Budgets Don't Work, Automation Makes You Rich | David Bach

Lewis Howes (0:02)

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Welcome everyone to The School of Greatness podcast. We've got the inspirational David Bach in the house. I've heard your name for many years. You've written how many? Nine, 10 New York Times bestselling books, back to back to back. You've been on the New York Times bestseller list for 40, 50, 60 weeks. I don't know, something crazy. You've been on Oprah six times, Today Show a hundred times. You've been on every other media outlet there is. So I've heard about you. I've seen your work. The Automatic Millionaire is something that a lot of people talk about in the money finance space.

So you're here now and-

David Bach (1:18)

I'm here now in, by the way, because I'm a fan of yours, right? So like it's a mutual love fest. You're like, I've watched all of this, by the way, it's as cool as you would imagine it is.

SPEAKER_3 (1:26)

It's fun.

David Bach (1:27)

So it's really neat to be here with you live in LA.

Lewis Howes (1:29)

I'm excited.

David Bach (1:30)

Because West Hollywood, where this all happens, is pretty special.

Lewis Howes (1:33)

You live in Florence now in Italy, right?

SPEAKER_3 (1:35)

Going to.

David Bach (1:36)

I'm going to leave after July 22nd and go live in Florence, Italy for a year.

Lewis Howes (1:40)

It's amazing.

David Bach (1:41)

You got to come over to Italy.

Lewis Howes (1:41)

I'm going to come and visit. You got this new book out. You've written a number of books. You've got a new book out called The Latte Factor, and why you don't have to be rich to live rich. Now, we were just talking before this started, and you were saying that there's, you've got some controversial things that you do with money that other influencers or thought leaders do differently.

David Bach (2:04)

Totally.

Lewis Howes (2:04)

For example, you said that there's two things that everyone needs to be doing at a young age if you want to generate more wealth.

David Bach (2:12)

Completely.

Lewis Howes (2:13)

Two things are investing in stocks and real estate. Is that right?

David Bach (2:16)

Yeah, it's the two primary escalators to wealth.

Lewis Howes (2:19)

Escalators, where you can grow your money, your investment, your money can work for you as opposed to just sitting in the bank.

David Bach (2:25)

Completely. It's like the game of Monopoly. I was just literally explaining this to my kids yesterday. I said, on the game of Monopoly, you go pass go and you get a paycheck. And if you just go around the properties and you land on them, you pay rent. And you can't win the game of Monopoly unless you buy one green home, then two green homes, and three green homes, and four, then a hotel. You have to be an owner in the game of Monopoly. The ironic thing is that the game of Monopoly is a great lesson for all of us for life. You have to own assets that make you money while you sleep, that grow while you sleep.

And the challenge for most of America is that this stuff is not taught in school. Like this little book, The Latte Factor, I wrote it as a parable to reach the 98 percent of people who will not normally read a financial book. You've got my other stack over here. But most people won't ever read a financial book. So I thought if I write it as a story, you can read in less than 90 minutes, and I can teach you these life lessons, the importance of paying yourself first.

Why you don't need a budget, like we'll talk about that a little bit. Like for instance, budgeting, everybody says you need to budget, and budgets totally don't work. People hate them. They hate them. It's like dieting, right? Like you try to go on a budget and you're married, you will fight about those budgets. People go on them, it's totally frustrating.