Afford Anything -#192 The Latte Factor with author David Bach (85 minutes)
Pro-tip: Save time and listen at 1.5 speed. You will still understand everything.
David Bach has written ten consecutive personal finance New York Times bestsellers over the past 20 years. His advice mirrors the old adage “Take care of the pennies and the pounds will take care of themselves” (Pounds are the British form of currency). Other personal finance experts say this is inefficient and we should focus on the “big ticket” items like housing, transportation, and food. However David Bach’s approach is accessible; almost everyone can think of some small tradeoffs they can make today to start saving money. This approach is designed to evolve, as time passes more “efficiencies” can be identified and future raises can direct more and more money to savings and investments.
KEY TAKEAWAYS
- Almost everyone can smart with a small tradeoff, for example eliminating their daily latte, to reduce spending.
- Systematically use these funds to pay off debt, build an emergency fund, and invest for the future.
- Use automatic services to bill pay, transfer money, and invest every month
- Use pay increases to increase saving and investing
- Over times these funds will compound and grow resulting in financial security
DISCUSSION QUESTIONS:
What did you think about Bach’s recommendations? Which would work with your lifestyle? What ideas from both/either will you apply to your own life? How does Bach’s perspective compare with the other perspectives we have learned about?
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