Buying Your Freedom
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This article is based on an interview conducted by host Steve Bartlett, where he sits down with JL Collins to explore one central idea: money is not just about what you can buy, but about the freedom it can earn for you. The full video interview can be found below.
At a time when many people feel trapped by debt, rising costs, and financial anxiety, this conversation offers a refreshing and deeply practical framework for anyone who wants to start—or restart—their journey toward financial independence.
Who Is JL Collins, and Why Do So Many People Listen to Him?
JL Collins is best known for his bestselling book The Simple Path to Wealth*, a book that has quietly changed the financial trajectory of millions of readers around the world. What makes his message resonate is not complexity, but clarity.
Collins didn’t write the book to build a brand or sell courses. He originally wrote it for one person: his daughter. His goal was simple—give her a clear, no-nonsense framework so she could avoid common money traps and design a life with more options and less stress.
Over the years, readers from all backgrounds—teachers, factory workers, tech professionals, and people earning modest incomes—have applied these principles and reached financial independence. At the same time, Collins has seen the opposite: people earning hundreds of thousands, even millions per year, who remain financially fragile because their spending rises just as fast as their income.
The lesson is clear: wealth is less about how much you earn and more about how you think and behave with money.
The Core Idea: Money Should Buy Freedom, Not Just Stuff
One of the most powerful reframes in the interview is how Collins challenges the way culture teaches us to think about money.
Most people are trained to see money only as something to spend:
What can I buy? What lifestyle does this unlock? What does this say about me?
Collins argues that this mindset keeps people stuck. There is another, more powerful question to ask:
What can my money earn?
When money is invested wisely, it begins to work for you. Over time, this reduces your dependence on a paycheck, an employer, or a situation you no longer want to tolerate. That, in Collins’ words, is real freedom.
The Simple Path to Wealth: Three Principles That Change Everything
At the heart of Collins’ philosophy are three deceptively simple rules:
- Avoid debt
- Live on less than you earn
- Invest the surplus
These principles are not glamorous, but they are effective. Collins emphasizes that debt—especially consumer debt—is a ball and chain. It limits your options, drains your future income, and makes financial independence nearly impossible.
Living below your means is not about deprivation. It’s about choosing what matters most. Collins often says he wasn’t “giving things up”—he was buying his freedom.
Why Buying a House Too Early Can Work Against You
One of the most controversial topics in the interview is Collins’ view on homeownership, especially for young people pursuing financial independence.
His argument is not that buying a house is always bad. It’s that most people buy too much house, too soon, and from a position of weakness.
Banks and real estate systems are designed to push buyers to borrow the maximum amount possible. Once purchased, a home often increases cost of living through maintenance, taxes, renovations, furnishings, and unpredictable expenses. The mortgage, as Collins puts it, is just the starting point.
Renting, on the other hand, often provides lower fixed costs and—just as important—flexibility. For people early in their careers, the ability to move for opportunity can be far more valuable than ownership.
Collins sees homes as lifestyle choices, not automatic investments. If you can easily afford one and it improves your life, great. But if it delays your ability to invest and build assets, it may cost you far more in the long run.
Investing Without Guessing: Why Simplicity Wins
When the conversation turns to investing, Collins is clear and consistent. He does not advocate stock picking, market timing, or chasing trends.
Instead, he recommends broad, low-cost index funds—particularly total stock market funds like Vanguard’s VTSAX, which represents ownership in virtually every publicly traded U.S. company.
The logic is simple:
- You don’t need to predict winners.
- You benefit from innovation automatically.
- Failing companies fall away; successful ones rise.
- Compounding does the heavy lifting over time.
This approach removes emotion, speculation, and constant decision-making—three of the biggest reasons investors underperform.
Note. An Alternative to VTSAX: VTI
An excellent alternative to VTSAX is VTI. Both represent the same underlying investment: the entire U.S. stock market. The difference is how you buy them, not what they invest in.
VTSAX is a mutual fund and typically requires a minimum initial investment (often $3,000). VTI, on the other hand, is an ETF (Exchange-Traded Fund), which trades like a stock and has no minimum investment requirement beyond the price of one share.
This makes VTI especially attractive for beginners or for those starting with very small amounts of money.
Why VTI Works Well for Low-Income or New Investors
Many apps—such as Robinhood—allow investors to buy fractional shares of ETFs like VTI. This means you don’t need enough money to buy a full share.
For example, if one share of VTI costs $250, you can still invest $10, $25, or $50 and own a proportional piece of that ETF.
What Does “Fractional Buying” Mean?
Fractional buying simply means you can purchase a fraction of a share instead of a whole one.
You still get:
- The same market exposure
- The same percentage gains or losses
- The same dividends (paid proportionally)
The only difference is that ownership is split into smaller pieces, making investing more accessible and flexible.
Bottom Line
- VTSAX is ideal if you can meet the minimum investment and prefer mutual funds.
- VTI is ideal if you’re starting small, investing gradually, or using modern investing apps.
Both follow the same philosophy: own the whole market, keep costs low, and let time do the work.
Compounding: The Quiet Force Behind Financial Independence
One of the most eye-opening moments in the interview is when Collins explains compounding. Early on, progress feels slow. Contributions and returns seem to move in parallel. Then, almost suddenly, growth accelerates.
This is why starting early matters so much—and why patience is rewarded.
Even modest, consistent investing over decades can result in life-changing wealth. Collins has seen countless readers reach a point where their investments generate more income than their expenses. At that moment, work becomes optional.
Real Stories, Real Results
Perhaps the most inspiring part of Collins’ work is the diversity of people he has helped.
- A friend who never earned more than $40,000 a year became financially independent by following the principles.
- High-income professionals earning seven figures remained broke due to lifestyle inflation.
- Readers who started late still found clarity, discipline, and peace by simplifying their finances.
Financial independence, Collins emphasizes, is not about status or luxury. It’s about control, choice, and peace of mind.
A Final Thought: Start Where You Are
This is not about perfection. It’s about direction.
Whether you are drowning in debt, just getting started, or already investing, the message is the same:
You don’t need complexity. You need consistency, patience, and a long-term view.
If money has been a source of stress or confusion, this conversation—and The Simple Path to Wealth—offers something rare: a calm, proven roadmap that replaces anxiety with clarity.
And that alone can be the first step toward true financial freedom.
Here’s the full video interview:
Get a copy of JL Collins bestselling book The Simple Path to Wealth*
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