Takeaways from the Simple Path to Wealth

may 24, 2025

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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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Master money 

J.L. Collins strongly advises spending less than one earns, investing the difference and avoiding debt.

Live below your means 

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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.

Be your own financial advisor 

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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. 

Avoid debt 

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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.

Save and invest

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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.

The 4% rule 

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“Stop thinking about what your money can buy. Start thinking about what your money can earn,” J.L. Collins said.

Final thoughts 

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Aristotle's lessons on personal finance

Thanks for reading!

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