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J.L. Collins originally wrote the book The Simple Path to Wealth as a series of letters to his daughter, laying down a clear and effective roadmap to financial independence.
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Here are some key takeaways from The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life!
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Money is one of the most powerful tools people have for navigating the complex world. Thus, understanding and mastering it is critical.
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J.L. Collins strongly advises spending less than one earns, investing the difference and avoiding debt.
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Your interests (securing your future) and those of a financial advisor (getting commission from clients) might not align. Sound investing isn’t complicated and can be done by oneself.
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The stock market always goes up in the long term, but it's never a smooth ride. Whether one gains or loses wealth depends on what one does when the market is falling.
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People should save and invest enough to ensure they aren't living paycheck to paycheck. This allows them to pursue passion projects, walk away from toxic work environments, etc.
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A person achieves financial independence when they can live off 4% of their investments and have 25 times more money than their annual expenses.
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“Stop thinking about what your money can buy. Start thinking about what your money can earn,” J.L. Collins said.
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Thanks for reading!
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