Australia

The official calculators and guides the book points to for readers in Australia, one for each claim.

1. 1
   Compound interest: start early Holds

   Moneysmart compound interest calculator (moneysmart.gov.au/budgeting/compound-interest-calculator), to compare starting to save earlier with starting later.

2. 2
   Small spending: cut the daily coffee Weak diagnosis

   Moneysmart budget planner (moneysmart.gov.au/budgeting/budget-planner), to see where your money goes and whether income covers it.

3. 3
   Pay yourself first: save before you spend Holds with conditions

   Moneysmart savings goals calculator (moneysmart.gov.au/saving/savings-goals-calculator), to see how long a regular amount takes to reach a goal.

4. 4
   Index funds: own the index Holds

   Moneysmart, managed funds fee calculator (moneysmart.gov.au/managed-funds-and-etfs/managed-funds-fee-calculator), to compare the effect of fees between funds.

5. 5
   Debt snowball: pay off the smallest debt first Holds with conditions

   Moneysmart, credit card calculator (moneysmart.gov.au/credit-cards/credit-card-calculator), to see how much time and money a higher repayment saves.

6. 6
   Emergency fund: keep three to six months of expenses in cash Holds with conditions

   Moneysmart, Save for an emergency fund (moneysmart.gov.au/saving/save-for-an-emergency-fund), to set a three-month target from your own expenses.

7. 7
   Assets or salary: wealth comes from owning assets Weak diagnosis

   ABS, Household Income and Wealth, Australia (abs.gov.au/statistics/economy/finance/household-income-and-wealth-australia/latest-release), to compare your household's net worth with the mean for your age group.

8. 8
   Side hustle: start a side business Not established

   Australian Business Register, applying for an ABN (abr.gov.au/business-super-funds-charities/applying-abn), to check whether you are entitled to an Australian Business Number (ABN) before applying.

9. 9
   Frugality: spending less beats earning more Weak diagnosis

   Moneysmart, Budget planner (moneysmart.gov.au/budgeting/budget-planner), to list your income and spending side by side.

10. 10
    Mindset: belief creates wealth Not established

    Moneysmart, Savings goals calculator (moneysmart.gov.au/saving/savings-goals-calculator), to turn a savings target and a date into a timeline.

11. 11
    Housing costs: fixed costs decide what a household can save Holds with conditions

    Services Australia, Rent Assistance (servicesaustralia.gov.au/rent-assistance), to check whether it is assessed with an eligible payment or rent change.

12. 12
    Stock picking: you can pick winning stocks Not established

    Moneysmart, Investment diversification (moneysmart.gov.au/how-to-invest/diversification), to check how much of a portfolio rests on one company.

13. 13
    Market timing: time the market and cut losses early Not established

    Moneysmart, Develop an investing plan (moneysmart.gov.au/how-to-invest/develop-an-investing-plan), to write down a time horizon and a risk tolerance.

14. 14
    Bitcoin: a hedge against inflation Not established

    ABS, Latest Consumer Price Index release (abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release) and Reserve Bank of Australia, Inflation calculator (rba.gov.au/calculator/annualDecimal.html), to compare a holding's change with Australian prices.

15. 15
    Gold: protection in a crash Not established

    ASIC's warning about digital gold vault investments, 11 September 2024 (asic.gov.au/about-asic/news-centre/news-items/asic-warns-consumers-of-suspicious-investment-opportunities-in-digital-gold-vaults), to read before putting money into a digital gold vault.

16. 16
    Rent or buy: buying a home builds more wealth than renting Not established

    Revenue NSW, calculate transfer duty (revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/understanding-transfer-duty/calculate-transfer-duty), to work out NSW transfer duty on a purchase price.

17. 17
    Die with zero: spend it down on purpose Holds with conditions

    Moneysmart, Retirement planner (moneysmart.gov.au/retirement-income/retirement-planner), to project your income from super and the Age Pension together.

18. 18
    Day trading: you can make a living from it Does not hold

    Moneysmart's page on CFDs (moneysmart.gov.au/investment-warnings/contracts-for-difference-cfds), to read the loss rate and the leverage warning before trading.

19. 19
    Retirement savings: work out your number and time your state pension Holds with conditions

    Moneysmart retirement planner (moneysmart.gov.au/retirement-income/retirement-planner), to see income from super and the Age Pension together.

20. 20
    The 4 per cent rule: withdraw about 4 per cent a year in retirement Holds with conditions

    ATO, Minimum payments from super (ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/payments-from-super) and Moneysmart, Account-based pensions (moneysmart.gov.au/retirement-income/account-based-pensions), to find the minimum percentage that applies at each age.

21. 21
    401(k), ISA and super: use the tax-advantaged accounts first Holds with conditions

    Moneysmart, choosing a super fund (moneysmart.gov.au/how-super-works/choosing-a-super-fund) and ATO contributions caps (ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/contributions-caps), to compare fees and check this year's cap.

22. 22
    Inflation and cash: currencies are losing value, so cash savings are being destroyed Weak diagnosis

    Reserve Bank of Australia inflation calculator (rba.gov.au/calculator/annualDecimal.html), to see what an earlier balance is worth in today's prices.