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.
  - If you don’t even have the money invested somewhere to allow you to pay for a car in cash, you are obviously far too poor to buy that car.
  - Buy good used ones.
- 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.
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.

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