Automatic Wealth: The Six Steps to Financial Independence

Title: Automatic Wealth: The Six Steps to Financial Independence
Author: Michael Masterson
Publication Year: 2006

Most (good) books on wealth-building will advocate spending less than you earn and investing the difference from a young age. This is tried-and-true advice, and many of the people who follow this advice are comfortably well-off. Personally I think it's safe way to live... nothing wrong but little boring.

Michael Masterson’s Automatic Wealth also advocates saving, but beyond this he makes a bold claim: It doesn’t take 30 years of scrimping to be financially independent; he can teach you how to do it in 7 to 15 years! Michael's time table is reasonable... not sure about buying one rental property per year sounds too much like the "dollar cost average". Also I'm not sure if I want to keep lot'O cash at home or keep gold! I guess if this was 1930's I would. And "flipping" real estate is probably a no no in 2009.



I skipped part of 2-3 mostly for newbies, chapter 5 I skipped on picking the stocks.

Here are the 6 steps:
1. Recognizing reality - you won't get rich saving 10% or more in your pension plan or getting measly salary increases.
2. Plan to become wealthy - This is occurs one step at a time and requires planning.
3. Develop specific wealthy habits - basic stuff
4. Radically increase your income - Rental should yield 10%
5. Get rich while you sleep - by receiving passive income
6. Retire early - to live the lifestyle you want

Masterson believes one's primary goal is to accumulate enough capital to generate passive income to pay for life's necessities.... start with side-business, than move onto bigger things.
I forgot which chapter when Masterson talks about "pay your self first" I was smiling and thinking of the same thing.