The Simple Path to Wealth

Your roadmap to a rich, free life — in just five minutes per week.

March 31, 2026

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.”

—Calvin Coolidge

THE SIMPLE NUMBERS

It pays to be early. Let's say you start out with $25,000 at age 25. You invest that in a broad US market index fund (like VTSAX) or an international fund (like VT). And let's say the market returns 10% annually over the 40 years between now and your (approximate) retirement.

Investor.gov's compound interest calculator tells us that even if you never invest another dime, you'd have more than $1,130,000 at age 65. But if you put in $1,000 a month on top of that, you'd have $6,442,592.06 by the end.

That’s the power of compounding. If you start early and stay consistent, it's your power to wield.

SIMPLE PATH OF THE DAY

A slice of timeless wisdom from The Simple Path to Wealth:

"You have probably heard of 'the magic of compounding.' In short, the idea is that the money you save earns interest. That interest then earns interest itself. This causes a snowball effect as you earn interest on a bigger and bigger pool of money. Like a snowball, it starts small, but as it rolls along, it soon begins to grow in a rather spectacular fashion. It’s a beautiful thing."

ASK JL

Q: I just turned 18 and learning about the journey you had with your daughter, I was wondering what words you had for her when she was 18. —Zelda W.

Hi Zelda,

First, congrats on thinking about this stuff at such an early age. Compound returns are very powerful, and the sooner one starts, the longer they have to work their magic.

At 18, my daughter was in college and I don’t recall giving her any special words at that point. Mostly, I had been talking about this all her life and it was simply a continuing conversation—probably more than she cared for at the time. My wife would tell me back then that she was absorbing more than she let on, and that turned out to be true. Looking back, our actions in how we chose to live and use money likely had more impact than any words.

Whatever the case, something stuck. She started on The Path in her 20s and left her corporate gig at age 32 to pursue activities more interesting to her, without having to worry about the money.

—JL

Got a money question keeping you up at night? Reply to this email and we'll get it over to JL.

eight round gold coins on white surface — Compound interest is...more or less this.

WHAT WE'RE READING

📚 Where you live matters. It's harder to save JL's recommended 50% of your income in places like New York, where the local Times found a couple for whom a $500,000 income feels middle class.

📚 A throwback blog from Mr. Money Mustache: "Is it Convenient? Would I Enjoy it? Wrong Question."

📚 Malls are dead. Or are they? The New York Times found Gen Z has a taste for in-person shopping. The currents of the economy rarely flow in the directions we expect.

THE BIG QUESTION

When did you learn about the magic of compounding? Did that knowledge play a role in your decision to get serious about investing?

Reply to this email and we'll feature some of your responses in upcoming issues!

Last time, we asked about your strategy for finding peace in volatile times. Here are a few of your answers...

My strategy is to control who and what has access to my mind. From thieving politicians of all stripes to mainstream media and even some family, everyone has an agenda and the first casualty of war is generally the truth. So, I'm very careful and deliberate with my sources of information. I keep away from palace intrigue and hyperbolic commentary, and I stay on the serene roadmap of The Simple Path to Wealth. —Murray B

I don’t look at my portfolio. I do check the markets every day, but I don’t look at my total investments during crises like this. It helps keep me sane. —Matt M.

I always check the stock app on my phone to see what the market is doing, but when the market is really down, I don’t open Empower or the brokerage apps. If I don’t see the impact to my bottom line, it doesn’t upset me. Geopolitically, it's tougher. I have been listening to less news and more jazz. I guess "ignorance is bliss" is my answer for both! lol! —Brycia J

Stay invested. Turn off the news. Enjoy the outdoors. —Jose V.

I'm enjoying your newsletter. I'm fortunate to be a teacher, so my job is stable for now. To find peace in volatile times, I try to avoid the news and just focus on my day-to-day life. What's important will filter through the noise. I continue to dollar-cost average into low-cost index funds regardless of what is happening in the economy or the world. —S. Hart

While I feel mostly at peace spiritually, when it comes to my money I tend to be a tinkerer. I read the news, I imagine scenarios, I adjust my asset allocation. None of that is for the added gains, which are negligible for the most part. But tinkering helps me stay in balance: it allows me to say, "I did my part." When high water comes, I just know that I did my best. Peace is very important, but once you know that your basic needs are covered, it doesn't depend on money. —Bruno B.