The 22 claims

Each claim recurs across popular money books. Each is checked against official United States, United Kingdom and Australian records.

• 2 Holds
• 8 Holds with conditions
• 4 Weak diagnosis
• 7 Not established
• 1 Does not hold

1. 1Compound interest: start earlyDoes starting ten years earlier change the outcome as much as the books say?Holds
2. 2Small spending: cut the daily coffeeIs the daily coffee where the money goes?Weak diagnosis
3. 3Pay yourself first: save before you spendDoes saving automatically make people save more?Holds with conditions
4. 4Index funds: own the indexDo professional fund managers beat a fund that copies the market?Holds
5. 5Debt snowball: pay off the smallest debt firstIs paying the smallest debt first worth what it costs?Holds with conditions
6. 6Emergency fund: keep three to six months of expenses in cashHow much cash should a household keep for a shock?Holds with conditions
7. 7Assets or salary: wealth comes from owning assetsDoes wealth come from what you own or from what you earn?Weak diagnosis
8. 8Side hustle: start a side businessIs a side business a reliable route to wealth?Not established
9. 9Frugality: spending less beats earning moreCan spending less do more than earning more?Weak diagnosis
10. 10Mindset: belief creates wealthCan believing in wealth produce it?Not established
11. 11Housing costs: fixed costs decide what a household can saveDo fixed costs decide how much a household can save?Holds with conditions
12. 12Stock picking: you can pick winning stocksCan an ordinary investor pick the shares that win?Not established
13. 13Market timing: time the market and cut losses earlyCan anyone choose the right moment to buy and sell?Not established
14. 14Bitcoin: a hedge against inflationDoes Bitcoin protect savings against inflation?Not established
15. 15Gold: protection in a crashDoes gold protect wealth when markets crash?Not established
16. 16Rent or buy: buying a home builds more wealth than rentingDoes buying a home build more wealth than renting?Not established
17. 17Die with zero: spend it down on purposeShould savings be spent down on purpose before death?Holds with conditions
18. 18Day trading: you can make a living from itCan trading every day become a living?Does not hold
19. 19Retirement savings: work out your number and time your state pensionCan a retirement be priced as one number?Holds with conditions
20. 20The 4 per cent rule: withdraw about 4 per cent a year in retirementIs the 4 per cent rule still safe?Holds with conditions
21. 21401(k), ISA and super: use the tax-advantaged accounts firstShould the tax-advantaged account come first?Holds with conditions
22. 22Inflation and cash: currencies are losing value, so cash savings are being destroyedIs inflation destroying cash savings?Weak diagnosis