plan or if you're a teacher it's going to be a 403 B plan or if your government worker it might be a TSA plan or if you're self employed like you probably you know you're self employed right when you had this DJ connections.

Yeah it's a self employed retirement account it's like a set by our account and you know many entrepreneurs don't even fund these accounts because they don't even know about them.

So the whole concept of pay yourself first one hour day of your income is that if you do that you're saving 12.5% of your gross income and that's a really good starting number now I got to be honest I'm starting to try to get Americans to save more than that.

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