Alex Nottingham JD MBA shares and discusses the 8 Steps to becoming an “Automatic Millionaire” – save first, automate finances, invest wisely, live frugally, and eliminate debt.
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About Alex Nottingham JD MBA
Alex is the CEO and Founder of All-Star Dental Academy®. He is a former Tony Robbins top coach and consultant, having worked with companies upwards of $100 million. His passion is to help others create personal wealth and make a positive impact on the people around them. Alex received his Juris Doctor (JD) and Master of Business Administration (MBA) from Florida International University.
Episode Transcript
Transcript performed by A.I. Please excuse the typos.
00:02
This is Dental All-Stars, where we bring you the best in dentistry on marketing, management, and training. Hi everyone, I’m Alex Nottingham. What if you could make a handsome amount of money with no drama, minimizing the ups and the downs? What if you didn’t have to think about it? You could just enjoy life and let the money do its thing. What if your money grows automatically? David Bach, author of
00:32
Automatic Millionaire provides just that. Let’s dive into the eight steps to be an automatic millionaire. First, pay yourself first. Take a portion of your income and sock it away into savings and investment accounts. If you don’t do that, what happens? You end up using it for something else. Pay yourself first and then live on the remainder. For me, I max out my 401k.
01:01
my savings, and then I live off the rest. Second, automate your finances. Set up automatic transfers, payments, savings, bills. It’s critical so you don’t get charged late fees or interest. And again, we don’t want to think about money. We don’t want to worry about it. Worrying about money can be a huge stressor. For me, everything is automated.
01:27
and I leave a sufficient amount of money and backups to prevent overdraft fees and so on, preferably in a high interest checking or savings. Third, make it automatic. Automate retirement account contributions, max out your 401k and your IRAs to take advantage of tax benefits. Take advantage also of compound interest. It’s magical.
01:57
$2,000 a month for 20 years in the S&P 500, you will have over a million dollars. And if you have $1 million in the S&P 500 and you don’t touch it, it will end up being 5 million in 20 years. If you invest in well diversified funds like the S&P 500 for example. Fourth, live below your means. You gotta spend less than you make. Be wary of
02:26
Parkinson’s law, which means expenses will always increase in proportion to your income growth. As you make more, you spend more. Be mindful of keeping up with the Joneses. What does someone else have? It doesn’t matter. Don’t focus on them. Focus on yourself. Frugality is king. I love the quote from Ramit Sethi, where he says, spend extravagantly on the things you love.
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and cut costs mercilessly on the things you don’t. The fifth is invest wisely. This can be a controversial one. Some people are more risky than others. Personally, I tend to be very conservative. Lots of cash and just one investment fund that has over 100 years of success yielding eight to 10%. And that is the S&P 500.
03:24
And I did a whole video on that called the three rules to investing. Some people like real estate, but I don’t want to deal with tenants personally. Again, the goal is freedom and time. The sixth step here is think long term building wealth is a marathon, not a sprint, consistently saving and investing a little over time. Even small amounts can lead to significant financial.
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power through compound interest. Remember the story of the tortoise versus the hare? The slow and steady wins the race. Investing should be boring like watching paint dry. The seventh focus on home ownership depending on economic factors and income levels home ownership may or may not be affordable in theory owning a home assuming you do want to stay there for a while makes a lot of sense and
04:22
the goal to pay off your mortgage. Back to rule four, live below your means. This means you may have to purchase a house below your budget that you can easily afford. My house is perfect. I could afford more. Why? What additional benefits will it provide me? It’s more than enough. You should see Warren Buffett’s house. He bought it at $31,000, gosh, 50, 60 years ago.
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and it’s only $1 million right now. And Warren Buffett is one of the world’s wealthiest people in only a $1 million home. So if he can do it, we can do it. Eight, eliminate debt. Get rid of debt. Pay off higher interest first, duh. But many experts say debt is good. Use other people’s money, right? Perhaps for some, not for me, but in the spirit of automatic and simple, pay off debt.
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It feels good not to be owned by anyone. Example, my house is fully paid off. There’s a financial benefit because everything is now goes to savings or what I like to spend on. But it feels great. Again, I’m not owned by anyone, not even the bank. The Automatic Millionaire Framework is a rock solid method to make money in a sustainable way with no drama, no worry.
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most important, automatic. Thanks for joining me and remember to like, subscribe, and follow, share with your friends, and until next time, go out there and be an All-Star.
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We hope you enjoyed this episode of Dental All-Stars. Visit us online at allstardentalacademy.com
