Is financial adviser David Bach crazy?

There are a number of reasons why millionaire author and financial adviser David Bach could be thought of as crazy.

Firstly, he doesn’t want you to drink coffee.

Secondly, he thinks you can automatically become a millionaire.

Thirdly, for last two decades he hasn’t stopped talking about this stuff.

Bach is a guy to watch – bear with me as I explain.

WHAT KEEPS BACH UP AT NIGHT?

Bach is in the throes of launching his new book, The Latte Factor, with a veritable firehose of marketing, video calls, webinars and guest interviews.

He’s just been on Lewis Howe’s podcast in an interview entitled, Be Financially Selfish.

And it is all a mere 90 days before he rushes off with his wife to take a sabbatical for a year in Florence, Italy.

If The Latte Factor does well, Bach may be able to add it to the other nine New York Times Bestseller titles he has all focused on the “science” of getting rich.

There are thousands of people who swear blind that his advice works.

And Tony Robbins and Oprah Winfrey clearly like to publicize his ideas.

A CONFESSION

Now I have been following Bach for well over a decade and back in 2005 I bought his book, Start Late, Finish Rich.

But I have a confession to make – I did not put his financial advice into action. It was only about three years ago, as I was building a business online, that I came to recognize that I should apply some of what Bach teaches so that I am not just focused on income.

And over the last couple of years I’ve zeroed in on building an asset base.

And it is a gamechanger.

I jumped in early with Bach’s latest book, The Latte Factor, before it get released this month because I recognized the wisdom behind the storyline.

THE LATTE FACTOR

If you take what Bach says literally then the message is to cut out your daily hit of coffee at the coffee shop and put that money into savings and investment.

What can you do with putting aside $5-10 a day?

Now don’t get me wrong – Bach does not have a grudge against Starbucks. And he is not a health nut telling you caffeine is out.

What he is saying through the story he tells in this “fast-read” book – a story, rather than a boring technical book – is the money you save by not going to the coffee shop, bringing a packed lunch to work, or ditching bottled water can be funneled into saving and investment.

Of course, if you go beyond putting a few hundred dollars aside each month, so much the better. That’s crucial to mention – especially if you want to fast-track your journey to becoming a millionaire.

This could work well for somebody in their twenties who “pays themselves first” every month and builds over the decades. As Bach says, an 8-10 percent return on investment could double your holdings in a decade. This is a way to make a million before you retire. But it is a long game.

Even those who jump in late – like myself – can work to catch up if a large enough percentage of one’s disposable income is invested on a monthly basis.

WHAT TO INVEST IN

Bach clearly favors investing in stocks and property as a way to build wealth. And to remain disciplined and hang in for the long run.

Check out more from Bach at his website Davidbach.com

You can’t go too far wrong following the advice of such wealth thinkers as Bach, Robert Kiyosaki and Tony Robbins when it comes to building a sizable nest egg – one that will give you financial freedom or even allow you to retire early.

But it is also important to take care with what you invest in and carefully consider the projected rate of return.

In this sense, experts such as Lynette Zang and Mike Malloney are right when they advise diversifying including investing in precious metals. There is also a growing chorus of experts suggesting a careful choice of cryptocurrencies. The underlying foundation, Blockchain, looks set to revolutionize business and the economy and at least some cryptocurrencies show promise.

Don’t be put off by the “noise” that surrounds cryptocurrencies. But do your due diligence.

My own personal pick, a gold-backed cryptocurrency offered by an eight-year-old company in Germany, is already performing extremely well this year. CHECK IT OUT HERE

UNDERLYING MESSAGE

There are a multitude of messages in the savings and investment space and it is easy to get lost and make the wrong moves.

But the underlying message one gets from Bach, Kiyosaki and others is the importance of essentially being “selfish” and paying yourself first – making investments to provide you the financial freedom you are dreaming of.

That is certainly Bach’s message.

Now that is worth skipping Starbucks for, right?

DISCLAIMER: I am not a financial adviser. Please do your own due diligence.