Have you heard of JL Collins? Have you heard of the book, The Simple Path to wealth? If not, then let me tell you, this book is a must gift for Financial freedom seekers.
This is not just a book review, its like a book I followed, even before I read it. After reading it I am happy to say I am on track and will be doing course corrections where I am not yet set.
What do I cover
What is the book The simple path to Wealth about?
What is the book The simple path to Wealth about?
Have you ever wondered about the interesting relation between, common sense and saving money?
The good news is they are. That’s also the bad news. This quick read book by J.L Collins or Mr.Money Mustache is my favorite find this year.
I am a big fan of the mrmoneymustache blog. But this book is a collector’s item, family heirloom and a financial holy book all rolled in one. The best part it’s fun to reads makes sense and will make you wiser and richer.
There is no magic pill and no alternative of working hard, planning well, saving. Also being community-minded is a good way to build up wealth resources as a community. Thinking about the world, reducing carbon footprint, you grow happier, healthier and wealthy. I loved his advice about pension funds and investment diversification the smart way. Just check for the right tax terms in your country.
The book was written by the author as a series of letters to his daughter who had once told him that though she knew money was important, she had more things to think about.
That got the author thinking. So many young people who grow up in comfortable middle-class homes lack the inner wisdom which helps them earn, save and invest wisely. They feel it’s boring discussing finance. But in this book Mr. Collins in his light-hearted humorous tone breaks myths, helps create mindset shifts and gives you actionable goals to help you plan your financial life with grace and common sense. There are no shortcuts and there are no magic pills.
Work hard, earn, save smart and invest smarter. Stay out of mindless credit card debt and you are set.
A must-read for all those who believe in FIRE
The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free LifeWhat does the book cover?
Debt: How to avoid it and what to do if you have it. I hate debt and actively try to stay away from it. Read all about my way of planning the budget for buying a home.
Developing the right money mindset, and how this is crucial to building your wealth. If you believe mindset is everything, then this book will help you start remodeling your brain to think about money the right way.
Where traditional investing advice can be confusing, opaque and what works. How you can rise above the marketing and clutter of investing and find out what works for you without giving yourself a headache.
Truths about the stock market and how it really works. This is important even if you are a pro at stocks as JL Collins breaks down the truth behind the stock market and why you should never try to predict it for anyone else.
Does the stock market always go up? Do most people still lose money investing in it? The biggest reason for market losses have a lot to do with thinking you are, smarter than everyone else and their grandparents.
Specific investments to implement these strategies. Interesting to read and extrapolate according to the country you are living in.
Wealth Building and Wealth Preservation, when and how. This will help you plan your financial life better.
Making sense of your asset allocation. This is in fact right in line with the NPS 2 default method of asset allocation.
He talks about 401(k), 403(b), TSP, IRA and Roth accounts.TRFs (Target Retirement Funds), HSAs (Health Savings Accounts) and RMDs (Required Minimum Distributions). This one again needs to be taken in context of India (your country) taxation, pension schemes, insurances, GPF, PPF.
The con game and how to avoid becoming prey. Frame this and keep this
What financial independence looks like and how to have your money support you. This is the reason I started my journey online. Earn anywhere and live anywhere.
What the 4% rule is and how to use it to safely spend your wealth. I love this and it may give you a few sleepless nights. Make that several/
The truth behind Social Security. In India, this falls under various schemes and you may or may not be benefitted. Makes for interesting reading .
How to use the book in India?
Growing up our family had money troubles. That’s why I wanted to save from a very young age.
3 Things about the PPF account.
Invest as early in the year as possible in your PPF.
PPF accounts interest is calculated from April-to-March. To earn the maximum interest, which is compounded, depositing one time before the 5th of April every year will help maximize your interest for the entire amount. In case you want to pay monthly schedule before the 4th of the months, you should deposit the amount on/before the 5th of April every year. A one-time deposit will earn interest for the whole year.
Checking out the NPS is a good idea. The Jagoinvestor site and their books plus the valueresearchonline.com site give us a good idea about the different funds. I prefer direct funds better than managed funds.
Insurance : Good life insurance and health insurance is a must and diversification with Fixed deposits, recurrent deposits cannot be stressed enough.
Earn, save, invest, stay healthy and grow your wealth.
Strictly no credit card debt. I never travel or shop on credit. I always plan my holidays in advance for the best rate.
Plan my travel for the best rates.
We saved money for the down payment of our home. and bought our home through the SBI Home loan Maxgain account. We also gave full EMI from the very first to plan our budget better.
This book helps you make the right mindset about money and is a must gift for your best friend who wants to be financially free.
Also, try adding some real estate to your portfolio. The steady rents of buy and hold real estate is great! I talk about in my blog if you ever are interested 🙂
It seems an interesting book for me. I wasted a lot of time in my youth without having the knowledge of wealth management. I should have read books like this one you referred to.
I got into many stupid debt traps simply because banks were so happy to give me loans over my salary account. In my experience, I can tell you the first thing anyone wants to avoid is to fell into a debt trap. Believe me, it is not very comfortable.
Yes . Avoiding unnecessary spending and debts are important first steps to be financially free