The ‘godfather of financial independence’ says young people should do two things to build wealth—and it’s nothing ‘silly’ like buying a house
The famous financial landmark JL Collins has some tips about the millennial generation and young generations that are struggling to build wealth. Collins, which is widely known as “the godfather of financial independence”, confirmed two basic strategies in a modern conversation with comedian Hassan Minhaj: an investment in the stock market index funds at the forefront, and the rent instead of buying a house.
Minhaj, who ascended to fame as a correspondent in the movie “The Daily Show”, later hosted “Act Patriot Act” from Netflix, an interview with Collins in June about his best -selling book, “The Simple Path to Wealth”. The book, who sold more than a million copies in 20 languages, appeared from Collins’s failed attempts to teach his daughter about money when she was young. Collins spent contracts for the publication of the B2B magazine, but was investing in the stock market all the time – for more than 50 years. He also worked as an investment employee in the International Investment Research Company, the marketing analysis of institutional investors.
Collins is great in the personal financing community, as he launched his blog in 2011 after he started writing letters to his daughter on investing concepts that did not initially show great interest in hearing. His direct approach and experience in the real world earned him to recognize him as a basic figure in the movement of fire (financial independence, retired early).
Two simple strategies for Colines to build wealth
During his interview with Minhaj, Collins confirmed his basic advice for young generations: “VTSAX and Rent” – a philosophy that says he participated with his daughter, who is now in the early thirties.
VTSAX, or Vanguard Total Market Market Index Fund provides widespread exposure to the entire stock market with a very low expenses of only 0.04 %. The Fund has more than $ 1.9 trillion of assets and tracks about 100 % of the investment American stock market. With a five -star Morningstar classification, VTSAX has strong returns for long -term investors. Collins argues that this individual fund provides sufficient diversification for most investors while avoiding the complexity and high fees associated with the money managed actively.
His second recommendation – advanced instead of buying – challenge traditional wisdom about home ownership. Collins told Minhaj that his daughter successfully avoided becoming a “poor house” by choosing the rent, which allowed her flexibility in making bold professional decisions. She recently left her commercial function, after she accumulated what Collins “F -K You Money” – for example a financial pillow to make professional changes without relying on a salary.
Collins emphasizes that although home ownership can provide lifestyle advantages such as stability or space for children, it should not be considered a strategy to build wealth. “If your main goal is to build wealth, then having a house will not contribute to it,” he said in the interview. Instead, it prepares real estate purchases as lifestyle decisions instead of financial investments.
This perspective is in line with his broader philosophy that came out of watching his father loses his ability to gain income during the Chouins Children – an experience that he prompted to ensure that investments will eventually be replaced by work. Collins began saving 50 % of his first professional income to pay $ 10,000 annually in 1974, a practice he kept throughout his career.
For the millennial generation facing economic challenges including students ’debts, housing costs, and uninterrupted employment prospects, Collins advice provides a direct path forward: constantly investing in low -cost indicators’ funds while avoiding the financial burden of home ownership so that wealth accumulation goals are achieved. As he showed through both his experience and success, this approach can provide financial freedom to take the choices of professional life and life on the basis of personal fulfillment rather than economic necessity.
You can watch the full conversation between Hassan Minhaj and JL Collins below:
https://www.youtube.com/watch?
For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.
2025-09-16 19:24:00
