10 Lessons From The Simple Path To Wealth That Changed How I Think About Money

10 lessons from JL Collins' "The Simple Path To Wealth!

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Chapters

00:00 Start Here
00:35 Master Money
01:34 Be Your Own Financial Advisor
02:41 Live A Simple Life
05:01 Debt Is Unacceptable
06:07 Have F-You Money
07:03 Buy Index Funds
08:17 Don’t Watch To The News
09:25 The Market Always Goes Up, But It’s Never A Smooth Ride
10:42 Marry A Financially Responsible Person
11:36 The 4% Rule

One of the most influential personal finance books I've read is, "The Simple Path To Wealth," by JL Collins. This book completely changed my relationship with money and investing. In this video, I share 10 key takeaways from this book.

1. Master Money

Although we have more important things to do in life than constantly think about money, it is important to learn about it and master it because if you don't then it will master you. Take the time to understand how to manage and invest money.

2. Be Your Own Financial Advisor

The problem with financial advisors is that your interests and their interests don't align. You want to make as much money possible and be comfortable in the future and the financial advisor wants to get commissions and fees from their clients. Nobody is going to take better care of your money than you, so it is important to take charge of your own investments.

3. Live A Simple Life

Many people choose to live a complex life of abundance; however, this makes life a lot more challenging. If you choose to live a more simple life, you will have less worries, less responsibilities, and more freedom to do what you want in life.

4. Debt Is Unacceptable

Debt is normalized in our society where people view it as a ticket to the good life; however, this "good life" hurts them more than helps. Debt limits what you can do in life, so it is important to avoid it at all costs, or if you're in debt, focus on paying it off.

5. Have F-You Money

You don't need to be a millionaire to have freedom in life, but you just need "F-You Money," which is enough money that gives you the ability to tell people "F-You." Money can buy a lot of things, but the best thing it can buy is the ability to tell people "F-You."

6. Buy Index Funds

The basis of this books is to invest your money in index funds over stocks because index funds will be much more profitable for the average investor. Index investing is a slow and steady approach to building wealth in your life.

7. Don’t Watch To The News

All the financial news talks about are economic doomsday stories that make people panic and it is because it is a very profitable industry. There is no benefit to watching the news, so avoid it all together.

8. The Market Always Goes Up, But It’s Never A Smooth Ride

Many people obsess over short term results in the market; however, the short term is irrelevant to building wealth because in the last 100 years the market has always gone up. Investing is rewarding, but you can't reap the rewards without the risk. It is important to trust the process and don't panic sell when the market is down.

9. Marry A Financially Responsible Person

Probably the biggest financial decision you will make in your life is who you marry and if you marry someone who is financially irresponsible, your life will be affected by their decisions. It is important to marry a financially responsible person.

10. The 4% Rule

When it comes to building wealth, there is the wealth accumulation phase and the wealth preservation phase. You reach the wealth preservation phase when you reach "The 4% Rule," which is once you can live off of 4% of your investments, you are financially independent meaning that your money will outlive you.

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[DesertMav]

This video is spot on. I do the best I can and I am my own financial advisor. I just sent my last payment to pay off my student loans and it feels like a weight has been lifted off of my chest. Now I just have to pay off a small amount of credit card debt and build my emergency fund again. Once that is done, I will be on a solid path.

[victoriawatts]

I continuously STASH “F-you”money! Keep your temper and SAVE your money. If someone makes you angry, or when things are not going well, just smile, and go stash more FU money! 😊BEING FREE IS SUCCESS!!

[airplane]

I like that one: Being my Own Financial Advisor because I can choose for myself of what I want to do with my Money.

[MarkMark-jits]

Debt is unacceptable. Minimise the use of debt and pay it down ASAP. Never use debt for recreational shopping!!

[stilos]

I been struggling financially for years …. And of all the channels I have seen you have made me see things different thank you …. I started applying what you talk about yesterday thank you

[ashtherebel]

My goal is to save! That is my number 1 priority

[trishacarlson]

Simplicity, contentment, & discipline have been my guiding teachers this year <3 . Having said that, I am 1/2 way through to my $ goal this year!

[PatriciaCarrier]

Wow! thank you for this video, you are very wise.
Avoid debt, spend less that you earn, invest the surplus.
Quite simple but true. I agree with you, it is the secret to financial freedom.

[shehnazahmad]

Watching from
Johannesburg
South Africa
🇿🇦

[Ann-tner]

These are some great takeaways from the book. The one I’ve struggled with lately was living a simple life. No matter what I do I keep finding myself wanting that new thing I saw on a Youtube video or TikTok. Also glad fir the sponsor you got, you deserve it ❤

[georgeandrews]

I never watch the news or broadcast television and don't miss either.

[Michelle-bwxg]

Good tips. Currently home burdened but making extra principal payments so someday I will have more flexible decisions about work/job (similar to FU money). It's freeing to have less wants as I get older, yet have goals/dreams to look forward to.

[delayedgratification]

Cannot agree more with this being #1 personal finance book for most people.

[plappin]

Sounds like an excellent book -- congratulations on another sponsor!

[noreenn]

I enjoyed that book, need to read it again. Thanks Austin!

[ronjr]

Thanks for the video. My library only has the audio book version, unfortunately. But, you broke it down well. The part I liked best is fu money. I have used it a couple of times, and there is nothing better !

[compassionatepeercounseling]

Helpful and confirming advice. I want to read that book now. Thank you Austin.

[Moniccamccarty]

This was so good !😊 thank you and I hope you have a wonderful blessed day !

[verygoodboy]

Hey Augustine what software do you use to edit the illustrations buddy looks dope and grabs attention

[alenakozlova-awas]

That's a great book! Read it a while ago and followed his investment advice 😊