Financial Expert Shares 'One Hour a Day' Strategy to Build Wealth

David Bach outlines why 50% of Americans remain financially stagnant and how automating savings can create millions in retirement

Published on Feb. 12, 2026

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According to financial expert David Bach, the primary reason people stay broke is not a lack of income, but a lack of a plan. Bach advocates a 'pay yourself first' strategy where the first hour of a worker's daily income - roughly 12.5% of their gross pay - is automatically saved for retirement. He argues this 'one hour a day' approach can lead to over $4 million in savings over 40 years through the power of compound interest. Bach rejects traditional budgeting in favor of automation, warning that unless savings are deducted before the earner sees the money, the plan will fail.

Why it matters

With 7 out of 10 Americans living paycheck to paycheck and half unable to access $1,000 in an emergency, Bach's strategy aims to help the average worker build sustainable wealth, especially as the cost of living continues to rise. His advice comes at a critical time, as the next decade is seen as a pivotal window for wealth generation amid the rise of AI and other technological changes.

The details

Bach, a 10-time New York Times bestselling author, says the average worker's day is a 'systematic drain' on resources, with the first few hours of the day going to taxes and the rest covering housing, food, and lifestyle costs, leaving nothing for the future. His solution is to 'pay yourself first' by automatically diverting 12.5% of gross pay into a retirement account like a 401(k). He illustrates how investing just $27.40 per day can lead to over $4.4 million in savings over 40 years at a 10% annual return. For those with tighter budgets, he suggests a 100-day challenge of saving $10 per day as an initial step.

  • As of January 2026, there were 654,000 401(k) millionaires, according to Fidelity data.
  • The surging price of groceries was a key issue in the elections of both 2024 and 2025.

The players

David Bach

A 10-time New York Times bestselling author and financial expert who spent three decades in the financial services industry.

Steven Bartlett

The host of The Diary Of A CEO podcast, where Bach appeared as a guest.

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What they’re saying

“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).”

— David Bach, Financial Expert (The Diary Of A CEO)

“Unless your financial plan is automatic, it will fail," he warned, noting that corporations already use automation to extract money from consumers through subscriptions and billing, so individuals must use the same tool to pay themselves.”

— David Bach, Financial Expert (The Diary Of A CEO)

What’s next

Bach believes the next 10 years will be a critical window for wealth generation, particularly with the rise of AI, and warns that those who do not automate their finances and acquire assets like stocks and real estate risk being left behind permanently.

The takeaway

Bach's 'one hour a day' strategy provides a practical, automated approach for the average worker to build sustainable wealth, even in the face of rising costs of living. By prioritizing savings before spending, his method aims to help overcome the common pitfalls that leave half of Americans financially stagnant.