United States
The official calculators and guides the book points to for readers in United States, one for each claim.
- 1Compound interest: start early Holds
Investor.gov compound interest calculator (investor.gov/financial-tools-calculators/calculators/compound-interest-calculator), to compare your monthly sum started now and ten years later.
- 2Small spending: cut the daily coffee Weak diagnosis
Consumer Financial Protection Bureau, Your Money, Your Goals toolkit (consumerfinance.gov/consumer-tools/educator-tools/your-money-your-goals/toolkit), to fill in its cash flow budget worksheet and spending tracker.
- 3Pay yourself first: save before you spend Holds with conditions
IRS, 401(k) plans (irs.gov/retirement-plans/401k-plans), to compare its automatic enrolment guidance for these employer-run retirement plans with the plan on offer.
- 4Index funds: own the index Holds
Investor.gov Fund Analyzer (investor.gov/financial-tools-calculators/financial-tools/mutual-fund-analyzer), to estimate what a fund's fees and expenses take from an investment.
- 5Debt snowball: pay off the smallest debt first Holds with conditions
CFPB, How to reduce your debt (consumerfinance.gov/archive/blog/how-reduce-your-debt), to compare the snowball and highest-rate orders on your own debts.
- 6Emergency fund: keep three to six months of expenses in cash Holds with conditions
CFPB, An essential guide to building an emergency fund (consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund), to set a target from your own essential monthly costs.
- 7Assets or salary: wealth comes from owning assets Weak diagnosis
Federal Reserve, Changes in U.S. Family Finances from 2019 to 2022 (federalreserve.gov/publications/files/scf23.pdf), to compare your net worth with your age group's median in Table 2.
- 8Side hustle: start a side business Not established
IRS, Self-Employed Individuals Tax Center (irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center), to check the filing and self-employment tax rules from $400 of net earnings.
- 9Frugality: spending less beats earning more Weak diagnosis
BLS, Consumer Expenditure Survey tables (bls.gov/cex/tables.htm), to compare your household's spending with households on similar incomes.
- 10Mindset: belief creates wealth Not established
Investor.gov, Savings Goal Calculator (investor.gov/financial-tools-calculators/calculators/savings-goal-calculator), to turn a savings target and a date into a monthly figure.
- 11Housing costs: fixed costs decide what a household can save Holds with conditions
Consumer Financial Protection Bureau, Find a housing counselor (consumerfinance.gov/find-a-housing-counselor), to search by ZIP code for approved housing counsellors.
- 12Stock picking: you can pick winning stocks Not established
Investor.gov, Asset allocation and diversification (investor.gov/introduction-investing/getting-started/asset-allocation), to compare how many holdings a portfolio spreads its money across.
- 13Market timing: time the market and cut losses early Not established
Investor.gov, Beginners' guide to asset allocation, diversification and rebalancing (investor.gov/additional-resources/general-resources/publications-research/info-sheets/beginners-guide-asset), to set a time horizon and a rebalancing schedule.
- 14Bitcoin: a hedge against inflation Not established
BLS, Latest consumer price index release (bls.gov/news.release/cpi.nr0.htm) and BLS CPI Inflation Calculator (bls.gov/data/inflation_calculator.htm), to price a holding's start and end dates against consumer prices.
- 15Gold: protection in a crash Not established
CFTC and FINRA investor bulletin, 20 March 2024 (finra.org/investors/insights/buying-physical-gold-or-other-metals), from the Commodity Futures Trading Commission (the US regulator of futures and commodity markets) and the Financial Industry Regulatory Authority (the industry body that oversees US brokerage firms), to read before buying physical gold or other metals.
- 16Rent or buy: buying a home builds more wealth than renting Not established
CFPB, Buying a house (consumerfinance.gov/owning-a-home), to read the Loan Estimate and Closing Disclosure explainers before comparing offers.
- 17Die with zero: spend it down on purpose Holds with conditions
SSA, my Social Security (ssa.gov/myaccount), to see your projected Social Security benefit.
- 18Day trading: you can make a living from it Does not hold
Investor.gov's day trading page (investor.gov/introduction-investing/investing-basics/glossary/day-trading) and FINRA's frequent intraday trading page (finra.org/investors/investing/investment-products/stocks/day-trading), to read both before placing a day trade.
- 19Retirement savings: work out your number and time your state pension Holds with conditions
my Social Security account (ssa.gov/myaccount), to read your earnings record and benefit estimates at each claiming age.
- 20The 4 per cent rule: withdraw about 4 per cent a year in retirement Holds with conditions
IRS, Required minimum distribution FAQs (irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs) and IRS Publication 590-B (irs.gov/publications/p590b), to divide a balance by the Publication 590-B factor for its age.
- 21401(k), ISA and super: use the tax-advantaged accounts first Holds with conditions
IRS 401(k) contribution limits (irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits), to check this year's limit, then ask your plan for its matching formula.
- 22Inflation and cash: currencies are losing value, so cash savings are being destroyed Weak diagnosis
BLS CPI Inflation Calculator (bls.gov/data/inflation_calculator.htm), to price a savings balance against prices since its deposit.