10 lessons from JL Collins' "The Simple Path To Wealth!


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Chapters

00:00 Start Here
00:35 Master Money
01:34 Be Your Own Financial Advisor
02:41 Live A Simple Life
05:01 Debt Is Unacceptable
06:07 Have F-You Money
07:03 Buy Index Funds
08:17 Don’t Watch To The News
09:25 The Market Always Goes Up, But It’s Never A Smooth Ride
10:42 Marry A Financially Responsible Person
11:36 The 4% Rule


One of the most influential personal finance books I've read is, "The Simple Path To Wealth," by JL Collins. This book completely changed my relationship with money and investing. In this video, I share 10 key takeaways from this book.

1. Master Money

Although we have more important things to do in life than constantly think about money, it is important to learn about it and master it because if you don't then it will master you. Take the time to understand how to manage and invest money.

2. Be Your Own Financial Advisor

The problem with financial advisors is that your interests and their interests don't align. You want to make as much money possible and be comfortable in the future and the financial advisor wants to get commissions and fees from their clients. Nobody is going to take better care of your money than you, so it is important to take charge of your own investments.

3. Live A Simple Life

Many people choose to live a complex life of abundance; however, this makes life a lot more challenging. If you choose to live a more simple life, you will have less worries, less responsibilities, and more freedom to do what you want in life.

4. Debt Is Unacceptable

Debt is normalized in our society where people view it as a ticket to the good life; however, this "good life" hurts them more than helps. Debt limits what you can do in life, so it is important to avoid it at all costs, or if you're in debt, focus on paying it off.

5. Have F-You Money

You don't need to be a millionaire to have freedom in life, but you just need "F-You Money," which is enough money that gives you the ability to tell people "F-You." Money can buy a lot of things, but the best thing it can buy is the ability to tell people "F-You."

6. Buy Index Funds

The basis of this books is to invest your money in index funds over stocks because index funds will be much more profitable for the average investor. Index investing is a slow and steady approach to building wealth in your life.

Video on index funds:    • Index Investing For Beginners In 2024...  

7. Don’t Watch To The News

All the financial news talks about are economic doomsday stories that make people panic and it is because it is a very profitable industry. There is no benefit to watching the news, so avoid it all together.

8. The Market Always Goes Up, But It’s Never A Smooth Ride

Many people obsess over short term results in the market; however, the short term is irrelevant to building wealth because in the last 100 years the market has always gone up. Investing is rewarding, but you can't reap the rewards without the risk. It is important to trust the process and don't panic sell when the market is down.

9. Marry A Financially Responsible Person

Probably the biggest financial decision you will make in your life is who you marry and if you marry someone who is financially irresponsible, your life will be affected by their decisions. It is important to marry a financially responsible person.

10. The 4% Rule

When it comes to building wealth, there is the wealth accumulation phase and the wealth preservation phase. You reach the wealth preservation phase when you reach "The 4% Rule," which is once you can live off of 4% of your investments, you are financially independent meaning that your money will outlive you.

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