"Despite living in an era of unprecedented wealth creation, the financial reality for the average citizen remains precarious. According to David Bach, a 10-time New York Times bestselling author and financial expert, seven out of 10 people are currently living paycheck to paycheck, and half of Americans can't access $1,000 in an emergency. In a recent appearance on The Diary Of A CEO, Bach outlined why so many people remain financially stagnant, and proposed a "one hour a day" strategy to build automatic wealth."
"The solution, according to Bach, lies in a concept he calls "paying yourself first." He advises that, regardless of income level, the first hour of a worker's daily income-roughly 12.5% of their gross pay-must be retained for their own financial future. Bach said he was basing this calculation on the latest Fidelity data on 401(k) millionaires, which showed a population of 654,000 as of January 2026; The Wall Street Journal called these " moderate millionaires," similar to what UBS calls " everyday millionaires." As Bach explained it to host Steven Bartlett, "you're the first person who gets paid" under this system, emphasizing that this money should go directly into a tax-advantaged retirement account like a 401(k)."
Seven of 10 people live paycheck to paycheck and half of Americans cannot access $1,000 for emergencies. Financial stagnation often stems from a lack of a concrete plan rather than insufficient income. A typical workday's earnings are largely consumed by taxes, housing, food, and lifestyle costs, leaving little for the future. The recommended strategy is to "pay yourself first" by retaining the first hour of daily income—about 12.5% of gross pay—and directing it into tax-advantaged retirement accounts such as a 401(k). Fidelity data showed 654,000 401(k) millionaires as of January 2026. Small daily investments (about $27.40) can grow to millions over decades through compound interest.
Read at Fortune
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