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.
Bach, who spent three decades in the financial services industry, argued the primary reason people stay broke is not necessarily lack of income, but lack of a plan. He describes the average worker’s day as a systematic drain on resources: The hours worked from 9 a.m. to 12 p.m. pay the government in taxes, and the hours from 12 p.m. to 3 p.m. cover housing and food. Consequently, most people spend their remaining income on lifestyle costs, leaving nothing for their future.
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.”
