Facing Financial Hardship? Millionaire Shares A 'Simple' Habit That Will Help You Become Rich
According to Bach, the key is to prioritize paying yourself first by saving just one hour's worth of your daily earnings, a strategy that can pave the way to prosperity.
In the endless quest to save more money, people are on a constant hunt for innovative strategies. From penny-pinching budgets to the latest internet-inspired life hacks, pursuing financial security is an ongoing race.
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If you aim to establish a rock-solid financial future, millionaire and renowned author David Bach has outlined a straightforward formula on his blog to set you on the path to wealth.
What did Mr Bach advise?
According to Bach, the key is to prioritize paying yourself first by saving just one hour's worth of your daily earnings, a strategy that can pave the way to prosperity.
The New York Times-bestselling author and self-made millionaire suggests saving at least 14 percent of your income.
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"You're going to work 90,000 hours (around 35 years) over your lifetime. It would be best if you kept at least an hour a day of your income," he wrote in his blog.
What are Mr Bach's three rules?
He shared three rules for becoming an automatic millionaire and detailed the process on YouTube:
Pay yourself first.
Pay yourself the first hour a day of your income.
Make it automatic.
According to Mr. Bach, paying yourself first means you're the first to get a share of your earnings.
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He elaborates on the 'One Hour' savings rule by considering various expenses such as taxes, housing, healthcare, groceries, credit card payments, and transportation. After covering these costs, many people struggle to have money left for savings.
Mr. Bach says, "I want you to keep the first hour of the day of your income. So from 9:00 a.m. to 10:00 a.m., that hour goes to you."
He elaborated, "You're going to work 90,000 hours (around 35 years) over your lifetime. Most Americans get to 60, and they have nothing to show for it. You'll have at least a million dollars in your retirement account if you pay yourself first, one hour a day of your income."
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