Dev Raga Personal Finance 535 JL Collins on debt, housing myths & why simplicity wins (part 1)
Sep 2, 2025
In a compelling conversation, JL Collins, author of 'The Simple Path to Wealth' and a key figure in the FIRE movement, shares his journey from childhood entrepreneur to financial expert. He discusses the complexities of debt, arguing against the conventional wisdom of homeownership as an investment. JL champions the benefits of index funds and explains why simplicity is essential in investing. He also challenges common views on dollar cost averaging, advocating for a disciplined approach to wealth building that fits individual financial goals.
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Early Sales Lessons
- JL Collins sold fly swatters as a child and learned early lessons about earning and rejection.
- He recalls surprising many people said no, showing early exposure to entrepreneurship shapes money mindset.
Live Below Your Means
- Live below your means to build wealth; culture pushes consumerism and makes it hard.
- High income often increases peer pressure to spend, so avoid lifestyle creep early.
Leverage Magnifies Downside
- Debt is risky because leverage magnifies losses as well as gains, and can force ruin in downturns.
- Historical crashes show leveraged investors get wiped out while unleveraged holders recover.
