The Simple Path to Wealth by JL Collins
Your road map to financial independence and a rich, free life.
- The pursuit of financial independence is not about retirement, but about having options, having enough money and the freedom it provides.
- Save at least 50% of your income.
- Avoid debts.
- Optimize travelling cost by living close to work or doing remote work.
- Don’t buy expensive car.
- Cook at home.
- Invest in low cost index fund.
- The market always go up.
- Never time the market.
- While you are in wealth accumulation phase, celebrate market drops since each dollar will buy you more share.
- Once 4% of your assets can cover your expenses, consider yourself financially independent.
- If you are living on $25,000 you have reached financial independence with $600,000 invested.
- The market always go up.
- Once you’ve reached financial dependent,
- Begin expending your lifestyle still keep your spending level at 4% of your holding.
- Consider having children or buying a house.
References:
- https://www.goodreads.com/book/show/30646587-the-simple-path-to-wealth
- https://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/
Tagged: #book, #spending, #saving, #investing, #rich, #wealth, #compound