Your personal roadmap to financial freedom through small but mighty changes to your money
In a world where you have questions about money and Google has a million different answers, it can be hard to know how to make the most of what you have…
Especially if you don’t have a ton of it.
In Building Wealth on a Dime: Finding Your Financial Freedom, financial educator and Latina Kimberly Hamilton delivers an engaging guide for building wealth through small but powerful changes to your money - even if you’re starting small. As a former student debt warrior turned homeowner, Kimberly knows this experience first-hand, but this book isn’t about her. Through the financial lives of everyday moneymakers like Claire in New York, Tanya in Chicago, and Eric in Portland, Kimberly teaches you how to take control of your finances, eliminate debt, and invest for your financial future. Written in a tone that sounds more like a friend than financial advice, you’ll gain the tools you need - psychological and financial - to change your mindset and achieve your own financial freedom.
In Building Wealth on a Dime, you’ll discover how to shift your financial trajectory “on a dime” and gain confidence in your money ASAP. You’ll also find:
- Efficient techniques for eliminating debt
- How to calculate and implement a guilt-free weekly spending cap
- A complete breakdown on investing for beginners, including the different types of accounts, investments, and methods you need to be strategic
- Completely legal (but rarely talked about) tax loopholes that can save you thousands
- What you need to consider when buying your first home or real estate investment
A can’t-miss handbook for the everyday money maker, working professional, or soon-to-graduate, Building Wealth on a Dime belongs on the bookshelves of anyone seeking to improve their relationship with money and accelerate their journey to financial freedom.
Table of Contents
Preface
1 Million Dollar Habits 1
No. 1: Start Small, Dream Big 3
No. 2: Don’t Compare Yourself to Others 5
No. 3: Automate and Stay Consistent 5
No. 4: Start with Day 1 6
No. 5: Keep It Real 7
No. 6: Invest Early and Often 9
Summary 12
Notes 13
Worksheet: Million Dollar Habits 14
2 Plans Change - So Can Your Money 15
The Story No One Told You 17
The Real Reasons Money Feels Tight 18
A New Plan for Your Money 26
Summary 29
Notes 29
3 Money Mindset and Your Emotions 31
Emotions and Your Money 34
Step 1: Identify Your Money Mindset 35
Step 2: Tackle Your Emotional Spending 41
Step 3: Take Action 46
Summary 47
Notes 48
Worksheet: Shift Your Money Mindset 49
4 Flip the Script on Budgets 51
What a Budget Should Be 53
Step 1: Get Organized 58
Step 2: Set Your Money Goals 64
Step 3: Build Your Budget 73
Step 4: Automate Your Money 80
Summary 85
Worksheet: Build Your Budget 87
5 Tackle Your Debt 95
Develop Your Debt Payoff Plan 101
Find Extra Money to Pay Down Your Debt 114
Accelerate Your Debt Payoff 120
For the Student Debt Warriors 124
Summary 131
Notes 136
Worksheet: Debt Payoff 137
6 Get Your Full Financial Picture 141
Net Worth 143
Your Credit Score 144
Your Liquidity Ratio 146
Your Debt-to-Income (DTI) Ratio 147
How Often Should I Check These Numbers? 149
Summary 151
Worksheet: Get Your Financial Picture 152
7 Invest Early and Often 155
The Magic of Investing: Compound Growth 158
Tanya’s Wealth Journey 163
How Much Should I Invest? 169
Update Your Investment Goals 175
Summary 177
Notes 178
8 Investing 101 179
The Magic of Tax-Advantaged Accounts 181
The Average Money Maker’s Guide to Investments 208
Summary 220
Notes 221
Worksheet: Investing 101 222
9 Beyond the Basics 225
Tanya’s Next Steps 227
How to Open a Brokerage Account 232
For High Income Earners: Consider a Backdoor Roth 240
Get Penalty-Free Access to Your Investments? Using a Roth Ladder 241
Tracking Your Investments Across Multiple Accounts 243
Creating Generational Wealth 243
Summary 249
10 Confessions of a First-Time Homebuyer 251
My Homeownership Journey 253
Lessons Learned 259
11 The Rent Versus Buy Debate 267
Why Buying a House Can Be Difficult 268
The Pros and Cons of Homeownership 272
Questions to Ask Yourself Before Buying a Home 274
Summary 276
Notes 276
12 Nine Steps to Homeownership 277
Real Estate Lingo 278
Step 1: Find Out How Much You Can Afford 282
Step 2: Shop Around for Lenders 289
Step 3: Find Your Home 291
Step 4: Make a Strong Offer 292
Step 5: Finalize Your Mortgage 293
Step 6: Get Your Inspection 294
Step 7: Get Homeowners Insurance 295
Step 8: Final Walk-Through 295
Step 9: Closing Day! 295
Building Wealth with Real Estate 296
Summary 302
Closing 305
Appendix 309
Acknowledgments 317
About the Author 319
Index 321
