Simple Path to Wealth Book Review

The simple path to wealth is a book written by JL Collins that originated from his blog at https://jlcollinsnh.com/. He wrote a series of letters to his then 19 year old daughter on ways to become wealthy. Once his blog garnered popularity, he decided to put all these together and make this book. Here is the simple path to wealth book review:

I really enjoy this book and would highly recommend it to anyone who wants to become wealthy in the simplest way possible. Collins lays out complicated things, like investing, into very simple terms and makes it easy to understand. I love everything he teaches and follow it closely. Here’s some of the main points of what he teaches and how we apply it.

Avoid debt

This one is pretty self-explanatory, but is always a good reminder. The main point that JL Collins makes is that debt will seriously inhibit your path to wealth and should be avoided as much as possible. “Carrying debt is as appealing as being covered with leeches, and has much the same effect.”

Build up “FU” money

FU money grants you the ability to have options and to be able to say “no”. This is probably my favorite concept of his. I love the idea of being able to have my options open and a good amount of money set aside.

The market always goes up

The stock market is a volatile but through those years of volatility, it has always managed to go up. If you view your investments as long term, you will be far better off than trying to time the market.

You can invest on your own, without an advisor

Collins suggests investing in Vanguard funds and doing it by yourself. With a little bit of knowledge about index funds, you can easily manage your own portfolio, without having to pay advisors. Collins suggest a total stock market index fund called VTSAX or a similar one (we buy VTI).

This book may be the only book you will ever need to meet your financial needs. It’s simple, yet gives you essential knowledge for wealth building. To buy the book you can find it on audible or with the link below. Leave comments if you have any questions or if you’ve read the book already.