The Diary Of A CEO: "Passive Income Expert: Buying A House Makes You Poorer Than Renting! Crypto Isn't A Smart Investment"

Host: Steven Bartlett
Guest: J.L. Collins (author, financial independence expert)
Date: January 12, 2026

Episode Overview

In this thought-provoking episode, Steven Bartlett sits down with J.L. Collins, author of The Simple Path to Wealth, to challenge deeply ingrained beliefs about money, homeownership, investing, and happiness. They dissect what true financial independence means, confront myths about passive income, and offer actionable, sometimes counterintuitive advice for building wealth and freedom. This conversation is especially relevant to younger listeners, those anxious about debt, and anyone reconsidering the traditional roadmap to financial security.

Key Themes & Discussion Points

1. The Simple Path to Wealth

Core Principles:
- Avoid debt.
- Live on less than you earn.
- Invest the surplus, preferably in low-cost stock index funds.
Quote [26:42]:
J.L. Collins: “Avoid debt, live on less than you earn, invest the surplus.”

2. Rethinking Homeownership

Homeownership ≠ Automatic Wealth:
- Buying a house is often a poor financial decision for young people chasing early financial independence.
- Hidden costs (maintenance, taxes, renovations) and lack of flexibility make renting a smarter choice for many.
Quote [00:59]:
J.L. Collins: “If your goal is to become financially independent at a young age…you probably don’t want to go buy a house.”
Opportunity Costs:
- Money locked in a house often earns nothing; could be invested elsewhere for higher returns.
- Emotional and psychological "anchor": Homeownership reduces flexibility to pursue better opportunities elsewhere.

3. Freedom: The Real Purpose of Money

Reframing Money’s Role:
- Money is not just a means to buy things, but to buy freedom.
Quote [06:10]:
Steven Bartlett: “You can buy your freedom.” J.L. Collins: “You can buy your freedom, your financial freedom.”
F.U. Money:
- The goal isn’t endless wealth but reaching a point where you have the power to say no to toxic jobs, relationships, or obligations—long before full financial independence.
Quote [15:52]:
J.L. Collins: “The moment you start setting aside money and investing it, you become a little bit financially stronger. That builds over time. That, in my mind, is the FU money…”

4. The Emotional Side of Wealth and Spending

Buying for Esteem vs. Freedom:
- Many people (especially when younger) buy things to signal status or boost self-esteem, even at the expense of long-term security.
Competing with the Joneses:
- Higher incomes often lead to higher expenditures due to peer pressure, trapping even high earners in a cycle of paycheck-to-paycheck living.
Quote [13:38]:
J.L. Collins: “…money gives you options…money allows you a lot wider range of choices in life, but it doesn’t necessarily make you happy.”

5. Debt: The Ball and Chain

Impact of Debt:
- “You can never be financially independent if you’re carrying around debt.” [26:49]
- The ‘tyranny of the must-haves’ (e.g., expensive cars, schools, homes) sabotages wealth accumulation.
Debt Repayment Advice:
- Focus on paying off the debt with the highest interest rate first.
- The essential skill is building the discipline to consistently live below your means.

6. Investing: What Works and What Doesn't

Stocks as the Core Wealth-Building Tool:
- "Stocks are the single most effective, strongest wealth building tool that’s ever been created.” [01:45]
Long-Term Horizon is Critical:
- Investing in stocks is unsafe for short-term needs due to volatility but is very reliable over decades.
Quote [47:55]:
J.L. Collins: “If you look long term, stocks are extremely safe and extremely powerful in building wealth, but they are very volatile along the way.”
Avoiding ‘Foam’ and FOMO:
- Trading, stock picking, and chasing hot sectors is a form of gambling. Instead, “own the whole market” via index funds.
Beer & Foam Analogy [88:44]:
- The real value (‘beer’) comes from core business profits; price swings, hype, and bubbles are just ‘foam.’
- Quote: “If you're doing it short term and you're playing with the foam, absolutely is no different than going to Las Vegas. If you're investing for the beer, it's an entirely different story.” [96:39]

7. Speculation and Crypto Skepticism

Bitcoin & Speculative Assets:
- Crypto is speculation, not investment – the future is unknown, and past winners do not guarantee future gains.
- Quote [37:16]:
  “For me, it’s a speculation and I’m not a speculator.”
Lottery, Trading Courses, and Chasing ‘Secrets’:
- Massive skepticism about the get-rich-quick mentality pervasive online.
- Quote [97:35]:
  “If I have some secret about trading… why would I need to sell it if it worked?”

8. How to Actually Invest (Practical Steps)

Index Funds (VTSAX):
- Owns nearly all public US companies — effortless diversification and self-cleansing of winners and losers.
- Quote [81:30]:
  “An example of that is vtsax, which is Vanguard’s Total Stock Market Index Fund. It invests in virtually every publicly traded company in the United States…”
Automatic, Tax-Advantaged Savings:
- Max out workplace pensions (401(k), ISA, SIPP, etc.), especially when there is an employer match.
- Tax deferral multiplies initial contributions.
Asset Allocation:
- J.L. Collins keeps roughly 80% in stocks, 15% in bonds, 5% in cash [106:08].

9. Compounding: The Real Magic

Start Early, Let It Ride:
- Small, consistent investments over long periods produce exponential results.
- “The lesson of compounding: The graph is hockey stick-shaped. For a long time it looks unimpressive; then it skyrockets. Most people can’t believe how much they actually end up with.” [58:57—61:57]

10. Happiness, Regret, and Meaning

Money Removes Unhappiness, Doesn't Buy Joy:
- “Money doesn’t necessarily make you happy, but the lack of money can be a terrible challenge…” [15:10]
Wise Use of Resources:
- Spend on what makes your life better, but don’t expect “stuff” to make you happy.
- Minimalism as Strength:
  - Parable of the Monk and Minister [09:32]:
    Minister: “If you could learn to cater to the king, you wouldn’t have to live on rice and beans.”
    Monk: “If you could learn to live on rice and beans, you wouldn’t have to cater to the king.”
Regret and Perspective [121:01]:
- Regrets are complicated; the wrong turn sometimes leads to the right place.
- Life’s point isn’t about achieving some cosmic significance — just about having “a good run” and treating people well.

Notable Quotes & Moments with Timestamps

On homeownership [00:59]:
“If your goal is to become financially independent at a young age, this is a very controversial thing to say. You probably don't want to go buy a house…”
On freedom [06:10]:
“You can buy your freedom.”
On FU money [15:52]:
“Long before you're financially independent, that money gives you enormous freedom.”
On debt [26:49]:
“You can never be financially independent if you're carrying around debt. It's a ball and chain…"
On compounding [58:57]:
“Compounding is a hockey stick. It goes along and kind of doesn’t appear to be happening. Then all of a sudden, it’s way up here. It happens so quickly and so stunningly they can’t quite believe it.”
On wealth and happiness [13:38]:
“Money gives you options right? Money allows you a lot wider range of choices in life, but it doesn't necessarily make you happy.”
On speculation [37:16]:
“For me, it’s a speculation and I’m not a speculator.”
On ‘trading secrets’ [97:35]:
“If I have some secret about trading that’s really going to make… capable of making one wealthy. And I'm going to give it to you or even sell it to you. Why would I need to, if it worked?”

Timestamps for Pivotal Segments

[00:59] — Why home ownership can make you poorer than renting
[01:45] — The “Simple Path to Wealth” explained
[06:10] — Reframing money as buying freedom
[15:52] — What is "F.U. Money"?
[17:19] — The psychological and financial downsides of owning a house
[26:42] — The “one sentence” path to wealth
[38:20] — Bitcoin, speculation, and the risks
[47:55] — Are stocks “safe” in an AI-driven world?
[52:06] — The wisdom of “invest and forget”
[58:57] — Why compounding is a superpower
[81:28] — Where to actually invest: index funds explained
[88:44] — The ‘beer and foam’ analogy for stock prices
[97:06] — Trading is mostly gambling
[106:08] — J.L. Collins’ asset allocation
[110:37 and 111:32] — Real stories: high income ≠ financial independence; low income can still mean wealth
[121:01] — On regret, life choices, and what really matters

Actionable Takeaways

Live below your means — no matter your income.
Invest early, consistently, and for the long-term, favoring low-cost index funds over speculation.
Avoid or escape debt, especially consumer and lifestyle debt.
Rent for flexibility and opportunity—especially early in your career, rather than tying yourself to a heavy, illiquid home investment.
Don’t conflate money with happiness. Use money for freedom, not status.
Question get-rich-quick schemes. Trading and speculation rarely end well.
Seek high-demand skills to increase your income and options.

Closing Reflection

This episode strips away cultural myths about money and success, equipping listeners with the mindsets, habits, and pragmatic strategies that lead to real freedom and security. Homeownership, it turns out, is rarely the ticket to wealth for ambitious young people; passive investing, discipline, and understanding your motivations are far more effective. As Collins notes, “nothing really matters” in the cosmic sense—so choose actions that give you agency and a good run at life.

Guest’s Website/Books:

Blog: jlcollinsnh.com
Recommended Reading:
- The Simple Path to Wealth
- Pathfinders
- How I Lost Money in Real Estate Before It Was Fashionable

“If you follow it, you will become wealthy. …Once you become wealthy, you can not only buy those things, but you’re buying them from a position of power, right? You can easily afford them.”
— J.L. Collins [62:15]

The Diary Of A CEO: "Passive Income Expert: Buying A House Makes You Poorer Than Renting! Crypto Isn't A Smart Investment"

Host: Steven Bartlett
Guest: J.L. Collins (author, financial independence expert)
Date: January 12, 2026

Episode Overview

Key Themes & Discussion Points

1. The Simple Path to Wealth

Core Principles:
- Avoid debt.
- Live on less than you earn.
- Invest the surplus, preferably in low-cost stock index funds.
Quote [26:42]:
J.L. Collins: “Avoid debt, live on less than you earn, invest the surplus.”

2. Rethinking Homeownership

Homeownership ≠ Automatic Wealth:
- Buying a house is often a poor financial decision for young people chasing early financial independence.
- Hidden costs (maintenance, taxes, renovations) and lack of flexibility make renting a smarter choice for many.
Quote [00:59]:
J.L. Collins: “If your goal is to become financially independent at a young age…you probably don’t want to go buy a house.”
Opportunity Costs:
- Money locked in a house often earns nothing; could be invested elsewhere for higher returns.
- Emotional and psychological "anchor": Homeownership reduces flexibility to pursue better opportunities elsewhere.

3. Freedom: The Real Purpose of Money

Reframing Money’s Role:
- Money is not just a means to buy things, but to buy freedom.
Quote [06:10]:
Steven Bartlett: “You can buy your freedom.” J.L. Collins: “You can buy your freedom, your financial freedom.”
F.U. Money:
- The goal isn’t endless wealth but reaching a point where you have the power to say no to toxic jobs, relationships, or obligations—long before full financial independence.
Quote [15:52]:
J.L. Collins: “The moment you start setting aside money and investing it, you become a little bit financially stronger. That builds over time. That, in my mind, is the FU money…”

4. The Emotional Side of Wealth and Spending

Buying for Esteem vs. Freedom:
- Many people (especially when younger) buy things to signal status or boost self-esteem, even at the expense of long-term security.
Competing with the Joneses:
- Higher incomes often lead to higher expenditures due to peer pressure, trapping even high earners in a cycle of paycheck-to-paycheck living.
Quote [13:38]:
J.L. Collins: “…money gives you options…money allows you a lot wider range of choices in life, but it doesn’t necessarily make you happy.”

5. Debt: The Ball and Chain

Impact of Debt:
- “You can never be financially independent if you’re carrying around debt.” [26:49]
- The ‘tyranny of the must-haves’ (e.g., expensive cars, schools, homes) sabotages wealth accumulation.
Debt Repayment Advice:
- Focus on paying off the debt with the highest interest rate first.
- The essential skill is building the discipline to consistently live below your means.

6. Investing: What Works and What Doesn't

Stocks as the Core Wealth-Building Tool:
- "Stocks are the single most effective, strongest wealth building tool that’s ever been created.” [01:45]
Long-Term Horizon is Critical:
- Investing in stocks is unsafe for short-term needs due to volatility but is very reliable over decades.
Quote [47:55]:
J.L. Collins: “If you look long term, stocks are extremely safe and extremely powerful in building wealth, but they are very volatile along the way.”
Avoiding ‘Foam’ and FOMO:
- Trading, stock picking, and chasing hot sectors is a form of gambling. Instead, “own the whole market” via index funds.
Beer & Foam Analogy [88:44]:
- The real value (‘beer’) comes from core business profits; price swings, hype, and bubbles are just ‘foam.’
- Quote: “If you're doing it short term and you're playing with the foam, absolutely is no different than going to Las Vegas. If you're investing for the beer, it's an entirely different story.” [96:39]

7. Speculation and Crypto Skepticism

Bitcoin & Speculative Assets:
- Crypto is speculation, not investment – the future is unknown, and past winners do not guarantee future gains.
- Quote [37:16]:
  “For me, it’s a speculation and I’m not a speculator.”
Lottery, Trading Courses, and Chasing ‘Secrets’:
- Massive skepticism about the get-rich-quick mentality pervasive online.
- Quote [97:35]:
  “If I have some secret about trading… why would I need to sell it if it worked?”

8. How to Actually Invest (Practical Steps)

Index Funds (VTSAX):
- Owns nearly all public US companies — effortless diversification and self-cleansing of winners and losers.
- Quote [81:30]:
  “An example of that is vtsax, which is Vanguard’s Total Stock Market Index Fund. It invests in virtually every publicly traded company in the United States…”
Automatic, Tax-Advantaged Savings:
- Max out workplace pensions (401(k), ISA, SIPP, etc.), especially when there is an employer match.
- Tax deferral multiplies initial contributions.
Asset Allocation:
- J.L. Collins keeps roughly 80% in stocks, 15% in bonds, 5% in cash [106:08].

9. Compounding: The Real Magic

Start Early, Let It Ride:
- Small, consistent investments over long periods produce exponential results.
- “The lesson of compounding: The graph is hockey stick-shaped. For a long time it looks unimpressive; then it skyrockets. Most people can’t believe how much they actually end up with.” [58:57—61:57]

10. Happiness, Regret, and Meaning

Money Removes Unhappiness, Doesn't Buy Joy:
- “Money doesn’t necessarily make you happy, but the lack of money can be a terrible challenge…” [15:10]
Wise Use of Resources:
- Spend on what makes your life better, but don’t expect “stuff” to make you happy.
- Minimalism as Strength:
  - Parable of the Monk and Minister [09:32]:
    Minister: “If you could learn to cater to the king, you wouldn’t have to live on rice and beans.”
    Monk: “If you could learn to live on rice and beans, you wouldn’t have to cater to the king.”
Regret and Perspective [121:01]:
- Regrets are complicated; the wrong turn sometimes leads to the right place.
- Life’s point isn’t about achieving some cosmic significance — just about having “a good run” and treating people well.

Notable Quotes & Moments with Timestamps

On homeownership [00:59]:
“If your goal is to become financially independent at a young age, this is a very controversial thing to say. You probably don't want to go buy a house…”
On freedom [06:10]:
“You can buy your freedom.”
On FU money [15:52]:
“Long before you're financially independent, that money gives you enormous freedom.”
On debt [26:49]:
“You can never be financially independent if you're carrying around debt. It's a ball and chain…"
On compounding [58:57]:
“Compounding is a hockey stick. It goes along and kind of doesn’t appear to be happening. Then all of a sudden, it’s way up here. It happens so quickly and so stunningly they can’t quite believe it.”
On wealth and happiness [13:38]:
“Money gives you options right? Money allows you a lot wider range of choices in life, but it doesn't necessarily make you happy.”
On speculation [37:16]:
“For me, it’s a speculation and I’m not a speculator.”
On ‘trading secrets’ [97:35]:
“If I have some secret about trading that’s really going to make… capable of making one wealthy. And I'm going to give it to you or even sell it to you. Why would I need to, if it worked?”

Timestamps for Pivotal Segments

[00:59] — Why home ownership can make you poorer than renting
[01:45] — The “Simple Path to Wealth” explained
[06:10] — Reframing money as buying freedom
[15:52] — What is "F.U. Money"?
[17:19] — The psychological and financial downsides of owning a house
[26:42] — The “one sentence” path to wealth
[38:20] — Bitcoin, speculation, and the risks
[47:55] — Are stocks “safe” in an AI-driven world?
[52:06] — The wisdom of “invest and forget”
[58:57] — Why compounding is a superpower
[81:28] — Where to actually invest: index funds explained
[88:44] — The ‘beer and foam’ analogy for stock prices
[97:06] — Trading is mostly gambling
[106:08] — J.L. Collins’ asset allocation
[110:37 and 111:32] — Real stories: high income ≠ financial independence; low income can still mean wealth
[121:01] — On regret, life choices, and what really matters

Actionable Takeaways

Live below your means — no matter your income.
Invest early, consistently, and for the long-term, favoring low-cost index funds over speculation.
Avoid or escape debt, especially consumer and lifestyle debt.
Rent for flexibility and opportunity—especially early in your career, rather than tying yourself to a heavy, illiquid home investment.
Don’t conflate money with happiness. Use money for freedom, not status.
Question get-rich-quick schemes. Trading and speculation rarely end well.
Seek high-demand skills to increase your income and options.

Closing Reflection

Guest’s Website/Books:

Blog: jlcollinsnh.com
Recommended Reading:
- The Simple Path to Wealth
- Pathfinders
- How I Lost Money in Real Estate Before It Was Fashionable

“If you follow it, you will become wealthy. …Once you become wealthy, you can not only buy those things, but you’re buying them from a position of power, right? You can easily afford them.”
— J.L. Collins [62:15]

wavePod

Passive Income Expert: Buying A House Makes You Poorer Than Renting! Crypto Isn't A Smart Investment

Powered by Wave AI

Summary

The Diary Of A CEO: "Passive Income Expert: Buying A House Makes You Poorer Than Renting! Crypto Isn't A Smart Investment"

Episode Overview

Key Themes & Discussion Points

1. The Simple Path to Wealth

2. Rethinking Homeownership

3. Freedom: The Real Purpose of Money

4. The Emotional Side of Wealth and Spending

5. Debt: The Ball and Chain

6. Investing: What Works and What Doesn't

7. Speculation and Crypto Skepticism

8. How to Actually Invest (Practical Steps)

9. Compounding: The Real Magic

10. Happiness, Regret, and Meaning

Notable Quotes & Moments with Timestamps

Timestamps for Pivotal Segments

Actionable Takeaways

Closing Reflection

Summary

The Diary Of A CEO: "Passive Income Expert: Buying A House Makes You Poorer Than Renting! Crypto Isn't A Smart Investment"

Episode Overview

Key Themes & Discussion Points

1. The Simple Path to Wealth

2. Rethinking Homeownership

3. Freedom: The Real Purpose of Money

4. The Emotional Side of Wealth and Spending

5. Debt: The Ball and Chain

6. Investing: What Works and What Doesn't

7. Speculation and Crypto Skepticism

8. How to Actually Invest (Practical Steps)

9. Compounding: The Real Magic

10. Happiness, Regret, and Meaning

Notable Quotes & Moments with Timestamps

Timestamps for Pivotal Segments

Actionable Takeaways

Closing Reflection