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

by J.L. Collins

Put another way, financial independence = 25x your...

That is, if you are living on $20,000 you have reached financial independence...

Note: You don’t have to implement these last three points literally. Rather, this is a way to think about your assets and income. Most likely, in executing this concept you will want to spend from your earned income while keeping your investments intact and adding to them.

independence and are able to live on 4% of your holdings, should you so choose, now is the time: To begin expanding your lifestyle. Just be sure to keep your spending level at 4% of your holdings. To think about giving like a billionaire as we discussed in Chapter 32. To have children, if you plan to.

To consider buying a house, if you are so inclined. But don’t be in a hurry. Houses are not investments, they are expensive indulgences.