The Simple Path to Wealth: Your road map to financial independence and a rich, free life
What if you could achieve financial freedom with a strategy so simple it fits on an index card?
JL Collins, known as the Godfather of FI in the financial independence community, wrote this book as a series of letters to his daughter. It has since sold over a million copies across twenty languages. Collins distills decades of investing wisdom into one powerful formula: spend less than you earn, invest the surplus in low-cost index funds, and avoid debt.
This book cuts through the noise of complicated financial advice. Collins advocates for a straightforward approach centered on the Vanguard Total Stock Market Index Fund. He explains the 4% rule for retirement withdrawals and guides readers through both wealth-building and wealth-preservation phases of life.
The concept of "F-You Money" sits at the heart of Collins' philosophy. This financial cushion gives you the power to walk away from situations that don't serve you, whether that's a job you hate or circumstances beyond your control.
Collins writes in a no-frills, often humorous style that makes complex financial concepts accessible to everyone. He challenges conventional wisdom about debt, homeownership, and the financial industry's self-serving complexity.
Whether you're just starting your career or approaching retirement, this book provides a clear roadmap to financial independence and living life on your own terms.
Interesting Facts
Born From Letters To His Daughter: The book started as a series of letters JL Collins wrote to his teenage daughter Jessica about money and investing. She told him she knew money was important but didn't want to spend her life thinking about it. This eye-opening comment inspired him to create something simple enough for anyone.
Blog To Bestseller Journey: Before becoming a book, the content lived on his blog jlcollinsnh.com starting in 2011. The blog's Stock Series became so popular that Collins eventually organized and polished it into book form. The first edition was published in 2016.
Over One Million Copies Sold: The Simple Path to Wealth has sold more than one million copies across twenty languages. It became an instant New York Times bestseller when the revised edition was released in May 2025.
The Godfather Of FI: Collins is known as the Godfather of Financial Independence in the FIRE community. His straightforward approach has made him a foundational figure in the movement toward early retirement and financial freedom.
Started Investing In 1975: Collins began investing the same year Jack Bogle introduced the first index fund and launched Vanguard. However, he admits he was initially a stock picker and didn't embrace index investing until later in life.
The Self-Cleansing Index Concept: Collins describes VTSAX as self-cleansing because it automatically rotates out failing companies and sectors while rotating in new winners. You don't need to worry about when technology companies will be replaced at the top because you'll automatically own whatever comes next.
Just One Fund Philosophy: The book advocates for investing primarily in VTSAX, Vanguard's Total Stock Market Index Fund. This single fund holds over 3,600 publicly traded US companies. Collins uses this fund himself and his daughter invests in it too.
Fifty Percent Savings Rate: Collins recommends targeting a 50% savings rate of your income. He himself has never had a car payment and lives a modest lifestyle, which gives him the freedom to choose whom he works with and how he spends his time.
The 4% Rule Explained: The book teaches that when you can live on 4% of your investments per year, or your investments total 25 times your annual expenses, you are financially independent. This withdrawal rate allows your wealth to continue growing.
No Marketing Budget Success: The book gained its massive reach entirely through word of mouth. It had no marketing budget behind it. People in the FI community share it because they genuinely want others to know about this information.
Quotes
"The most powerful wealth-building tool that’s available to anyone is to live below your means, and invest the difference." - JL Collins
"There are many things money can buy, but the most valuable of all is freedom. Freedom to do what you want and to work for whom you respect." - JL Collins
"It’s your money and no one will care for it better than you." - JL Collins
"It’s not hard. Stop thinking about what your money can buy. Start thinking about what your money can earn. And then think about what the money it earns can earn." - JL Collins
"The stock market’s wealth-building power over time is nothing short of breathtaking." - JL Collins
"Being independently wealthy is every bit as much about limiting needs as it is about how much money you have." - JL Collins
"Time in the market beats timing the market—keep your investments consistent." - JL Collins
"Seek the least house to meet your needs rather than the most house you can technically afford." - JL Collins
"Fear is perfectly understandable. Nobody wants to lose money. But until you master it, such fear will be deadly to your wealth." - JL Collins
"If your goal is financial independence, it is also to hold as little debt as possible. This means you’ll seek the least house to meet your needs rather than the most house you can technically afford." - JL Collins
"Personally, there is nothing I’d rather buy or own than F-You Money." - JL Collins
"Simple is good. Simple is easier. Simple is more profitable." - JL Collins
"Money can buy many things, but nothing more valuable than your freedom." - JL Collins
"You own the things you own and they in turn own you." - JL Collins
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