The Simple Path To Wealth Book Summary

Book Summary

15 min

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Brief Summary

When it comes to investing, simple is best. The world of personal finances is a long-term game, rather than a short sprint. Living paycheck to paycheck will not allow for your money to grow; you need to invest it, without overcomplicating the process.

Understanding that the market has a natural ebb and flow is crucial to investment success. Learn to overcome emotions when investing, as well as your appetite for risk. Remember, if it looks too good to be true, it probably is. Index funds such as VTSAX are the best choice for consistent growth.

As you navigate retirement, be sure to consider that Social Security benefits may not benefit you by the time you retire; the world is an ever-changing place. Plan as if you will not have any benefits, and celebrate later if you can claim them.

About the Author

J L Collins is a financial writer, blogger, speaker, and author. Collins has become a leading voice for Financial Independence as well as the Retire Early (FIRE) movement. He’s known for his straightforward and easy-to-replicate approach to investing. Collins clearly unfolds index fund investing, debt elimination, and financial independence for his audience, while giving them confidence through common-sense explanation.

Topics

Money & Investments

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Key Insights

In “The Simple Plan to Wealth,” by J L Collins breaks down the complexities of personal finances. Instead of introducing you to a new hack that will make you millions, Collins explains how to get your personal finances in order through basic, direct, and easy-to-understand guidelines.

This book is an opportunity to filter out the new-age noise of personal finances and open up your mind to a strategy that will help you build a solid foundation for the growth of funds.

Collins will touch on investing, retirement, as well as a tangible approach to the market, to help anyone who’s ready to take control of their finances understand the intuitive principles it takes to grow their funds confidently in the long term.

Key Points

This Is How To Become Financially Independent

Money holds a tight grasp on our lives. It prevents us from leaving the job we hate, going on vacations, and taking time to do the things we enjoy. Money is a must-have, but it can also feel like a burden when you’re on a tight budget. So, what do you need to feel free? The answer is F-You Money, a savings account that allows you to have more freedom when it comes to money and choices in your life.

To acquire F-You Money, it’s important to change how you think about money. It’s easy to become swept up by what money can buy you immediately. We all love instant gratification! But, what if you turned your thinking to what money can buy you in the future? Think of money as an active worker, like yourself, building overtime in investments. If you switch your mindset, you’ll easily be able to understand how money can accumulate and grow over time and what happiness and freedom it will provide your future self.

Whenever you spend money in the present, whether it’s on a bag of chips and a soda or an expensive new television, you are sacrificing that money’s potential. Instead of blowing that extra money from your paycheck on something frivolous, invest it. Not only will this help grow your account, but it will also serve as a good practice of financial responsibility, building your financial confidence.

Along with investing, you should avoid all debt, especially high-consumer debt. Think about this: every dollar you are spending on interest, you’re working for someone else’s account, not yours. That interest money could have gone into a personal investment for your benefit. You are essentially throwing away your money’s potential.

Saving should also be a top priority. Your goal should be to save 50% of your income. Of course, this means you will have to learn the practice of living frugally.

When it comes to investing, it’s vital to look beyond the numbers. Of course, numbers are important, but all companies have figures that go up and down. More importantly, you need to look at sturdy companies because those are the ones that will remain protected over the years, meaning your money will be protected too.

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