After one of our early podcast recordings, the Mechanic brought out some books from his library for the Accountant and me to borrow. I choose JL Collins’ The Simple Path to Wealth because I had yet to read it and the Accountant quotes from it quite often.
I very much enjoyed reading and would quickly recommend this book to anyone who is looking to improve their financial situation.
To me the book read like a hammer repeatedly hitting you over the head (meant in the best way possible) in an effort to make Collins’ 4 main themes sink in:
- Save 50 percent of your income;
- The stock market will go up over time;
- Because the stock market will go up over time invest your savings in low-cost index funds; and
- Vanguard is good.
To me, Collins’ opinion on Vanguard is the least important message in this book as there are many low-cost ETF options available. In fact, for those of us in Canada, Collins might not be offering the right advice in this regard (fees for Vanguard funds might be higher than other Canadian ETF options as I discuss here).
But that’s a pretty anal critique.
His other 3 messages are invaluable. Perhaps those of us in the FIRE community already know about these pillars and we have almost certainly read about them in other books, but Collins does an excellent job of both illustrating the facts and inspiring the reader to aim to follow his path.
I will certainly reach for this book anytime I might be tempted to abandon index investing or lower my saving rate.
JL Collins website is here and it has lots of good information on it.
Have you read this book? What did you think? Read a good book lately, let us know…