The Rational Reminder Podcast

Episode 376: Climbing The Wealth Ladder

180 snips
Sep 25, 2025
Guest
Nick Maggiulli
Nick Maggiulli, COO at Ritholtz Wealth Management and author, discusses his innovative framework for building wealth in his new book. He outlines six wealth levels and explains how financial strategies should evolve as net worth increases. Nick introduces the 0.01% rule for spending and the importance of income in wealth accumulation. He highlights the opportunity cost of time, challenges of extreme wealth, and the need to build non-financial forms of wealth. Join Nick for a data-driven approach to financial independence and understanding what 'enough' truly means.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Wealth Grows In Distinct Levels

  • Wealth should be framed as discrete levels because decisions change as net worth grows.
  • Nick defines six log-scaled wealth levels from <$10k to $100M+ to map behavior and strategy.
ADVICE

Use The 0.01% Rule For Marginal Spending

  • Use the 0.01% rule to judge marginal spending: multiply net worth by 0.01% to estimate a trivial daily spend threshold.
  • If an expense is below that threshold, Nick says don't worry; allow controlled lifestyle creep after you've built wealth.
ADVICE

Apply The 1% Rule To Income Decisions

  • Apply the 1% rule to income choices: an opportunity should increase net worth by ≥1% to be worth pursuing.
  • Consider time cost too, and avoid low-return gigs that consume significant time for little net-worth impact.
Get the Snipd Podcast app to discover more snips from this episode
Get the app