David Bach

What Do You Need to Retire? (& How to Invest Money That Aligns with Your Values)

Episode #475

SUBSCRIBE ON APPLE PODCASTS SUBSCRIBE ON YOUTUBE SUBSCRIBE ON STITCHER
Download The Podcast MP3

There’s a psychology to living rich. I know this because I’ve been rich and broke.

In the traditional sense.

But I’ve also been dead broke mentally. And emotionally.

Most people have.

Because we walk around wondering if we have enough money to________.

Retire, go out, travel, live life… We’re stressed about our kids, our responsibilities, ourselves. And it backfires. Our bodies overproduce cortisol (the stress hormone) and make us inflamed.

David Bach caught on early. And wrote books like “Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age.”

And “The Automatic Millionaire.”

And over a dozen other books that have sold a combined 7 million copies.

Now he has a new book, “The Latte Factor.” To teach a new lesson… about paying yourself first. And “buying your freedom.” He said, “If you’re trading your time for money, and going to go work from 9 to 5… you have to become financially selfish.”

This episode will teach you how to do that (and more). Here’s list of what we talk about and a preview of the episode:

  • Episode preview – [0:12]
  • Hear some pre-interview talk with David Bach before we get started – [3:00]
  • How David Bach’s books can teach you expert wealth techniques – [3:24]
  • Two books that influenced David’s life: “Who Moved My Cheese” by Spencer Johnson and “The Alchemist” by Paulo Coelho – [4:35]
  • The power of opening a $2,000 IRA account – [6:20]
  • How to become the best in the world at something (using compound interest) – [7:51]
  • Consistency comes from loving what you do – [9:11]
  • Why the next 10 years of your life are the most important years of your life (regardless of how old you are)… hint: they’re going to be your healthiest – [11:53]
  • The three stages of retirement – [13:25]

 

  • The problem with conflating net worth with self-worth – [25:14]
  • I ask David his advice for people who don’t know what to do with their life – [25:41]
  • The problem with thinking everybody’s online life is better than your real-life – [27:25]
  • David’s #1 takeaway in “The Latte Factor:” “You need to use your job and your income to buy your freedom.” – David Bach– [28:43]
  • What it feels like to get rid of things you don’t use or need [29:43]
  • Experiences > stuff  – [31:10] 
  • My experience getting rid of everything I owned – [35:26]
  • David shares how he built his platform (and sold 7 million copies of his books) – [36:40]
  • Why the path to being a millionaire is simpler than you thought – [39:21]
  • David shares the exact math to save a million dollars – [40:15]
  • Why so many people avoid basic investing advice – [41:25]
  • The 2 primary forms of inflation in the U.S. – [42:12]
  • How to buy your freedom – [45:17]
  • Fact: If you save $10 a day for 100 days… you’re now wealthier than 6 out of 10 Americans – [45:40]
  • What to do if you’re making $20,000 a year and how to find other sources of income – [46:49]
  • The #1 reason people hate their job is because they hate their boss – [47:49]
  • Why people retire early (and the importance of fun at work) – [48:48]

  • What percent of your day is spent on things you hate? – [49:13]
  • David’s 3 secrets of financial freedom [49:33]
  • Why you should live rich now – [50:55]
  • The American Dream: living in a big city vs. living in a small city – [52:13]
  • The psychology of living rich – [53:52]
  • The difference between saving for retirement and saving for dreams you want to live now – [54:31]
  • “You don’t have to make a bunch of money to take a break.” – [55:14]
  • Why ou only have a short window to have a good, adult relationship with your kids – [57:50]
  • How your programing from childhood is stopping you from taking control of your happiness, job satisfaction, salary, etc. [59:08]
  • The alternative to quitting your job (work remotely) – [59:57]
  • We talk about the freelance skills we’ve hired for random projects – [1:00:23]
  • David asks me what I’m enjoying the most and what I make money from – [1:02:14]
  • How often I invest in new businesses and my philosophy on diversification – [1:04:06]
  • The challenge of saving as an entrepreneur – [1:05:50]
  • The 3 ways to have wealth as an entrepreneur – [1:06:52]
  • Angel investing vs. stock market investing – [1:08:02]
  • The skill entrepreneurs don’t always realize they need… – [1:08:52]

  • The art and science of valuation – [1:09:14]
  • What it really takes to sell a business – [1:11:41]
  • David tells me about a class at Stanford that teaches kids how to buy businesses – [1:12:28]
  • “Realize that wherever you are today, if you don’t like where you are, you can change it.” – David Bach – [1:16:02]
  • Book recommendation from David: “Everything is Figureoutable” by Marie Forleo – [1:16:29]
  • We begin to wrap up and I say why I recommend “The Latte Factor” by David Bach and “The Automatic Millionaire” – [1:16:59]
  • David mentions his podcast also called “The Latte Factor” and a free course he has on thelattefactor.com – [1:17:53]

 

Links & Resources: