A Self-Made Millionaire Shares His #1 Piece of Financial Advice
With the amount of financial advice on the internet, your brain likely turns off when you read the words "money management." But for the sake of your financial future (and your present bank account), we're offering up the SparkNotes version of personal finance 101, courtesy of Business Insider.
The news website rounded up their most salient pieces of financial advice, straight from the mouths of financial planners, best-selling authors, and even the second richest man on earth. Headlining their list is this timeless piece of financial wisdom from self-made millionaire and author of The Automatic Millionaire, David Bach: Pay yourself first.
"People still don't grasp the fact that they need to save a dime out of every dollar," Bach told BI during a Facebook Live interview. "When that money is moved before you can touch it, that's how real wealth is built." Bach recommends the "pay-yourself-first plan," which simply means saving an hour of your daily income instead of just 15 minutes.
Bach cites research from the Federal Reserve, which found that nearly half of Americans wouldn't have enough money on hand to cover a $400 emergency. At the same time, those people likely buy a Starbucks coffee every morning and plan to purchase the new $800 iPhone next year. "Americans have money, but we aren't saving it," he adds.
For more, read up on the number-one money rule to follow in your 20s, and share your saving strategy with us below!