Editor’s Note: This article is based on an in-depth interview with JL Collins conducted by the Mustachian Post. You can watch the full original interview here.
Before he was the “Godfather of FIRE,” JL Collins was simply James Linton—a man from Chicago looking for a way to own his time. In this rare, technical sit-down with the Mustachian Post, Collins reveals the personal history, the travel stories, and the specific mindset shifts that turned a private blog for his daughter into a global financial revolution.
1. The “Nonsensical” Name: From New Hampshire to the World
One of the most frequent questions in the community is the meaning behind the URL jlcollinsnh.com. Collins admits that the “NH” stands for New Hampshire, where he lived when he started the blog in 2011.
“I never dreamed I’d have an audience,” Collins explains. “I just wanted to share these letters with my daughter so she wouldn’t have to worry about money.” Today, he no longer lives in New Hampshire, making the name a “nonsensical” but permanent fixture of financial history.
2. The Power of “Opportunity Cost”
A central theme of the interview is how Collins views every dollar not as currency, but as Life Energy. This is the core of “Opportunity Cost.”
- The Choice: Every time you spend $100 on a depreciating asset, you aren’t just losing $100; you are losing the decades of compounding that $100 could have generated in VTSAX.
- The Goal: The goal isn’t to be a miser; it’s to ensure that when you do spend, you are buying something more valuable than the freedom that money could have eventually purchased.
3. Mastering the “Emotional” Market
Collins discusses his childhood in Chicago and how being a “Baby Boomer” gave him a front-row seat to multiple market crashes. His conclusion? The math of investing is easy; the psychology is the hard part.
“You must be the master of your emotions,” says Collins. Whether the market is at an all-time high or a terrifying low, the “Simple Path” only works if you have the endurance to ignore the noise and keep your hands off the steering wheel.
4. Wealth as a Passport: The 1980s Nomad
In a rare departure from finance, JL shares stories of traveling through India, Nepal, and Switzerland in the 1980s. These experiences were fundamental to his definition of wealth. For Collins, money was never about the “stuff”; it was about the ability to route his flight through Geneva and spend five days with friends just because he could.
Frequently Asked Questions (FAQ)
What does “JL” stand for in JL Collins?
His full name is James Linton Collins. Linton is a family name that has been passed down through generations.
Why is the blog called jlcollinsnh.com?
It was created while JL was living in New Hampshire. All other versions of his name were taken, so he added “NH” to the end. Despite moving away years ago, the name stuck as the blog grew in popularity.
What is JL Collins’ “Opportunity Cost” theory?
It is the idea that you should evaluate every purchase based on what that money could have become if invested. It’s a tool to help you prioritize long-term freedom over short-term consumption.
Did JL Collins live in Switzerland?
No, but he traveled there extensively in the 1980s. His global travels helped shape his view that F-You Money is the ultimate tool for a well-lived life.
Is owning a home actually a good investment?
According to JL Collins, most people view their home as an asset, but it is actually an “expensive indulgence.” In the video below, JL explains why the hidden costs—maintenance, taxes, and the “Opportunity Cost” of tied-up capital—often make renting a superior financial move for those seeking independence.
Watch: Is Owning a House Still Worth It?
“A mortgage is the minimum you will pay for housing; rent is the maximum.” — JL Collins
What is the “Opportunity Cost” of buying a house?
Opportunity cost is the profit you give up by choosing one investment over another. If you put $50,000 into a home down payment, you lose the compounding growth that money would have earned in a total stock market index fund (VTSAX). Over 30 years, that “missed” growth often far exceeds the equity gained in the home.
What is JL Collins’ personal investment portfolio?
Many readers wonder if the “Simple Path” is just for beginners. In the interview below, JL Collins reveals that he remains highly aggressive even in his 70s, maintaining an 80/15/5 split. He discusses his preference for VTSAX and why he keeps a small percentage in bonds and cash as “ballast.”
Watch: J.L Collins on His Investment Portfolio & The 3 Pillars of Wealth
Why does JL Collins hold 80% in stocks at his age?
While most financial advisors suggest shifting toward bonds as you age, Collins maintains an 80% stock allocation (specifically VTSAX). He explains that he buys from a “Position of Power”—meaning he has zero debt and modest expenses, allowing him to handle the volatility of the stock market in exchange for long-term protection against inflation
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