Robert Brokamp

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I'm Robert Brokamp.

Fool on everybody.

I'm Robert Brokamp, and that was JL Collins, the best-selling author of The Simple Path to Wealth, which was updated and re-released in May.

In this replay of an interview I did with JL earlier this year, we discussed the challenges and appeal of being a super saver, the quote-unquote self-cleansing value of index funds, lessons from past market crashes, and how to use the 4% rule.

I really enjoyed my conversation with JL, who is often referred to as the godfather of financial independence, and I think you will too.

So this is a family show.

We'll start with a sentence from your book.

Quote, personally, there is nothing I'd rather buy or own than FU money.

So what is FU money and what was your path to having enough of it?

So according to your simple path to wealth, the first step is saving 50% of your income, which is what you did.

So tell us about how you came up with that percentage and how you managed to live on only half of what you made.

The current savings rate in the US now is less than 4%, well below 50%.

So I could certainly see many people hearing this 50% and saying, there's no way I could do that.

But as you point out, you did it.

And your Pathfinders book has stories of about 100 people who are achieving their financial independence by living below their means.

So given all the stories you've heard, what does the transition look like from being someone who saves maybe 5% to someone who's able to move up to 50%?

What are the first few steps they have to take if they're listening to this interview and they're like, I love that idea.

I'm not there yet.