Book quiz
The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life Quiz
The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free LifeJL CollinsCollins's daughter told him she needed money but didn't want to think about it. So he started writing her letters, and those letters grew into this book. Collins explains why savings give you freedom and a salary doesn't, why debt holds you back from getting rich, and why one simple fund can be wiser than a hundred…
Question 1 of 5
Your leave request was refused, and your savings would cover six months. What does that money give you, per Collins?
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Right answer: The right to say "no" and leave if it matters
When Collins was refused leave, he quit, because money to live on was already saved. Savings can buy freedom.
Question 2 of 5
According to Collins, what decides how soon you'll have money for freedom?
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Right answer: The share of income you set aside
As in the parable of the monk, freedom also comes from living below your means. The bigger the share you save, the sooner freedom arrives.
Question 3 of 5
How does Collins see owning your home?
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Right answer: As an expensive indulgence, not an investment
Collins doesn't see a house as an investment that makes you richer. To him a house is an expensive pleasure, not an investment.
Question 4 of 5
Why do so many people lose money in a rising market?
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Right answer: They sell in a panic when prices fall
The market can rise while a person still loses. The reason, Collins says, is that many sell in a panic when prices fall.
Question 5 of 5
Your yearly expenses have gone down. How does this change the path to independence, per Collins?
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Right answer: The sum you need for freedom gets smaller
Independence comes when investments are twenty-five times your yearly expenses. The more modest the expenses, the smaller the sum you need.
Want all of the book's key ideas? Read or listen to its retelling in Livria.