The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life

by J.L. Collins

Avoid debt. Nothing is worth paying interest to own. Avoid fiscally irresponsible people and certainly don’t marry one.

Don’t get trapped by an expanding lifestyle or unwind it if you already are. Save and invest at least 50% of your income. Put this in VTSAX or one of the other options we’ve discussed in this book. Fund any 401(k)-type employer tax-advantaged plan you are offered. Fund your Roth IRA when your earnings and the income taxes on them are low. Fund your Traditional IRA once your earnings and the income taxes on them begin to rise.

Once 4% of your assets can cover your expenses, consider yourself financially independent. Put another way, financial independence = 25x your annual expenses.

As you can see, being financially independent is every bit as much about controlling your needs as it is about building your assets.