Jo inspired this post today… I think I’ve actually posted on this before…not sure…

A few years ago, a friend of mine *my boss at the time* hipped me to this book:  The Automatic Millionaire

The Automatic Millionaire is basically a “How-To” on saving funds that you would otherwise *throw away* to compound interest and save for your future.

As soon as I got through the first chapter, I was pretty much sold. lol. I had an ING Direct account already, but this book inspired me to start automatically saving under the latte factor. The latte factor pretty much gives you a “starting point” as to how you can save. For example, if you’re an avid Starbucks drinker who needs that daily cup of crack, and maybe a lemon loaf…or a blueberry muffin *if ya nasty*…you’re “throwing away” about $5.00 – $7.00 a day on your latte. This money can otherwise be put into a high interest savings account and be put to work for YOU!

Okay, so my issue *at the time* was…shopbop.com.  Every time a new line was launched, I was itching to get my fingers on a cute shirt, or pair of pants. This was my latte factor. Instead of spending the money on the shirt, I’d simply put the money that I would have spent… into my ING Savings account.

Well…that kind of didn’t last long, because I simply stopped going to shopbop.com *unless there was something I wanted to look especially cute for*.  So, every Friday, I’ve scheduled ING Direct to pull about $30.00 USD out of my bank account into savings. And now that I’m used to it just not being there, I don’t even realize that it’s gone.

Same thing with my 401k. When I was working in the Corporate world a few months ago, I had my 401k set up and I was contributing at 12% per pay period, which was fine. And now that I’m not in the corporate world, I still have it set to pull a good amount of money out of my bank account every month. I gotta retire sometime.  I just don’t want to be broke when I do.

Yeah, it’d be great to win the lotto. I can’t front. I still play Mega Millions…lol. But until that happens, and while I’m still outsourcing my life, I’ll just go ahead and let ING do the dirty work.


7 replies to “The Automatic Millionaire

  1. talda

    i’m loving my ing account but i’m not loving how the interest rate dropped so much since the beginning of last year…now it’s under 4% i need to start my 401k contributions soon too. at least we still have time on our sides!

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  2. Golden

    Girl! I loveth that book! Like you I picked it up and he had me before the end of the 1st chapter. I have an ING account and back then I was doing my thang BUT then I had to spend it! LOL However, Da Kids child support goes directly there each week! I also have an IRA that I contribute to monthly and by my calculations if I continue to contribute for the next 30 yrs…ooooh girl! i’m straight! LOL

    Right now it’s hard for me to have money directly removed from my account but I’m working on it.

    Thanks for the reminder. I’m so looking for this book this weekend. I know it’s in the house some where.

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  3. trishie

    that’s a good idea i really need to start saving and stop putting all my money in my checking because that’s how i spend, spend, spend. i just buy clothes in general online specially when i see something cute out. my mindset is always, “omg what if its not here later?!” i recently just bought some american eagle outfitter shirt about 2 secs ago.

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  4. campfyah

    It so interesting that you wrote about this book. I just was reading an article about the latte factor. I’ve mad a conscious effort to combat the latta factor. Actually what I try to do is see how many days I can go without spending money or going to the ATM. It works. I need to set up my ING account.

    Reply

  5. Adrienne Graham

    You all would be better off going to Bankrate.com and comparing interest rates. I’ve been an ING customer for about 4 years and I am no longer loving it. Vanguard Money Market Prime is excellent. With the economy the way it is rates are dropping. With the Vanguard MM Prime, you need $3000 to open it. But the interest is consistent and fabulous.

    I also believe we don’t invest enough. A lot of us find it hard to manage the discipline of saving let alone learning about investing. I always love to see when people dedicate to educating themselves and others in finance. I run an investment club and we are all about building our wealth. I also think kids should be taught early as well. We are at such an advantage with access to the internet and can learn more now than our parents and grandparents could back in the day.

    I’ll get off my soap box now! LOL But there are a ton of books out there we should all be reading. Knowledge is power. :)

    Reply

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