The Long Term Investor

The Wealth Ladder: How Income, Spending, and Happiness Are Connected With Nick Maggiulli (EP.214)

Jul 23, 2025
Nick Maggiulli, author of the finance blog Of Dollars and Data and the book The Wealth Ladder, shares transformative financial insights. He introduces the 0.01% rule for smarter spending decisions and explains the six levels of the wealth ladder, emphasizing tailored strategies. Maggiulli explores the surprising correlation between income and happiness, while highlighting why focusing on income can drive financial progress. Listeners gain practical frameworks for effective asset allocation tailored to their wealth stage.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

The 0.01% Spending Rule

  • The 0.01% rule defines a trivial spending amount based on your net worth to simplify daily spending choices.
  • It links spending freedom to wealth, allowing confident, scaled lifestyle upgrades as net worth grows.
INSIGHT

Six Wealth Ladder Levels

  • The Wealth Ladder segments net worth into six levels, enabling tailored financial strategies.
  • Each level grants spending freedom in different categories, like grocery or travel, matching growing wealth.
ADVICE

Consider Liquid Net Worth For Spending

  • Use total net worth to define wealth level but consider liquid net worth for spending decisions.
  • Retirees should include retirement accounts as liquid since they provide income for spending.
Get the Snipd Podcast app to discover more snips from this episode
Get the app