{"id":17857,"date":"2025-09-13T02:04:11","date_gmt":"2025-09-13T02:04:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/17857\/"},"modified":"2025-09-13T02:04:11","modified_gmt":"2025-09-13T02:04:11","slug":"the-godfather-of-financial-independence-says-young-people-should-do-two-things-to-build-wealth-and-its-not-buying-a-house-which-is-silly","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/17857\/","title":{"rendered":"The \u2018Godfather of Financial Independence\u2019 says young people should do two things to build wealth\u2014and it\u2019s not buying a house, which is \u2018silly\u2019"},"content":{"rendered":"\n

Renowned financial educator JL Collins<\/a> has some advice for millennials and younger generations struggling to build wealth. Collins, widely known as the \u201cGodfather of Financial Independence,\u201d emphasized two fundamental strategies in a recent conversation<\/a> with the comedian\u00a0Hasan Minhaj: Invest in Vanguard Total Stock Market Index Fund Admiral Shares, and rent instead of buying a home.<\/p>\n

Minhaj, who rose to fame as a correspondent on \u201cThe Daily Show\u201d and later hosted Netflix\u2019s Emmy-winning \u201cPatriot Act<\/a>,\u201d interviewed Collins in June about his bestselling book, \u201cThe Simple Path to Wealth<\/a>.\u201d The book, which has sold over one million copies across 20 languages, emerged from Collins\u2019 failed attempts to teach his daughter about money when she was young. Collins spent decades in B2B magazine publishing, but has been investing in the stock market all the while\u2014for over 50 years. He also worked as an investment officer at an international investment research firm, marketing analysis to institutional investors.<\/p>\n

The financial independence community has embraced Collins as a pioneer, with his blog launching in 2011<\/a> after he began writing letters to his daughter about investing concepts she initially showed little interest in hearing. His straightforward approach and real-world experience have earned him recognition as a foundational figure<\/a> in the FIRE (Financial Independence, Retire Early<\/a>) movement.<\/p>\n

During his interview with Minhaj, Collins emphasized his core advice for younger generations: \u201cVTSAX and rent\u201d\u2014a philosophy he says he\u2019s shared with his own daughter, who is now in her early 30s. VTSAX<\/a>, or the Vanguard<\/a> Total Stock Market Index Fund Admiral Shares, provides broad exposure to the entire U.S. stock market with an extremely low expense ratio of just 0.04%.<\/p>\n

The fund, which holds over $1.9 trillion in assets, tracks approximately 100% of the investable U.S. stock market across large-, mid-, small-, and micro-cap stocks. With a current yield of 1.16%<\/a> and a five-star Morningstar rating, VTSAX has delivered strong returns for long-term investors. Collins argues this single fund provides sufficient diversification for most investors while avoiding the complexity and higher fees associated with actively managed funds.<\/p>\n

His second recommendation\u2014renting instead of buying\u2014challenges conventional wisdom about homeownership. Collins told Minhaj that his daughter successfully avoided becoming \u201chouse poor\u201d by choosing to rent, which provided her with the flexibility to make bold career decisions. She recently quit her corporate job, having accumulated what Collins calls \u201cf\u2013k you money\u201d\u2014enough financial cushion to make career changes without being dependent on a paycheck.<\/p>\n

Story Continues <\/p>\n

Collins emphasizes that while homeownership can provide lifestyle benefits such as stability or space for children, it shouldn\u2019t be viewed as a wealth-building strategy. \u201cIf your key goal is building wealth, then owning a house is not gonna contribute to that,\u201d he said in the interview. Instead, he frames real-estate purchases as lifestyle decisions rather than financial investments.<\/p>\n

This perspective aligns with his broader philosophy that emerged from watching his father lose his ability to earn income<\/a> during Collins\u2019 childhood\u2014an experience that motivated him to ensure investments could eventually replace employment income. Collins began saving 50% of his income from his first professional job paying $10,000 annually in 1974, a practice he maintained throughout his career.<\/p>\n

For millennials facing economic challenges including student debt, housing costs, and uncertain employment prospects, Collins\u2019 advice offers a straightforward path forward: invest consistently in low-cost index funds while avoiding the financial burden of homeownership until wealth accumulation goals are met. As he demonstrated through both his own experience and his daughter\u2019s success, this approach can provide the financial freedom to make career and life choices based on personal fulfillment rather than economic necessity.<\/p>\n

You can watch the full conversation between Hasan Minhaj and JL Collins below:<\/p>\n

For this story,\u00a0Fortune\u00a0used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.<\/p>\n

This story was originally featured on Fortune.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Renowned financial educator JL Collins has some advice for millennials and younger generations struggling to build wealth. Collins,…\n","protected":false},"author":2,"featured_media":17858,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[1326,72,16246,176,6412,16245,61,60,174,175],"class_list":{"0":"post-17857","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-building-wealth","9":"tag-business","10":"tag-collins","11":"tag-finance","12":"tag-financial-independence","13":"tag-hasan-minhaj","14":"tag-ie","15":"tag-ireland","16":"tag-personal-finance","17":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/17857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=17857"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/17857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/17858"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=17857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=17857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=17857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}