The Simple Path Revisited in 2025 With JL Collins | Ep 547

ChooseFI

Brad Barrett | Choose FI Media

Financialindependence, Investing, Firemovement, Passiveincome, Frugalliving, Personalfinancepodcast, Daveramsey, Careers, Business, Earlyretirement, Habits

4.8 • 5K Ratings

🗓️ 19 May 2025

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this episode, JL Collins discusses the transformative principles of financial independence outlined in his renowned book, The Simple Path to Wealth. Collins emphasizes the simplicity of investing, the power of living below your means, and the crucial role of compounding returns in achieving financial freedom. The conversation also touches on the newly revised edition of the book, addressing updated data and emergent financial topics, including cryptocurrency, all while maintaining the core philosophy that has empowered millions.

Key Takeaways:

Financial Freedom's Core: Understanding that financial freedom is achievable through deliberate actions—avoiding debt, living on less than you earn, and investing wisely.
The Power of Compounding: Small, consistent investments can lead to significant wealth over time due to compounding returns.
Market Downturns as Opportunities: Viewing market declines as chances to buy stocks at lower prices rather than reasons to sell.
Simplicity in Investing: Collins advocates a straightforward approach to investing, primarily using low-cost index funds.
Revised Edition Highlights: The updated book includes new data, case studies, FAQs, and insights into cryptocurrency while retaining its foundational message.

Timestamps & Key Discussion Points:

The Release of the Revised Book
Discussion on the new 2025 edition of The Simple Path to Wealth and its significance.
Understanding the Simple Path to Wealth
Collins describes how the book began as a personal guide for his daughter and evolved into a life-changing resource for many.
The Importance of Compounding
Explanation of compounding wealth and the misconception that it requires starting at a young age.
Investing in Index Funds
Discussion on the benefits of investing in broad-based low-cost index funds, particularly VTSAX.
Market Trends and Self-Cleansing Funds
Collins introduces the concept of self-cleansing funds and how stock indices adapt to market changes.

Actionable Takeaways:

Embrace investing consistently in low-cost index funds like VTSAX or similar.
Aim for a high savings rate to expedite financial independence.
View market downturns as opportunities to enhance your portfolio.
Set up automatic contributions to investment accounts.
Understand that freedom is the ultimate goal of wealth-building efforts.

Discussion Questions:

What strategies can you implement to live on less than you earn?
How do you feel about the role of compounding in wealth building?

The Simple Path to Wealth - 2025 Edition

Key Quotes:

"If you reach for a star, you might not get one, but you won’t come up with a handful of mud either." [Timestamp: 00:09:31]
"A stock market crash is a gift." [Timestamp: 00:35:31]

Transcript

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0:00.0	Hello and welcome to Chusify. Today in the show, we have an absolute treat. We have the legend J.L. Collins here on the show. And he's going to talk all things Simple Path to Wealth. And what's really exciting is his book, The Simple Path to Wealth, is actually coming out a new version of it, the revised and expanded 2025 edition. From the day we release this,
0:22.2	it's coming out tomorrow. So it's coming on May 20th, 2025. And this book has sold and reached
0:28.9	over a million people. It's sold a million copies, has reached undoubtedly millions. And it is
0:35.5	simply put, the most important book in the FI community. It has changed
0:40.3	millions of people's lives, myself most certainly included. It has helped me sleep at night to a
0:45.2	degree that I can't even describe. And I'm proud and honored to call J.L. a friend. And I'm just so
0:53.1	happy every time he comes on this podcast because
0:55.5	it simply helps people. And this episode is no different. You're really going to enjoy this one.
1:01.1	With that, welcome to choose up by.
1:10.4	J.L., my friend, it is always so good to have you here. Thanks for coming back.
1:14.7	That's always a pleasure to chat with you, Brad. Thanks for having me back.
1:18.8	Yeah. So this is super exciting. You have revised and updated, really, those single most important book in the Phi community, which is the simple path to wealth,
1:28.7	you know I've said this to you before, on any Mount Rushmore of Phi, you are squarely, squarely
1:35.3	in that pantheon. And your book has changed lives all across the world. I know on the, on the new
1:41.7	version, it says over a million copies sold, which is just mind-blowingly extraordinary.
1:47.3	I think probably one in a million or one in 10 million books sell a million copies.
1:51.6	I can't even fathom.
1:52.5	I'm just making that up, of course.
1:53.8	But that is such an extraordinary thing.
1:56.9	And it's a testament to what you've done for our community and what you've done for the world.
2:01.8	So just a heartfelt thank you.
2:04.0	Well, I appreciate that and all those really kind words.
	...

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