“Pathfinders” by JL Collins: Key Takeaways

When I first heard about JL Collins’ new book, I knew I had to read it. I’d been a long-time fan of his first book, The Simple Path to Wealth. Pathfinders is a collection of real stories of people on their path to financial independence. It’s not just about investing; it’s about empowerment, taking control of your financial future, and managing the financial fear and uncertainty of adult life. Here are some key takeaways:

1. The FIRE Secret: Achieving financial independence and retiring early (FIRE) is simpler than it seems. The core principles are straightforward:
   • Spend less than you earn.
   • Avoid debt.
   • Invest the difference in a simple, low-cost, broad-based index fund. These principles are all you need for peak financial health.
2. Who Should Read: “Pathfinders” is for anyone who wants to achieve financial independence or at least consider the possibility. It’s for individuals from all walks of life and various financial situations.
3. Real Stories: The book features around a hundred compelling stories from people worldwide, offering practical examples of how to apply the principles in “The Simple Path to Wealth” to unique situations.
4. Pursuit of Financial Independence: Even if you’ve never thought about financial independence, this book can inspire you to be more intentional about your financial path in life.
5. Logical Order: “Pathfinders” is organized by theme in a logical order, starting with defining your financial destination and progressing through the steps required to reach it. It also addresses potential obstacles along the way.
6. Part One: Freedom: Money can buy your freedom, and financial independence provides you with security and the freedom to use your time as you see fit.
7. Part Two: Debt: The book emphasizes avoiding debt, except for mortgages, as it can hinder your journey to wealth by diverting money away from investments.
8. Part Three: Saving: Saving aggressively is essential for achieving financial independence. A higher savings rate shortens the journey to financial freedom.
9. Part Four: Lifestyle Inflation: Avoid succumbing to lifestyle inflation. Instead of spending on unnecessary items, consider investing in assets like the Total World Index Fund, which can pave the way to financial independence.
10. Part Five: Investing: The key is to invest the difference in a simple, low-cost, broad-based index fund to achieve financial growth.
11. Part Six: F-You Money: “F-You Money” allows for bolder decisions and is a step towards financial independence, which is achieved when your investments can support your lifestyle, plus a bit more.
12. Part Seven: Staying the Course: Persistence is vital on the path to financial independence. Staying the course and not getting sidetracked is essential.
13. Part Eight: Family: The “Simple Path” is a straightforward approach that anyone can follow, including families, to secure their financial future.
14. Part Nine: Endgame: Ultimately, following this simple path can lead to the mythical land of financial independence, opening up new worlds and options for you.

“Pathfinders” is not just a book about investing; it’s a comprehensive guide to achieving financial independence and gaining control over your financial future. It’s packed with real-life examples and practical advice that can help anyone, regardless of their current financial situation, work towards a secure and empowered future.