Afford Anything

Nick Maggiulli: The Wealth Ladder Has Six Rungs (and Most People Never Climb Past Four)

15 snips
Jul 29, 2025
Nick Maggiulli, COO of Ritholtz Wealth Management and author of 'Just Keep Buying', discusses the evolution of financial strategies across six wealth levels. He explains how methods that work at $10,000 net worth won't apply at $1 million. From 'grocery freedom' for the modest earners to 'travel freedom' for the wealthy, he points out that increasing income, not just frugality, is key to climbing the wealth ladder. Maggiulli also delves into negotiation and investment strategies necessary for advancing through the wealth levels.
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INSIGHT

Wealth Levels Require Different Strategies

  • Wealth levels require different financial strategies as your net worth grows.
  • Spending more as income increases is okay if it increases slower than income to save more.
ADVICE

The 0.01% Spending Rule

  • Use the 0.01% rule to determine daily marginal spending without harming wealth.
  • Spend $100 daily per $1 million net worth as extra spending beyond your income.
INSIGHT

Income Drives Wealth Correlation

  • Income strongly correlates with net worth across all wealth levels.
  • High earning households consistently have greater net worth than low earners regardless of saving habits.
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