Hello. This post is a collection of 26 quotes from the book - The Simple Path to Wealth by J. L. Collins. I hope you enjoy reading these quotes.
The Simple Path to Wealth Quotes
Since money is the single most powerful tool we have for navigating this complex world we’ve created, understanding it is critical. If you choose to master it, money becomes a wonderful servant. If you don’t, it will surely master you.
Carrying debt is as appealing as being covered with leeches and has much the same effect.
Avoid investment advisors. Too many have only their own interests at heart. By the time you know enough to pick a good one, you know enough to handle your finances yourself. It’s your money and no one will care for it better than you.
Life choices are not always about the money, but you should always be clear about the financial impact of the choices you make.
The older I get the more I hold each day precious. I’ve become steadily more relentless in purging from my life things, activities and people who no longer add value while seeking out and adding those that do.
If you intend to achieve financial freedom, you are going to have to think differently. It starts by recognizing that debt should not be considered normal. It should be recognized as the vicious, pernicious destroyer of wealth-building potential it truly is. It has no place in your financial life.
Houses are an expensive indulgence, not an investment. That’s OK if and when the time for such an indulgence comes. I’ve owned them myself. But don’t let yourself be blinded by the idea that owning one is necessary, always financially sound and automatically justifies taking on this “good debt.”
Youth should be spent exploring—building and expanding one’s horizons—not grinding away in chains.
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.
Those who live paycheck to paycheck are slaves. Those who carry debt are slaves with even stouter shackles. Don’t think for a moment that their masters aren’t aware of it.
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. Once you begin to do this, you’ll start to see that when you spend money, not only is that money gone forever, the money it might have earned is gone as well. And so on.
The market is volatile. Crashes, pullbacks and corrections are all absolutely normal. None of them are the end of the world, and none are even the end of the market’s relentless rise. They are all, each and every one, expected parts of the process.
Everybody makes money when the market is rising. But what determines whether it will make you wealthy or leave you bleeding on the side of the road is what you do during the times it is collapsing.
A crash at the beginning of your investing life is a gift. In fact, any pullback in stock prices is a gift while you are in the process of accumulating your wealth. It allows you to buy more shares for your dollars, on sale if you will.
There is no risk-free investment. Once you begin to accumulate wealth, risk is a fact of life. You can’t avoid it, you only get to choose what kind. Don’t let anyone tell you differently.
I can’t pick winning individual stocks and you can’t either. Nor can the vast majority who claim they can. It is extraordinarily difficult, expensive and a fool’s errand. Having the humility to accept this will do wonders for your ability to accumulate wealth.
Before you start trying to pick individual stocks and/or fund managers ask yourself this simple question: “Am I Warren Buffett?” If the answer is “no,” keep your feet firmly on the ground with indexing.
I don’t favor indexing just because it is easier, although it is. Or because it is simpler, although it is that too. I favor it because it is more effective and more powerful in building wealth than the alternatives.
The great irony of investing is that the more you watch and fiddle with your holdings the less well you are likely to do. Fill your basket, add as much as you can along the way and ignore it the rest of the time. You’ll likely wake up rich.
Advisors are expensive at best and will rob you at worst. Google Bernie Madoff. If you choose to seek advice, seek it cautiously and never give up control. It’s your money and no one will care for it better than you. But many will try hard to make it theirs. Don’t let it happen.
The great irony of successful investing is that simple is cheaper and more profitable. Complicated investments only benefit the people and companies that sell them.
A little humility goes a long way in saving your ass and your cash.
If it looks too good to be true, it is. There is no free lunch. Not ever.
As individuals we only have one obligation to society: To ensure we, and our children, are not a burden to others. The rest is our personal choice. Make your own and make the world a far more interesting place.
Avoid debt. Nothing is worth paying interest to own.
Being financially independent is every bit as much about controlling your needs as it is about building your assets.
Hello, I am Deepak Kundu, an avid book reader and quotes collector. I hope you enjoyed reading the above quotes from The Simple Path to Wealth book by J. L. Collins.