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The Wealth Ladder: Proven Strategies for Every Step of Your Financial Life
From the author of Just Keep Buying, a groundbreaking new framework for building wealth
If you've been spinning your wheels trying to get ahead financially, working more hours, or chasing the latest financial trends, but still find yourself stuck, the problem might not be your work ethic, your boss, or even bad luck. The real issue is likely your approach.
Enter The Wealth Ladder. This revolutionary system doesn’t tell you what to do; it teaches you how to think about your finances. In a world where interest rates, careers, and desires are always shifting, why should your strategy for building wealth stay the same? It shouldn’t. Instead, you need a framework that adapts with you throughout your financial journey.
The Wealth Ladder breaks down wealth into six distinct levels, each requiring a different strategy for advancement. What helps you progress from Level 1 to Level 2 won’t be the same as what propels you from Level 5 to Level 6. Throughout the book, you'll discover the specific do's and don'ts for each stage, from dining out and traveling to housing and lifestyle choices, allowing you to optimize your decisions without financial stress. This tailored approach will transform your financial decision-making, empowering you to ascend the ladder with confidence and clarity.
Because the difference between those who build wealth and those who don't isn’t just about hard work—it's about following the right strategies and focusing time and energy where it matters most. With The Wealth Ladder, you won't need to guess where to put your focus. The path to financial success is clear; the only question left is, are you ready to climb?
If you've been spinning your wheels trying to get ahead financially, working more hours, or chasing the latest financial trends, but still find yourself stuck, the problem might not be your work ethic, your boss, or even bad luck. The real issue is likely your approach.
Enter The Wealth Ladder. This revolutionary system doesn’t tell you what to do; it teaches you how to think about your finances. In a world where interest rates, careers, and desires are always shifting, why should your strategy for building wealth stay the same? It shouldn’t. Instead, you need a framework that adapts with you throughout your financial journey.
The Wealth Ladder breaks down wealth into six distinct levels, each requiring a different strategy for advancement. What helps you progress from Level 1 to Level 2 won’t be the same as what propels you from Level 5 to Level 6. Throughout the book, you'll discover the specific do's and don'ts for each stage, from dining out and traveling to housing and lifestyle choices, allowing you to optimize your decisions without financial stress. This tailored approach will transform your financial decision-making, empowering you to ascend the ladder with confidence and clarity.
Because the difference between those who build wealth and those who don't isn’t just about hard work—it's about following the right strategies and focusing time and energy where it matters most. With The Wealth Ladder, you won't need to guess where to put your focus. The path to financial success is clear; the only question left is, are you ready to climb?
256 pages, Paperback
Published July 24, 2025
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August 2, 2025This is a book that could have been two blog posts. The general framework of the wealth ladder isn’t a bad one, per se. It’s reasonable to think that you need to have different wealth strategies depending on your net worth. For example, if you only have $1,000 in net worth, you’re going to approach it very differently than if you have $1 million. So far, so good. That’s one blog post. And the last section of the book is reasonably good, if a bit surface-level. In it, Maggiulli talks about whether money can buy happiness (yes if you’re poor and/or already happy, not so much if you’re out of poverty and still miserable), and other types of non-financial wealth (relationships, mental and physical health, and free time). That’s a second blog post. But the bulk of the book, in which Maggiulli lays out the six wealth levels and gives advice for what to do in each one and how to proceed to the next level… I’m just not sure who this book is for. Is it for the person at “level 2” ($10-100k net worth) who needs to be told to prioritize their education? Or the person at “level 5” ($10M-$100M net worth) who needs to be cautioned against keeping all their resources in the one business they own? I can’t imagine that anyone at the higher wealth levels is reading this book (they’ve got experts to provide them the same information), and most of the ones at the lower levels need more detailed and more targeted advice. Each of these chapters could have been a paragraph or two and gotten most of the pertinent information across. So, in the end, the framework is a good one, but I don’t know if we needed a whole book about it.
August 19, 2025
It's been a while since I sat down and finished a book in one sitting, which wasn't an audiobook during a road trip etc.
While Maggiulli's first book, Just Keep Buying, is also well-worth the read, this one seemed to be more unique in what it brings to the table, specifically around the categorizations of wealth levels and how one's psychology, wealth building strategies, and personal lifestyle goals should all adjust accordingly based on where one is on 'the ladder'. I particularly liked the the navigation guidance from a growth mindset to a focus on wealth protection mindset at the later steps of the ladder, and about a fair and objective evaluation of the pros and cons to reaching certain rungs of the ladder. This, along with the spending amounts the correspond to each step that psychologically are not worth paying attention to (though I think this is more of a personal argument, and still warrant strong attention perhaps from a and ethical POV, depending on how high up someone is in the ladder), can be fairly liberating to understand, especially once one understanding the difficulties of going from certain steps to the subsequent.
I've heard of others like Scott Galloway having a set number where they never allow their net worth to go beyond, via spending or (mostly) donating, and I think this book provides are fairly clear-eyed case for why that's worth strongly considering once one is in Step 5, the 10M+ rung.
While Maggiulli's first book, Just Keep Buying, is also well-worth the read, this one seemed to be more unique in what it brings to the table, specifically around the categorizations of wealth levels and how one's psychology, wealth building strategies, and personal lifestyle goals should all adjust accordingly based on where one is on 'the ladder'. I particularly liked the the navigation guidance from a growth mindset to a focus on wealth protection mindset at the later steps of the ladder, and about a fair and objective evaluation of the pros and cons to reaching certain rungs of the ladder. This, along with the spending amounts the correspond to each step that psychologically are not worth paying attention to (though I think this is more of a personal argument, and still warrant strong attention perhaps from a and ethical POV, depending on how high up someone is in the ladder), can be fairly liberating to understand, especially once one understanding the difficulties of going from certain steps to the subsequent.
I've heard of others like Scott Galloway having a set number where they never allow their net worth to go beyond, via spending or (mostly) donating, and I think this book provides are fairly clear-eyed case for why that's worth strongly considering once one is in Step 5, the 10M+ rung.
July 29, 2025
Hot damn, I sure do love Nick Maggiulli books. I typically take forever to write reviews after I finish the book, but I had to write this one immediately. Nick is one of my favorite financial authors, and I really hope he continues writing more books. At the end of this book, I realized why I love his writing so much as well -- it’s because he comes from a working-class background.
In short, Nick wrote this book to educate people about what it takes to build your wealth because he noticed there was a gap in this sort of financial literacy. Rather than giving typical advice, he breaks down wealth into different “levels” ($0 - $10,000, $10,000 - $100,000, etc), and he goes up to tier 6 or so where people have 100s of millions of dollars. This book breaks down what it takes to get from one level to the next. For example, he discusses the importance of improving your skills and getting more income in level 2, and then he goes on to discuss the importance of income-generating assets in higher levels.
Personally, I only reached level 2 in my 30s because I have a similar background to Nick, and he gave very good, practical advice for people like myself.
Now, it’s time for what I love most about Nick’s writing. He’s a realist, and throughout his writing, he regularly discusses things like the myth of meritocracy and points to the vast amount of data showing that the greatest indicator of future wealth is being born into wealth. When discussing starting a business, he made a great analogy comparing poor kids to rich kids. He relates it to a poor kid playing a dart-throwing carnival game compared to a rich kid. The poorer kid can only try to hit the bullseye once or twice, but due to the financial security and resources the rich kid has, they can keep throwing the dart until they finally get a bullseye. In our neoliberal, “pull yourself up by your bootstraps” society, not enough people take this kind of stuff into consideration.
So many books and people try to make you feel bad for not being a multi-millionaire like it’s your fault, but coming from his background, Nick is able to give much better advice and empathize. Toward the end of the book, Nick gives a brief biography and highlights how much luck it took to get where he is today. But that’s not the only thing he discusses. He also explains that the luck wouldn’t matter if he didn’t work hard and take advantage of opportunities that came his way, and I think this is how the messaging about wealth should be conveyed.
Anyway, stop reading my review and go buy Nick’s book.
In short, Nick wrote this book to educate people about what it takes to build your wealth because he noticed there was a gap in this sort of financial literacy. Rather than giving typical advice, he breaks down wealth into different “levels” ($0 - $10,000, $10,000 - $100,000, etc), and he goes up to tier 6 or so where people have 100s of millions of dollars. This book breaks down what it takes to get from one level to the next. For example, he discusses the importance of improving your skills and getting more income in level 2, and then he goes on to discuss the importance of income-generating assets in higher levels.
Personally, I only reached level 2 in my 30s because I have a similar background to Nick, and he gave very good, practical advice for people like myself.
Now, it’s time for what I love most about Nick’s writing. He’s a realist, and throughout his writing, he regularly discusses things like the myth of meritocracy and points to the vast amount of data showing that the greatest indicator of future wealth is being born into wealth. When discussing starting a business, he made a great analogy comparing poor kids to rich kids. He relates it to a poor kid playing a dart-throwing carnival game compared to a rich kid. The poorer kid can only try to hit the bullseye once or twice, but due to the financial security and resources the rich kid has, they can keep throwing the dart until they finally get a bullseye. In our neoliberal, “pull yourself up by your bootstraps” society, not enough people take this kind of stuff into consideration.
So many books and people try to make you feel bad for not being a multi-millionaire like it’s your fault, but coming from his background, Nick is able to give much better advice and empathize. Toward the end of the book, Nick gives a brief biography and highlights how much luck it took to get where he is today. But that’s not the only thing he discusses. He also explains that the luck wouldn’t matter if he didn’t work hard and take advantage of opportunities that came his way, and I think this is how the messaging about wealth should be conveyed.
Anyway, stop reading my review and go buy Nick’s book.
July 27, 2025
Nick Maggiulli's The Wealth Ladder arrives at a time when traditional financial advice feels increasingly inadequate for modern economic realities. Following his bestselling debut Just Keep Buying, Maggiulli presents a sophisticated yet accessible framework that challenges the one-size-fits-all approach to wealth building. This isn't another book promising quick riches or universal solutions; instead, it offers something far more valuable—a dynamic system that evolves with your financial circumstances.
The book's central premise is deceptively simple yet profound: what gets you to one level of wealth won't necessarily get you to the next. Maggiulli structures wealth into six distinct levels, from Level 1 (less than $10,000) to Level 6 ($100 million and above), each requiring fundamentally different strategies for advancement and maintenance.
The Architecture of Wealth
Understanding the Six Levels
Maggiulli's framework begins with a stark reality check. The median age of millionaires isn't thirty-something tech entrepreneurs featured in magazines—it's sixty-two years old. This data-driven foundation immediately sets the book apart from get-rich-quick narratives that dominate financial media.
Each wealth level comes with its own spending freedom categories:
Level 1: Paycheck-to-paycheck survival
Level 2: Grocery freedom
Level 3: Restaurant freedom
Level 4: Travel freedom
Level 5: House freedom
Level 6: Impact freedom
This categorization provides immediate practical value. Rather than arbitrary spending rules, Maggiulli introduces the "0.01% Rule"—you can spend approximately 0.01% of your net worth on discretionary purchases without impacting your financial trajectory. For someone with $100,000, that's roughly $10 per decision, which aligns perfectly with restaurant freedom.
Strategic Evolution Across Levels
The book's strength lies in its recognition that strategies must evolve. In Level 1, the focus is survival and building basic skills without taking on destructive debt. Level 2 emphasizes education and career development—"Learn today, earn forever." Level 3 introduces systematic investing with the mantra "Just Keep Buying," while Level 4 requires a fundamental shift toward business ownership since traditional employment hits ceiling effects.
Maggiulli's personal journey from working-class beginnings to Level 4 by age thirty-four provides authentic context. His candid discussion of early career struggles, including being rejected from internships and starting his blog to crickets, resonates with readers facing similar challenges. The three-minute wait for a professor that changed his career trajectory illustrates how seemingly minor moments can create massive outcomes.
The Data-Driven Foundation
Research and Evidence
One of the book's most compelling aspects is its empirical foundation. Maggiulli draws extensively from the Panel Study of Income Dynamics, following the same households over decades to understand wealth mobility patterns. The findings are simultaneously encouraging and sobering: while most people stay within their wealth level over a ten-year period, there's a slight bias toward upward mobility over twenty years.
The financial mobility tables provide realistic expectations for wealth building timelines. Approximately 32% of households move up one wealth level within twenty years, while only 5% manage to climb two levels. These statistics help readers set achievable goals rather than chase unrealistic benchmarks promoted by financial influencers.
The Income-Wealth Connection
Maggiulli demolishes the myth that high wealth and low income commonly coexist. The data consistently shows that households in higher wealth levels also have higher incomes, with the median household income for Level 4 being $196,726 compared to $47,560 for Level 2. This reinforces the book's emphasis on earning strategies as the foundation of wealth building.
Critical Analysis and Limitations
Strengths in Framework and Execution
The book excels in several key areas. The wealth ladder metaphor is intuitive and memorable, making complex financial concepts accessible to general readers. Maggiulli's writing style, honed through years of blogging, strikes an effective balance between analytical rigor and conversational tone. His use of historical anecdotes—from Cleopatra's pearl-drinking to Alfred Nobel's legacy concerns—adds narrative richness without sacrificing substance.
The treatment of leverage as content, code, capital, and labor provides a modern understanding of wealth creation that acknowledges how technology has transformed earning potential. The discussion of how content creation can scale from Level 2 to Level 4 strategies reflects contemporary realities that traditional finance books often miss.
Notable Weaknesses and Oversights
However, the framework has limitations that become apparent upon closer examination. The neat categorization of wealth levels, while useful, can feel artificially rigid. Real financial lives rarely fit such clean boundaries, and the book occasionally underestimates the messiness of actual wealth building journeys.
The geographic and demographic limitations are significant. The framework is heavily weighted toward American experiences and assumes access to stable institutions, educational opportunities, and social safety nets. Readers from different economic contexts may find limited applicability.
Most critically, the book's treatment of inheritance and family wealth feels underdeveloped. While Maggiulli acknowledges his advantages—Stanford education, family support during financial struggles—the framework doesn't adequately address how inherited wealth or family assistance affects ladder progression. This oversight is particularly glaring given the book's emphasis on data and comprehensive analysis.
Beyond the Numbers: Life Philosophy
The Hidden Wisdom
Perhaps the book's most valuable insights emerge in its final section, where Maggiulli grapples with wealth's limitations. His honest reflection that "the most important lesson I've gleaned from the Wealth Ladder is how little your life is impacted by money once you have enough of it" provides crucial perspective often missing from financial literature.
The exploration of different wealth types—social, mental, physical, and time wealth—elevates the discussion beyond mere asset accumulation. The revelation that strong friendships are worth an equivalent of $100,000 in annual income provides compelling context for life prioritization decisions.
The Great Enhancer Concept
Maggiulli's metaphor of money as salt—enhancing existing flavors rather than creating new ones—offers profound insight into wealth's role in human flourishing. This perspective helps readers understand why additional money becomes less impactful at higher wealth levels and why building other forms of wealth becomes increasingly important.
Final Assessment
The Wealth Ladder succeeds as both a practical guide and a philosophical framework for understanding wealth in modern society. Maggiulli's background as a data scientist at Ritholtz Wealth Management shows in the book's analytical rigor, while his blogging experience ensures accessibility for general readers.
The book's greatest contribution may be its demolition of universal financial advice in favor of contextual strategies. By acknowledging that different wealth levels require different approaches, Maggiulli provides a more honest and ultimately more helpful framework for financial decision-making.
While the book has limitations—particularly around inherited wealth and cultural context—it represents a significant evolution in financial literature. For readers seeking a evidence-based, adaptive approach to wealth building, The Wealth Ladder offers genuine value that extends well beyond its practical strategies into fundamental questions about money's role in human flourishing.
The book's central premise is deceptively simple yet profound: what gets you to one level of wealth won't necessarily get you to the next. Maggiulli structures wealth into six distinct levels, from Level 1 (less than $10,000) to Level 6 ($100 million and above), each requiring fundamentally different strategies for advancement and maintenance.
The Architecture of Wealth
Understanding the Six Levels
Maggiulli's framework begins with a stark reality check. The median age of millionaires isn't thirty-something tech entrepreneurs featured in magazines—it's sixty-two years old. This data-driven foundation immediately sets the book apart from get-rich-quick narratives that dominate financial media.
Each wealth level comes with its own spending freedom categories:
Level 1: Paycheck-to-paycheck survival
Level 2: Grocery freedom
Level 3: Restaurant freedom
Level 4: Travel freedom
Level 5: House freedom
Level 6: Impact freedom
This categorization provides immediate practical value. Rather than arbitrary spending rules, Maggiulli introduces the "0.01% Rule"—you can spend approximately 0.01% of your net worth on discretionary purchases without impacting your financial trajectory. For someone with $100,000, that's roughly $10 per decision, which aligns perfectly with restaurant freedom.
Strategic Evolution Across Levels
The book's strength lies in its recognition that strategies must evolve. In Level 1, the focus is survival and building basic skills without taking on destructive debt. Level 2 emphasizes education and career development—"Learn today, earn forever." Level 3 introduces systematic investing with the mantra "Just Keep Buying," while Level 4 requires a fundamental shift toward business ownership since traditional employment hits ceiling effects.
Maggiulli's personal journey from working-class beginnings to Level 4 by age thirty-four provides authentic context. His candid discussion of early career struggles, including being rejected from internships and starting his blog to crickets, resonates with readers facing similar challenges. The three-minute wait for a professor that changed his career trajectory illustrates how seemingly minor moments can create massive outcomes.
The Data-Driven Foundation
Research and Evidence
One of the book's most compelling aspects is its empirical foundation. Maggiulli draws extensively from the Panel Study of Income Dynamics, following the same households over decades to understand wealth mobility patterns. The findings are simultaneously encouraging and sobering: while most people stay within their wealth level over a ten-year period, there's a slight bias toward upward mobility over twenty years.
The financial mobility tables provide realistic expectations for wealth building timelines. Approximately 32% of households move up one wealth level within twenty years, while only 5% manage to climb two levels. These statistics help readers set achievable goals rather than chase unrealistic benchmarks promoted by financial influencers.
The Income-Wealth Connection
Maggiulli demolishes the myth that high wealth and low income commonly coexist. The data consistently shows that households in higher wealth levels also have higher incomes, with the median household income for Level 4 being $196,726 compared to $47,560 for Level 2. This reinforces the book's emphasis on earning strategies as the foundation of wealth building.
Critical Analysis and Limitations
Strengths in Framework and Execution
The book excels in several key areas. The wealth ladder metaphor is intuitive and memorable, making complex financial concepts accessible to general readers. Maggiulli's writing style, honed through years of blogging, strikes an effective balance between analytical rigor and conversational tone. His use of historical anecdotes—from Cleopatra's pearl-drinking to Alfred Nobel's legacy concerns—adds narrative richness without sacrificing substance.
The treatment of leverage as content, code, capital, and labor provides a modern understanding of wealth creation that acknowledges how technology has transformed earning potential. The discussion of how content creation can scale from Level 2 to Level 4 strategies reflects contemporary realities that traditional finance books often miss.
Notable Weaknesses and Oversights
However, the framework has limitations that become apparent upon closer examination. The neat categorization of wealth levels, while useful, can feel artificially rigid. Real financial lives rarely fit such clean boundaries, and the book occasionally underestimates the messiness of actual wealth building journeys.
The geographic and demographic limitations are significant. The framework is heavily weighted toward American experiences and assumes access to stable institutions, educational opportunities, and social safety nets. Readers from different economic contexts may find limited applicability.
Most critically, the book's treatment of inheritance and family wealth feels underdeveloped. While Maggiulli acknowledges his advantages—Stanford education, family support during financial struggles—the framework doesn't adequately address how inherited wealth or family assistance affects ladder progression. This oversight is particularly glaring given the book's emphasis on data and comprehensive analysis.
Beyond the Numbers: Life Philosophy
The Hidden Wisdom
Perhaps the book's most valuable insights emerge in its final section, where Maggiulli grapples with wealth's limitations. His honest reflection that "the most important lesson I've gleaned from the Wealth Ladder is how little your life is impacted by money once you have enough of it" provides crucial perspective often missing from financial literature.
The exploration of different wealth types—social, mental, physical, and time wealth—elevates the discussion beyond mere asset accumulation. The revelation that strong friendships are worth an equivalent of $100,000 in annual income provides compelling context for life prioritization decisions.
The Great Enhancer Concept
Maggiulli's metaphor of money as salt—enhancing existing flavors rather than creating new ones—offers profound insight into wealth's role in human flourishing. This perspective helps readers understand why additional money becomes less impactful at higher wealth levels and why building other forms of wealth becomes increasingly important.
Final Assessment
The Wealth Ladder succeeds as both a practical guide and a philosophical framework for understanding wealth in modern society. Maggiulli's background as a data scientist at Ritholtz Wealth Management shows in the book's analytical rigor, while his blogging experience ensures accessibility for general readers.
The book's greatest contribution may be its demolition of universal financial advice in favor of contextual strategies. By acknowledging that different wealth levels require different approaches, Maggiulli provides a more honest and ultimately more helpful framework for financial decision-making.
While the book has limitations—particularly around inherited wealth and cultural context—it represents a significant evolution in financial literature. For readers seeking a evidence-based, adaptive approach to wealth building, The Wealth Ladder offers genuine value that extends well beyond its practical strategies into fundamental questions about money's role in human flourishing.
October 5, 2025
Nick Maggiulli (b. ~1989) is an American financial blogger (Of Dollars and Data and works in the finance industry. His 2025 book The Wealth Ladder is a follow-up to his first book, 2022's Just Keep Buying: Proven Ways to Save Money and Build Your Wealth, and focuses on delineating and defining levels of wealth, with strategies to climb the levels if one so chooses. The levels he describes are based on the following net worths (all assets minus debts):
Level 1 - <$10K, 18% of US households
Level 2 - $10K-$100K, 21% of US households; aka, the level where grocery prices matter less
Level 3 - $100K-$1M, 43% of US households; aka, the level where restaurant prices matter less
Level 4 - $1M-$10M, 16.3% of US households; aka, the level where vacation prices matter less
Level 5 - $10M-$100M, 1.7% of US households; aka, the level where home prices matter less
Level 6 - $1000M+, 0.008% of (approximately 10,000) US households; aka, the level at which your level of out-of-touchness on the prices of everyday things may draw laughs (and scorn) from a talk show audience
Magguilli presents data about the general income levels, asset allocations and spending strategies of the different levels, though obviously these are broad strokes. He describes level 4 as the hardest to break out of unless one has interest in becoming a business owner/equity holder or lucratively famous -- as someone in this level now, also in my 30s, who doesn't aspire to either of those outcomes, I am still cautiously optimistic of my chances with the power of compound interest, a consistent investment strategy over time, and general frugality.
Many of Magguilli's outlooks are derived from his own experience climbing the wealth ladder from his level 2 upbringing, his level 3 20s, and how his level 4 30s, as well as his work in the finance sector and thousands of hours of focused research on this topic. I think this book is worth reading to glean these insights, and I'm excited to see how Magguilli progresses in his thinking and financial life as time continues.
Further reading: personal finance books I'd recommend:
The White Coat Investor: A Doctor's Guide to Personal Finance and Investing by Jim Dahle, MD
The Bogleheads' Guide to Investing by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf
The Psychology of Money by Morgan Housel
The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley and William Danko
(Also see my review of Codie Sanchez' Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses for more book recommendations on various wealth attainment strategies)
My statistics:
Book 306 for 2025
Book 2232 cumulatively
Level 1 - <$10K, 18% of US households
Level 2 - $10K-$100K, 21% of US households; aka, the level where grocery prices matter less
Level 3 - $100K-$1M, 43% of US households; aka, the level where restaurant prices matter less
Level 4 - $1M-$10M, 16.3% of US households; aka, the level where vacation prices matter less
Level 5 - $10M-$100M, 1.7% of US households; aka, the level where home prices matter less
Level 6 - $1000M+, 0.008% of (approximately 10,000) US households; aka, the level at which your level of out-of-touchness on the prices of everyday things may draw laughs (and scorn) from a talk show audience
Magguilli presents data about the general income levels, asset allocations and spending strategies of the different levels, though obviously these are broad strokes. He describes level 4 as the hardest to break out of unless one has interest in becoming a business owner/equity holder or lucratively famous -- as someone in this level now, also in my 30s, who doesn't aspire to either of those outcomes, I am still cautiously optimistic of my chances with the power of compound interest, a consistent investment strategy over time, and general frugality.
Many of Magguilli's outlooks are derived from his own experience climbing the wealth ladder from his level 2 upbringing, his level 3 20s, and how his level 4 30s, as well as his work in the finance sector and thousands of hours of focused research on this topic. I think this book is worth reading to glean these insights, and I'm excited to see how Magguilli progresses in his thinking and financial life as time continues.
Further reading: personal finance books I'd recommend:
The White Coat Investor: A Doctor's Guide to Personal Finance and Investing by Jim Dahle, MD
The Bogleheads' Guide to Investing by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf
The Psychology of Money by Morgan Housel
The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas Stanley and William Danko
(Also see my review of Codie Sanchez' Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses for more book recommendations on various wealth attainment strategies)
My statistics:
Book 306 for 2025
Book 2232 cumulatively
October 27, 2025
This book came recommended by a financial influencer I like and at first it seemed really promising. This is perhaps the first book I’ve ever read that not only acknowledges but designed the book around the idea that there can’t be one-size fits all financial advice, since the advice will vary greatly based on where you are in terms of income and savings, etc. I liked that.
But soon after that, the book felt like it was written with the assumption that everyone actually wants to become a billionaire. So most of the book fell flat, since I just don’t really aspire to having my own private jet or selling a business for billions.
But soon after that, the book felt like it was written with the assumption that everyone actually wants to become a billionaire. So most of the book fell flat, since I just don’t really aspire to having my own private jet or selling a business for billions.
July 22, 2025
The Wealth Ladder is a refreshingly clear and practical guide to building financial security step by step. Nick introduces a smart framework of six wealth stages, showing how financial priorities should shift as your net worth grows, a major improvement over one-size-fits-all advice. What makes this book stand out is its blend of data, psychology, and empathy: it’s not just about getting rich, but about making decisions that align with your current life and future goals. His “0.01% rule” and thoughtful approach to spending, saving, and investing have truly reframed how I think about money.
This is one of the most grounded and actionable finance books I’ve read! Which is ideal for anyone who wants a calm, intelligent plan for long-term wealth.
This is one of the most grounded and actionable finance books I’ve read! Which is ideal for anyone who wants a calm, intelligent plan for long-term wealth.
September 26, 2025
I love Maggiulli's work, and read his blog weekly. He had some neat points in here, and I really appreciated his ideas around the wealth ladder.
The two primary takeaways I had are:
1. The ladder is exponentially relative. Each rung one goes up, the jump is significantly more (not just linear). Someone who's on rung 1, and receives $10K, their life is changed. Someone on rung 5, that same $10k is not noticed. I think this idea connects well to Morgan Housel's Psychology of Money and the dangers of comparison.
2. We should be realistic and content with whatever rung on the ladder we're on. The highest rungs of the ladder require exceptional sacrifice that, to many, doesn't justify the effort. So, be happy with where you're at, and don't think about the lifestyle someone on that rung lives; they are having to pay for it in ways most of us aren't willing to, namely likely time sacrifice that is truly priceless.
I knocked a star, because these insights were largely within the beginning of the book and the majority of the book was more basic finance concepts, ect.
The two primary takeaways I had are:
1. The ladder is exponentially relative. Each rung one goes up, the jump is significantly more (not just linear). Someone who's on rung 1, and receives $10K, their life is changed. Someone on rung 5, that same $10k is not noticed. I think this idea connects well to Morgan Housel's Psychology of Money and the dangers of comparison.
2. We should be realistic and content with whatever rung on the ladder we're on. The highest rungs of the ladder require exceptional sacrifice that, to many, doesn't justify the effort. So, be happy with where you're at, and don't think about the lifestyle someone on that rung lives; they are having to pay for it in ways most of us aren't willing to, namely likely time sacrifice that is truly priceless.
I knocked a star, because these insights were largely within the beginning of the book and the majority of the book was more basic finance concepts, ect.
September 5, 2025
A down-to-earth and thought-provoking book on the different levels of wealth. Part of it is practical strategy on how to climb the ladder or keep from falling down it. But it’s more about how to think about wealth differently as you accumulate more of it, the pros and cons inherent to each level, and at which points more money actually leads to more happiness (and when it doesn’t).
Takeaways for me include how to know what amounts of money earned or spent are worth being concerned about, and understanding how income, investments, and businesses affect the wealth ladder.
This isn’t a natural area of interest for me, but I really enjoyed the book and appreciated Maggiuli’s level-headed approach and the wisdom he shared about the interplay of finances with other areas of wealth — health, social life, time, etc.
Takeaways for me include how to know what amounts of money earned or spent are worth being concerned about, and understanding how income, investments, and businesses affect the wealth ladder.
This isn’t a natural area of interest for me, but I really enjoyed the book and appreciated Maggiuli’s level-headed approach and the wisdom he shared about the interplay of finances with other areas of wealth — health, social life, time, etc.
September 30, 2025
People in Level 1 or 2 might find this book helpful this if they are in college or in their 20s and 30s because it gives them big picture benchmarks. But I imagine the majority of the audience are in Levels 3 and 4. And for them, the frameworks for spending and earning may not be as helpful because old habits that got them there don’t die easily. Personally, it was fun to compare myself to others. Not sure if this is going to have significant impact on my approach to earning, spending, saving, or investing…maybe a bit more guilt-free spending at restaurants?
November 14, 2025
20% interesting content (a framework for how you should approach your finances depending on your level of wealth)
80% fluff and quotes from other people
the book is only about 200 pages, so the actual meat could've just been a blog post or a 10-20min youtube video
definitely worth reading or skimming if you're younger (high school/college/early career) or if you haven't given much thought to managing your wealth long-term
80% fluff and quotes from other people
the book is only about 200 pages, so the actual meat could've just been a blog post or a 10-20min youtube video
definitely worth reading or skimming if you're younger (high school/college/early career) or if you haven't given much thought to managing your wealth long-term
Want to read
September 6, 2025Climbing the wealth ladder
https://bt.sg/Hkaw
1/ <$10k pay yourself 1st
2/ $10k-100k grocery freedom but avoid restaurants & vacations. Avoid falling back to lvl 1
3/ $100k-1m restaurant freedom. Need to invest
4/$1-10m travel freedom. Most difficult lvl to break out of. Lucky break in biz ownership can help. Don't overconsume on housing
5/ $10m-100m dream home freedom
6/ >$1b philanthropic freedom
https://bt.sg/Hkaw
1/ <$10k pay yourself 1st
2/ $10k-100k grocery freedom but avoid restaurants & vacations. Avoid falling back to lvl 1
3/ $100k-1m restaurant freedom. Need to invest
4/$1-10m travel freedom. Most difficult lvl to break out of. Lucky break in biz ownership can help. Don't overconsume on housing
5/ $10m-100m dream home freedom
6/ >$1b philanthropic freedom
September 15, 2025
As far as financial advice books go this was a very pleasant surprise; the author helpfully lays out the current levels of wealth and associated options and lifestyle choices; finally somebody who can translate the often abstract world of finance into plain, easy to understand and relatable terms; highly recommended reading.
October 20, 2025
Just Keep Buying 作者的新书。把净资产分为「财富阶梯」的6个等级之后，按照每级给出了积累财富的建议。
其实观点都很中肯，但我不喜欢的是，内容太注水了。明明一篇博客就能说清楚的事，非要写本两百多页的书…一旦开始给别人人生建议的时候，就觉得读不下去了。
其实观点都很中肯，但我不喜欢的是，内容太注水了。明明一篇博客就能说清楚的事，非要写本两百多页的书…一旦开始给别人人生建议的时候，就觉得读不下去了。
January 7, 2026
The Wealth Ladder: Proven Strategies for Every Step of Your Financial Life by Nick Maggiulli (2025)
xviii+234-page Kindle Ebook story pages ix-214
Genre: Personal Finance, Nonfiction, Economics, Self-Help, Personal Development
Featuring: Dedication, Introduction, Wealth Levels, Graphs and Charts, Understanding the Wealth Ladder, Chess, Spending up the Wealth Ladder, The 0.01% Rule, Earning up the Wealth Ladder, The 1% Rule, Income, Leverage You Can Use to Make More Money: Labor, Capital, Content, and Code; Investing up the Wealth Ladder, Assets - Cash, Vehicles, Primary Residence, Retirement, Real Rstate (outside of primary residence), Mutual Funds/Stocks, Business Interests; Chapter Summaries, Income Producing Assets, Making the Climb A Note on Part II, Level 1 (<$10k) Atypical Results Require Atypical Actions, Million Dollar Comeback, Average Level 2 ($10k–$100k) Learn Today, Earn Forever; László Polgár, Marketable Skills, Education Level, Mr. Beast, Level 3 ($100k–$1M) Just Keep Buying, Investing, Side Hustles, Level 4 ($1M–$10M) What Got You Here Won’t Get You There, Starting or Joining a Business, Level 5 ($10M–$100M) Only the Paranoid Survive, Wealth Management, Selling Your Business, Diversifying Your Portfolio, Being Mindful of Overspending, Liabilities, Huguette Clark, Loss of Trust, Level 6 ($100M+) Legacy = Action * Wealth; Alfred Nobel; Wealth Destroyers - Divorce, Lawsuits, Changed Motivations and Perceptions, Relative Deprivatio; How Long Does It Take to Climb the Wealth Ladder?; Wealth Level by Age, Wealth Level Over the Decades, Part III Finding Your Summit - A Note on Part III, Does Money Buy Happiness, The Never Ending Then, The Great Enhancer, The 5 Types of Wealth, Purpose, My Journey up the Wealth Ladder, Epilogue Finding Simplicity in Complexity, Acknowledgments, Notes
Rating as a movie: PG-13
Songs for the soundtrack: "Niggas In Paris" by Jay-Z and Kanye West, "Yesterday's Price Is Not Today's Price" by Fat Joe [sampled in] "Diet Coke" by Pusha T., "Diamonds" by Rihanna, "Wisdom" by Bob Marley, "Exodus 23:1"by Pusha T.
Books and Authors mentioned: Just Keep Buying: Proven Ways to Save Money and Build Your Wealth by Nick Maggiulli, Where Are the Customers' Yachts? Or, A Good Hard Look at Wall Street by Fred Schwed, Poor People by William T. Vollmann, A Framework for Understanding Poverty by Ruby K. Payne, Dignity: Seeking Respect in Back Row America by Chris Arnade, “How to Do Great Work” by Paul Graham, The Algebra of Wealth: A Simple Formula for Financial Security by Scott Galloway; Leonardo the Musical: A Portrait of Love by John Kane, What Got You Here Won't Get You There by Marshall Goldsmith, How to Get Rich: One of the World's Greatest Entrepreneurs Shares His Secrets by Felix Dennis, The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber; Jordan O’Connor, The Market Approach to Valuing Businesses by Shannon P. Pratt, Wealth, Actually: Intelligent Decision-Making for the 1% by Frazer Rice; Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company by Andrew S. Grove, Rich Habits: Book One by Thomas Corley, “A Few Laws of Getting Rich” by Morgan Housel, How to Stay in Love: Practical Wisdom from an Unexpected Source by James J. Sexton, “We Are Made to Live Like Firemen” by Misha Saul, Salt, Fat, Acid, Heat: Mastering the Elements of Good Cooking by Samin Nosrat, The 5 Types of Wealth: A Transformative Guide to Design Your Dream Life by Sahil Bloom; The Social Brain: The Psychology of Successful Groups by Robin Dunbar, Samantha Rockey, and Tracey Camilleri; How to Retire Happy, Wild, and Free by Ernie J. Zelinski; Why Zebras Don't Get Ulcers by Robert Sapolsky
My rating: 🌟🌟🌟🌟🌟💵🎚
My thoughts: 🔖Page 41 of 234 Chapter 3 Investing up the Wealth Ladder - Loving this information.
🔖59 Chapter 4 Level 1 (<$10k) — Atypical Results Require Atypical Actions - I am very surprised that my most exciting book out of 4 is nonfiction. I would totally be finishing this book if it weren't cramming my brain full of information I need to process and save.
🔖161 Part III Finding Your Summit - This is the final portion of the book. It's definitely a 5-star read. I'm only stopping because it's 1 o'clock and I'm past tired.
This is probably one of the best financial books I think I've ever read. I wanted to save it all so there are a lot of memorable quotes. I did not even note them here because there were so many. I also did not annotate every single book you have to check in the notes for that but let me tell you this book is fantastic. Somebody on Facebook recommended it so I was surprised it was so new since they said it was a must-read financial book as if it were a classic financial book that's been out for decades but it is pretty new only a few months old and I would be surprised if Dave Ramsey does not put this on the required reading list for his employees.
Recommend to others: Absolutely! I'm going to get my friends and family to read this book. I will probably be singing its praises the rest of my life.
Memorable Quotes:
The person with $100,000 can afford a lifestyle that is quite different from the person with only $1,000. However, the person with $500,000 lives nearly identically to the person with $400,000. Though these two people are separated by $100,000, they likely shop at similar stores, drive similar cars, and live in similar homes. In this sense, our enjoyment of wealth isn’t something that goes up with every additional dollar (or $1,000) we get, but something that increases in steps.
Level 1 (<$10,000)
Level 2 ($10,000–$100,000)
Level 3 ($100,000–$1 million)
Level 4 ($1 million–$10 million)
Level 5 ($10 million–$100 million)
Level 6 ($100 million+)
If we map the different economic classes in the U.S. onto the Wealth Ladder, we can see this more clearly:
Level 1. Lower class (<$10k)
Level 2. Working class ($10k–$100k)
Level 3. Middle class ($100k–$1M)
Level 4. Upper middle class ($1M–$10M) Level 5. Upper class ($10M–$100M)
Level 6. The superrich ($100M+)
From this perspective, you can begin to understand why some people with lots of money don’t feel rich—it’s because they’re looking at higher economic classes or Wealth Levels. People in Level 4 look at people in Levels 5–6 and say, “I’m not rich, they are rich.” Though people in Level 4 are millionaires, they can’t afford to live like the stereotypical rich person depicted in the media and popular culture. Those people, who are in Levels 5–6, can actually afford to fly in private jets and own supercars.
This categorization of wealth into levels also explains why different financial experts give seemingly contradictory advice. One may argue that budgeting is the key to financial success, while another claims that starting a business is more important. Who is right? The Wealth Ladder teaches us that both of them are, they are just talking to people at different levels on the Wealth Ladder. While budgeting can be useful for someone in Level 1 of the Wealth Ladder, it likely won’t make a difference for someone in Level 6. This would classify budgeting as Level 1 strategy. Similarly, starting and scaling a business could help someone in Level 6 build more wealth, but probably isn’t the right strategy for someone in Level 1. This would classify running a business as a higher-level strategy. Just like a fitness coach would provide different diet and exercise advice to an obese person than to a well-trained athlete, the Wealth Ladder will provide different financial advice based on where you are on your financial journey.
Level 1. Paycheck-to-paycheck (<$10k): You are conscious of every dollar you spend. This includes people with crippling debt.
Level 2. Grocery freedom ($10k–$100k): You can buy what you want at the grocery store without worrying about your finances.
Level 3. Restaurant freedom ($100k–$1M): You can eat what you want at restaurants.
Level 4. Travel freedom ($1M–$10M): You travel when and where you want.
Level 5. House freedom ($10M–$100M): You can afford your dream home with little impact on your overall finances.
Level 6. Impact freedom ($100M+): You can use money to have a profound impact on the lives of others (e.g., buy businesses, engage in large-scale philanthropy, etc.).
This is why the Wealth Ladder suggests that you spend money according to your wealth level. If someone is in Level 2 (“Grocery freedom”), they shouldn’t be splurging at fancy restaurants, which is reserved for Level 3. If they are in Level 3 (“Restaurant freedom”), they shouldn’t be upgrading to business or first class, and so forth. Of course, they may disagree with me and insist that they need the finer things in life. But this is just an excuse. In truth, the most expensive thing some people own is their ego.
Ultimately, the Wealth Ladder can and should be adapted to your financial situation. It’s more of an approximate art than an exact science. I say this because the specific amounts I’ve listed for each level of the Wealth Ladder are not set in stone. Prices will vary over time, across currencies, and in different countries. The specific numbers are not what’s important. It’s the underlying framework that matters. For example, imagine what would happen to the Wealth Ladder if, overnight, the price of everything in the economy doubled. What if milk went from $5 to $10 a gallon? What if a car that once cost $20,000 now costs $40,000? In this scenario, Level 1 of the Wealth Ladder would be <$20,000, Level 2 would be $20,000–$200,000, and so forth. While the absolute values of the Wealth Ladder have doubled, on a relative basis, nothing has changed. The same thing will be true if the prices in one spending category shift dramatically. For example, if a new technology gets invented that significantly reduces the cost of traveling around the world, then Level 4 would probably no longer correspond with “Travel freedom.” It would correspond with something else entirely. Instead of getting bogged down with the specifics, focus on the big picture. What’s important is the idea of the Wealth Ladder and how your spending can increase slowly as you move up it.
The 1% Rule
Level 1 (<$10k). Hourly jobs: $10–$100
Level 2 ($10k–$100k). High-skilled work: $100–$1,000
Level 3 ($100k–$1M). Career advancements; side hustles; small investments: $1,000–$10k
Level 4 ($1M–$10M). Career pivots; start a business; medium investments: $10k–$100k
Level 5 ($10M–$100M). Grow a business; large investments: $100k–$1M
Level 6 ($100M+). Build an enterprise; significant investments: $1M+
Your income today is the foundation of your wealth tomorrow. It is the bedrock on top of which everything you desire financially will be built.
Outside of highly paid entertainers, lottery winners, and heirs to large inheritances, most people in Level 5 and Level 6 got wealthy through business ownership. Whether they start a company or acquire a significant part of its equity over time, this is their typical strategy.
I’ve written Part II with the aim of helping you on your wealth-building journey based on where you are today.
Level 1 Summary Follow-Up:
Examine how you spend your time and money. Reduce debt and build an emergency fund.
Opportunities: Focus on building marketable skills without spending money. Rely on family and friends where possible.
Risks: Credit card debt, student loans (without the expectation of higher income), and other big financial liabilities.
Mental framework: Atypical results require atypical actions.
I’ve read more than one hundred books on investing since 2012 and have been writing on the topic for nearly a decade, but still haven’t found a one-size-fits-all solution. While this might sound unsatisfying, it’s the truth. I know people who have gotten wealthy through real estate, stocks, their own businesses, and much more. What matters is finding the investments that are right for you. For example, some like owning and managing physical assets such as real estate. Others prefer the low maintenance of stock index funds and ETFs. Some like running their own businesses. Others choose to invest in private businesses and let others manage them. And so forth. But despite their many differences, all these investors have one thing in common—they own income-producing assets.
Where does this overspending tend to occur? Though it can vary, for those in Level 3, the primary culprit tends to be housing. As we saw in chapter 3, homeowners in Level 3 tend to have nearly 65 percent of their assets, on average, in their home. Although you can look at your home as an investment, in many ways it is a consumption good. It’s something that generally costs you money, not something that makes you money. More importantly, Level 3 is where homeownership is almost universal, at least in the United States. While only 6 percent of households in Level 1 and 42 percent of households in Level 2 own their own home, 90 percent of households in Level 3 do. So not only are you very likely to buy a home in Level 3, but you are likely going to spend a good portion of your assets doing it as well. Being mindful of how much you spend on your primary residence will have a huge financial impact down the road. As I will explore in more depth later, 61.8 percent of people in Level 3 will still be in Level 3 after twenty years. While going from $100,000 to $1 million isn’t easy, overspending on big-ticket items like your car or home surely won’t help.
On the flip side, wealth can also be demotivating for children who know that their parents will support them financially no matter what. After all, what’s the point of pushing yourself if you know that Mommy and Daddy will always be there to write you a check? While wealth can provide great support to children in terms of education and life experiences, it can also remove any incentive to work hard. As the saying goes, “The silver spoon often chokes ambition.”
Outside your closest relatives, you may also run into awkward money situations with your extended family. If they know that you are doing well financially, they may expect you to pay for things or help them out if they ask. While I am generally supportive of these unspoken customs, there is a fine line between support and abuse. Paying for dinner on occasion is one thing, but becoming the personal piggy bank of the family is another. If you want to preserve the relationship, set some ground rules about when you are willing and unwilling to provide financial support. This may be difficult to discuss, but better to have an open dialogue than private resentment on either end.
xviii+234-page Kindle Ebook story pages ix-214
Genre: Personal Finance, Nonfiction, Economics, Self-Help, Personal Development
Featuring: Dedication, Introduction, Wealth Levels, Graphs and Charts, Understanding the Wealth Ladder, Chess, Spending up the Wealth Ladder, The 0.01% Rule, Earning up the Wealth Ladder, The 1% Rule, Income, Leverage You Can Use to Make More Money: Labor, Capital, Content, and Code; Investing up the Wealth Ladder, Assets - Cash, Vehicles, Primary Residence, Retirement, Real Rstate (outside of primary residence), Mutual Funds/Stocks, Business Interests; Chapter Summaries, Income Producing Assets, Making the Climb A Note on Part II, Level 1 (<$10k) Atypical Results Require Atypical Actions, Million Dollar Comeback, Average Level 2 ($10k–$100k) Learn Today, Earn Forever; László Polgár, Marketable Skills, Education Level, Mr. Beast, Level 3 ($100k–$1M) Just Keep Buying, Investing, Side Hustles, Level 4 ($1M–$10M) What Got You Here Won’t Get You There, Starting or Joining a Business, Level 5 ($10M–$100M) Only the Paranoid Survive, Wealth Management, Selling Your Business, Diversifying Your Portfolio, Being Mindful of Overspending, Liabilities, Huguette Clark, Loss of Trust, Level 6 ($100M+) Legacy = Action * Wealth; Alfred Nobel; Wealth Destroyers - Divorce, Lawsuits, Changed Motivations and Perceptions, Relative Deprivatio; How Long Does It Take to Climb the Wealth Ladder?; Wealth Level by Age, Wealth Level Over the Decades, Part III Finding Your Summit - A Note on Part III, Does Money Buy Happiness, The Never Ending Then, The Great Enhancer, The 5 Types of Wealth, Purpose, My Journey up the Wealth Ladder, Epilogue Finding Simplicity in Complexity, Acknowledgments, Notes
Rating as a movie: PG-13
Songs for the soundtrack: "Niggas In Paris" by Jay-Z and Kanye West, "Yesterday's Price Is Not Today's Price" by Fat Joe [sampled in] "Diet Coke" by Pusha T., "Diamonds" by Rihanna, "Wisdom" by Bob Marley, "Exodus 23:1"by Pusha T.
Books and Authors mentioned: Just Keep Buying: Proven Ways to Save Money and Build Your Wealth by Nick Maggiulli, Where Are the Customers' Yachts? Or, A Good Hard Look at Wall Street by Fred Schwed, Poor People by William T. Vollmann, A Framework for Understanding Poverty by Ruby K. Payne, Dignity: Seeking Respect in Back Row America by Chris Arnade, “How to Do Great Work” by Paul Graham, The Algebra of Wealth: A Simple Formula for Financial Security by Scott Galloway; Leonardo the Musical: A Portrait of Love by John Kane, What Got You Here Won't Get You There by Marshall Goldsmith, How to Get Rich: One of the World's Greatest Entrepreneurs Shares His Secrets by Felix Dennis, The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber; Jordan O’Connor, The Market Approach to Valuing Businesses by Shannon P. Pratt, Wealth, Actually: Intelligent Decision-Making for the 1% by Frazer Rice; Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company by Andrew S. Grove, Rich Habits: Book One by Thomas Corley, “A Few Laws of Getting Rich” by Morgan Housel, How to Stay in Love: Practical Wisdom from an Unexpected Source by James J. Sexton, “We Are Made to Live Like Firemen” by Misha Saul, Salt, Fat, Acid, Heat: Mastering the Elements of Good Cooking by Samin Nosrat, The 5 Types of Wealth: A Transformative Guide to Design Your Dream Life by Sahil Bloom; The Social Brain: The Psychology of Successful Groups by Robin Dunbar, Samantha Rockey, and Tracey Camilleri; How to Retire Happy, Wild, and Free by Ernie J. Zelinski; Why Zebras Don't Get Ulcers by Robert Sapolsky
My rating: 🌟🌟🌟🌟🌟💵🎚
My thoughts: 🔖Page 41 of 234 Chapter 3 Investing up the Wealth Ladder - Loving this information.
🔖59 Chapter 4 Level 1 (<$10k) — Atypical Results Require Atypical Actions - I am very surprised that my most exciting book out of 4 is nonfiction. I would totally be finishing this book if it weren't cramming my brain full of information I need to process and save.
🔖161 Part III Finding Your Summit - This is the final portion of the book. It's definitely a 5-star read. I'm only stopping because it's 1 o'clock and I'm past tired.
This is probably one of the best financial books I think I've ever read. I wanted to save it all so there are a lot of memorable quotes. I did not even note them here because there were so many. I also did not annotate every single book you have to check in the notes for that but let me tell you this book is fantastic. Somebody on Facebook recommended it so I was surprised it was so new since they said it was a must-read financial book as if it were a classic financial book that's been out for decades but it is pretty new only a few months old and I would be surprised if Dave Ramsey does not put this on the required reading list for his employees.
Recommend to others: Absolutely! I'm going to get my friends and family to read this book. I will probably be singing its praises the rest of my life.
Memorable Quotes:
The person with $100,000 can afford a lifestyle that is quite different from the person with only $1,000. However, the person with $500,000 lives nearly identically to the person with $400,000. Though these two people are separated by $100,000, they likely shop at similar stores, drive similar cars, and live in similar homes. In this sense, our enjoyment of wealth isn’t something that goes up with every additional dollar (or $1,000) we get, but something that increases in steps.
Level 1 (<$10,000)
Level 2 ($10,000–$100,000)
Level 3 ($100,000–$1 million)
Level 4 ($1 million–$10 million)
Level 5 ($10 million–$100 million)
Level 6 ($100 million+)
If we map the different economic classes in the U.S. onto the Wealth Ladder, we can see this more clearly:
Level 1. Lower class (<$10k)
Level 2. Working class ($10k–$100k)
Level 3. Middle class ($100k–$1M)
Level 4. Upper middle class ($1M–$10M) Level 5. Upper class ($10M–$100M)
Level 6. The superrich ($100M+)
From this perspective, you can begin to understand why some people with lots of money don’t feel rich—it’s because they’re looking at higher economic classes or Wealth Levels. People in Level 4 look at people in Levels 5–6 and say, “I’m not rich, they are rich.” Though people in Level 4 are millionaires, they can’t afford to live like the stereotypical rich person depicted in the media and popular culture. Those people, who are in Levels 5–6, can actually afford to fly in private jets and own supercars.
This categorization of wealth into levels also explains why different financial experts give seemingly contradictory advice. One may argue that budgeting is the key to financial success, while another claims that starting a business is more important. Who is right? The Wealth Ladder teaches us that both of them are, they are just talking to people at different levels on the Wealth Ladder. While budgeting can be useful for someone in Level 1 of the Wealth Ladder, it likely won’t make a difference for someone in Level 6. This would classify budgeting as Level 1 strategy. Similarly, starting and scaling a business could help someone in Level 6 build more wealth, but probably isn’t the right strategy for someone in Level 1. This would classify running a business as a higher-level strategy. Just like a fitness coach would provide different diet and exercise advice to an obese person than to a well-trained athlete, the Wealth Ladder will provide different financial advice based on where you are on your financial journey.
Level 1. Paycheck-to-paycheck (<$10k): You are conscious of every dollar you spend. This includes people with crippling debt.
Level 2. Grocery freedom ($10k–$100k): You can buy what you want at the grocery store without worrying about your finances.
Level 3. Restaurant freedom ($100k–$1M): You can eat what you want at restaurants.
Level 4. Travel freedom ($1M–$10M): You travel when and where you want.
Level 5. House freedom ($10M–$100M): You can afford your dream home with little impact on your overall finances.
Level 6. Impact freedom ($100M+): You can use money to have a profound impact on the lives of others (e.g., buy businesses, engage in large-scale philanthropy, etc.).
This is why the Wealth Ladder suggests that you spend money according to your wealth level. If someone is in Level 2 (“Grocery freedom”), they shouldn’t be splurging at fancy restaurants, which is reserved for Level 3. If they are in Level 3 (“Restaurant freedom”), they shouldn’t be upgrading to business or first class, and so forth. Of course, they may disagree with me and insist that they need the finer things in life. But this is just an excuse. In truth, the most expensive thing some people own is their ego.
Ultimately, the Wealth Ladder can and should be adapted to your financial situation. It’s more of an approximate art than an exact science. I say this because the specific amounts I’ve listed for each level of the Wealth Ladder are not set in stone. Prices will vary over time, across currencies, and in different countries. The specific numbers are not what’s important. It’s the underlying framework that matters. For example, imagine what would happen to the Wealth Ladder if, overnight, the price of everything in the economy doubled. What if milk went from $5 to $10 a gallon? What if a car that once cost $20,000 now costs $40,000? In this scenario, Level 1 of the Wealth Ladder would be <$20,000, Level 2 would be $20,000–$200,000, and so forth. While the absolute values of the Wealth Ladder have doubled, on a relative basis, nothing has changed. The same thing will be true if the prices in one spending category shift dramatically. For example, if a new technology gets invented that significantly reduces the cost of traveling around the world, then Level 4 would probably no longer correspond with “Travel freedom.” It would correspond with something else entirely. Instead of getting bogged down with the specifics, focus on the big picture. What’s important is the idea of the Wealth Ladder and how your spending can increase slowly as you move up it.
The 1% Rule
Level 1 (<$10k). Hourly jobs: $10–$100
Level 2 ($10k–$100k). High-skilled work: $100–$1,000
Level 3 ($100k–$1M). Career advancements; side hustles; small investments: $1,000–$10k
Level 4 ($1M–$10M). Career pivots; start a business; medium investments: $10k–$100k
Level 5 ($10M–$100M). Grow a business; large investments: $100k–$1M
Level 6 ($100M+). Build an enterprise; significant investments: $1M+
Your income today is the foundation of your wealth tomorrow. It is the bedrock on top of which everything you desire financially will be built.
Outside of highly paid entertainers, lottery winners, and heirs to large inheritances, most people in Level 5 and Level 6 got wealthy through business ownership. Whether they start a company or acquire a significant part of its equity over time, this is their typical strategy.
I’ve written Part II with the aim of helping you on your wealth-building journey based on where you are today.
Level 1 Summary Follow-Up:
Examine how you spend your time and money. Reduce debt and build an emergency fund.
Opportunities: Focus on building marketable skills without spending money. Rely on family and friends where possible.
Risks: Credit card debt, student loans (without the expectation of higher income), and other big financial liabilities.
Mental framework: Atypical results require atypical actions.
I’ve read more than one hundred books on investing since 2012 and have been writing on the topic for nearly a decade, but still haven’t found a one-size-fits-all solution. While this might sound unsatisfying, it’s the truth. I know people who have gotten wealthy through real estate, stocks, their own businesses, and much more. What matters is finding the investments that are right for you. For example, some like owning and managing physical assets such as real estate. Others prefer the low maintenance of stock index funds and ETFs. Some like running their own businesses. Others choose to invest in private businesses and let others manage them. And so forth. But despite their many differences, all these investors have one thing in common—they own income-producing assets.
Where does this overspending tend to occur? Though it can vary, for those in Level 3, the primary culprit tends to be housing. As we saw in chapter 3, homeowners in Level 3 tend to have nearly 65 percent of their assets, on average, in their home. Although you can look at your home as an investment, in many ways it is a consumption good. It’s something that generally costs you money, not something that makes you money. More importantly, Level 3 is where homeownership is almost universal, at least in the United States. While only 6 percent of households in Level 1 and 42 percent of households in Level 2 own their own home, 90 percent of households in Level 3 do. So not only are you very likely to buy a home in Level 3, but you are likely going to spend a good portion of your assets doing it as well. Being mindful of how much you spend on your primary residence will have a huge financial impact down the road. As I will explore in more depth later, 61.8 percent of people in Level 3 will still be in Level 3 after twenty years. While going from $100,000 to $1 million isn’t easy, overspending on big-ticket items like your car or home surely won’t help.
On the flip side, wealth can also be demotivating for children who know that their parents will support them financially no matter what. After all, what’s the point of pushing yourself if you know that Mommy and Daddy will always be there to write you a check? While wealth can provide great support to children in terms of education and life experiences, it can also remove any incentive to work hard. As the saying goes, “The silver spoon often chokes ambition.”
Outside your closest relatives, you may also run into awkward money situations with your extended family. If they know that you are doing well financially, they may expect you to pay for things or help them out if they ask. While I am generally supportive of these unspoken customs, there is a fine line between support and abuse. Paying for dinner on occasion is one thing, but becoming the personal piggy bank of the family is another. If you want to preserve the relationship, set some ground rules about when you are willing and unwilling to provide financial support. This may be difficult to discuss, but better to have an open dialogue than private resentment on either end.
October 7, 2025
I wish I had read this when I was 20. I recommend it highly.
November 19, 2025
This was a really good framework for looking st different levels of wealth, equating them to six rungs on a ladder. Each rung is 10x the net worth of the previous.
The author describes the level of freedom provided at each level, how people get to (and fall out of) that level, and what gets you to the next one, including some estimates of how long it takes.
The author is good with data, good with presenting facts in a compelling narrative, and shares some of his own journey.
This was different from other finance books and helped me look at wealth from analternative perspective.
The author describes the level of freedom provided at each level, how people get to (and fall out of) that level, and what gets you to the next one, including some estimates of how long it takes.
The author is good with data, good with presenting facts in a compelling narrative, and shares some of his own journey.
This was different from other finance books and helped me look at wealth from analternative perspective.
December 24, 2025
none of the data was used well but i’m rounding up to two stars bc he seems nice and i like a ladder analogy
October 21, 2025
good book
Key take aways:
- 0.01% rule. Decisions that are less than this % of your net worth is a trivial amount and shouldn't result in u wasting much brain power
5 Components of wealth:
1. Physical wealth
2. Mental
3. Social
4. Finacial
5. Time
Key take aways:
- 0.01% rule. Decisions that are less than this % of your net worth is a trivial amount and shouldn't result in u wasting much brain power
5 Components of wealth:
1. Physical wealth
2. Mental
3. Social
4. Finacial
5. Time
August 6, 2025
Just the right tone foe a personal finance book!
What a good read! Well written, informative, and perhaps most importantly, the tone of the book is just right. Nick never preaches or talks down to you. He backs up everything with research and real-world examples. And he points out repeatedly that money has its limits to building a happy life. Nick also tells great stories. I highly recommend the book, especially for young adults. I’m 70 years old, so I’m probably not in the demographic that this book is aimed at. But I enjoyed it thoroughly, and in many instances, it confirmed what I already knew intuitively. FYI, my wife and I are living a happy life on wealth level four with no need to climb higher.
What a good read! Well written, informative, and perhaps most importantly, the tone of the book is just right. Nick never preaches or talks down to you. He backs up everything with research and real-world examples. And he points out repeatedly that money has its limits to building a happy life. Nick also tells great stories. I highly recommend the book, especially for young adults. I’m 70 years old, so I’m probably not in the demographic that this book is aimed at. But I enjoyed it thoroughly, and in many instances, it confirmed what I already knew intuitively. FYI, my wife and I are living a happy life on wealth level four with no need to climb higher.
August 7, 2025
A New York Times Best Seller for good reason, The Wealth Ladder is one of the most clear, practical, and genuinely useful books on personal finance I’ve ever read. Nick Maggiulli doesn’t just give advice,he gives perspective, backed by data, real-world examples, and a no-nonsense approach that cuts through the noise.
Whether you’re starting from scratch or trying to optimize what you’ve already built, this book meets you where you are and helps you move forward with clarity. Every chapter builds on the last, making the path to wealth feel less overwhelming and more achievable.
I’ll be recommending The Wealth Ladder to friends, family, and anyone serious about long-term financial freedom.
Whether you’re starting from scratch or trying to optimize what you’ve already built, this book meets you where you are and helps you move forward with clarity. Every chapter builds on the last, making the path to wealth feel less overwhelming and more achievable.
I’ll be recommending The Wealth Ladder to friends, family, and anyone serious about long-term financial freedom.
July 28, 2025
Nick's Wealth Ladder provides practical personal finance advice with a human understanding of how we actually spend, save, and live.
I would recommend this book to anyone but would argue that it should be required reading for those in Levels 3 ($100,000-$1,000,000) & Level 4 ($1,000,000-$10,000,000). If you've read Nick's Just Keep Buying, or have generally started to routinely invest, this book is your answer in terms of how to think about "What do I do now?", what you've already accomplished, and how you want to focus from here.
One of the key ideas for me was the 0.01% spending rule. This provides a clear framework for spending guilt free. This will likely be an eye opener for anyone who has mastered their saving's rate but has a hard time spending money.
This ties into Nick's "Money = Salt" analogy. As salt enhances the flavor of food, money enhances the quality of your life, relationships, and time. While salt can't be the main ingredient in a dish; money shouldn't be your life's main focus either. Nick reminds us that wealth should enhance your life but its continuous pursuit should not define it.
Nick also shares some research regarding how your health and relationships translate to salary. This was yet another great way for us think about how to value, in monetary terms, areas of our life that can often be ignored in the pursuit of wealth.
This book was hard for me to put down. It also has provided me with concepts that I'll think about, and apply to my life, daily. There are not that many books one can say that about!
I would recommend this book to anyone but would argue that it should be required reading for those in Levels 3 ($100,000-$1,000,000) & Level 4 ($1,000,000-$10,000,000). If you've read Nick's Just Keep Buying, or have generally started to routinely invest, this book is your answer in terms of how to think about "What do I do now?", what you've already accomplished, and how you want to focus from here.
One of the key ideas for me was the 0.01% spending rule. This provides a clear framework for spending guilt free. This will likely be an eye opener for anyone who has mastered their saving's rate but has a hard time spending money.
This ties into Nick's "Money = Salt" analogy. As salt enhances the flavor of food, money enhances the quality of your life, relationships, and time. While salt can't be the main ingredient in a dish; money shouldn't be your life's main focus either. Nick reminds us that wealth should enhance your life but its continuous pursuit should not define it.
Nick also shares some research regarding how your health and relationships translate to salary. This was yet another great way for us think about how to value, in monetary terms, areas of our life that can often be ignored in the pursuit of wealth.
This book was hard for me to put down. It also has provided me with concepts that I'll think about, and apply to my life, daily. There are not that many books one can say that about!
Read
September 11, 2025Nick Maggiulli’s book "The Wealth Ladder: Proven Strategies for Every Step of Your Financial Life" provides a clear and structured way to think about building wealth over time. Many people believe that simply earning more will automatically solve their money problems, but Maggiulli shows that what truly matters is how you use and manage money at different stages of your financial journey. The tactics that help you save your first few thousand dollars are not the same ones that will help you build lasting financial independence. This book lays out a roadmap that adapts as your circumstances evolve, explaining what to prioritize at each stage of wealth so that you don’t get stuck applying outdated strategies to new financial realities.
The starting point of Maggiulli’s framework is the idea that spending should be aligned with wealth, not income. Too often, people upgrade their lifestyle as soon as their paycheck grows, but this can be dangerous. If income suddenly dries up, those expenses remain. By focusing instead on net worth, you create a safer and more sustainable path forward. He illustrates this with the 0.01% rule: a dollar spent means something very different depending on how much wealth you have. For someone with \$100 saved, losing a dollar is significant, but for someone with \$10,000 in assets, it hardly matters. From this principle, Maggiulli builds the concept of the Wealth Ladder, where each step represents a new kind of financial freedom, such as not worrying about groceries, enjoying meals out, traveling without stress, or eventually shaping the world through philanthropy and business ownership. The key insight is that each level requires more than just earning - it requires careful spending and strategic growth.
A recurring problem people face is spending like they are wealthier than they actually are. Athletes and celebrities often serve as cautionary tales, earning millions only to go broke because they adopted lifestyles that relied entirely on continuous high income. The smarter path, Maggiulli argues, is to live one step below your current wealth level. If you have the freedom to dine out, resist the temptation to jump to private jets. This approach provides a cushion that helps you steadily climb the ladder instead of stumbling backward when life changes. True financial progress comes not from appearances but from discipline and patience.
As wealth grows, the way you earn and manage money must evolve. In the early stages, when you have little saved, almost any form of income is valuable, from odd jobs to side hustles. The main priority is to escape paycheck-to-paycheck living and create a buffer. Once you move beyond survival, your focus should shift toward increasing earning power by building skills, gaining credentials, or advancing within your career. A side hustle that made sense at the beginning might transform into a small business later, allowing you to earn more without simply working extra hours. Eventually, as your net worth climbs into the hundreds of thousands, each financial decision carries more weight. At that stage, you should filter opportunities through the 1-Percent Rule: if an activity doesn’t have the potential to increase your wealth by at least one percent, it may not be worth your time.
This evolving strategy eventually leads to leverage, the key to separating income from time. Without leverage, your earnings are limited by how many hours you can personally work. Maggiulli explains three primary forms of leverage: labor, capital, and content. Labor involves using other people’s efforts to expand your own, such as hiring workers to scale a business. Capital involves putting money to work, whether through real estate, investments, or managing funds. Content, the newest form, allows ideas and creations to spread widely online at little cost, multiplying your reach without additional effort. Each of these methods offers ways to grow wealth far beyond what is possible through hourly labor alone. They are not without risks, especially when managing people or large sums of money, but learning to use leverage wisely is essential to climbing higher on the Wealth Ladder.
At certain points in the journey, investing in yourself becomes the most valuable step. In the range of \$10,000 to \$100,000 in net worth, career decisions have outsized impact. Skill development, education, and strategic moves can accelerate progress faster than almost any investment. However, not all education is worth the cost. Taking on heavy debt too early may trap you instead of helping you rise. The best approach is to identify opportunities that combine what you are good at, what you enjoy, and what the market will pay for. By pursuing the overlap of these factors, you increase your chances of finding fulfilling and financially rewarding work. Even smaller steps, such as learning through online courses or part-time projects, can compound into significant opportunities over time. Missing these chances can quietly cost more than visible financial mistakes because they limit your long-term potential.
While much of the book focuses on practical strategies for earning and spending, Maggiulli emphasizes that money is not an end in itself. Financial wealth is best understood as a multiplier that enhances the other forms of wealth in life. Without meaningful relationships, good health, or a sense of purpose, money cannot create lasting satisfaction. He identifies five types of wealth: financial, social, mental, physical, and time. Social wealth comes from connections with family, friends, and community, which research shows are central to happiness and longevity. Mental wealth reflects mindset and emotional health, reminding us that financial success without inner peace is hollow. Physical wealth is health itself, without which nothing else matters, and time wealth is the freedom to spend hours in meaningful ways. When these other areas are strong, financial wealth amplifies them - turning small joys into rich experiences. But when they are weak, money alone cannot fill the gap.
This broader view prevents the trap of obsessing over money for its own sake. Pursuing financial goals without balance often leads to burnout or disappointment. By seeing money as a supportive tool rather than the sole objective, you create a more complete and satisfying life. Whether it means funding experiences with loved ones, gaining the freedom to choose work you enjoy, or accessing better health care, money should serve life, not dominate it. In this way, Maggiulli grounds financial advice in a more human perspective, showing how numbers connect back to real well-being.
"The Wealth Ladder: Proven Strategies for Every Step of Your Financial Life" ultimately offers a framework that adapts to each stage of wealth. It teaches that spending wisely, evolving your money strategies, using leverage, and investing in yourself all matter, but only in ways appropriate to your current level. It shows that real financial progress is not about shortcuts or appearances but about steady, thoughtful choices. And it reminds us that wealth is most powerful when it amplifies health, relationships, purpose, and time. Maggiulli’s roadmap is not just about getting rich - it is about using money to build a life worth living.
The starting point of Maggiulli’s framework is the idea that spending should be aligned with wealth, not income. Too often, people upgrade their lifestyle as soon as their paycheck grows, but this can be dangerous. If income suddenly dries up, those expenses remain. By focusing instead on net worth, you create a safer and more sustainable path forward. He illustrates this with the 0.01% rule: a dollar spent means something very different depending on how much wealth you have. For someone with \$100 saved, losing a dollar is significant, but for someone with \$10,000 in assets, it hardly matters. From this principle, Maggiulli builds the concept of the Wealth Ladder, where each step represents a new kind of financial freedom, such as not worrying about groceries, enjoying meals out, traveling without stress, or eventually shaping the world through philanthropy and business ownership. The key insight is that each level requires more than just earning - it requires careful spending and strategic growth.
A recurring problem people face is spending like they are wealthier than they actually are. Athletes and celebrities often serve as cautionary tales, earning millions only to go broke because they adopted lifestyles that relied entirely on continuous high income. The smarter path, Maggiulli argues, is to live one step below your current wealth level. If you have the freedom to dine out, resist the temptation to jump to private jets. This approach provides a cushion that helps you steadily climb the ladder instead of stumbling backward when life changes. True financial progress comes not from appearances but from discipline and patience.
As wealth grows, the way you earn and manage money must evolve. In the early stages, when you have little saved, almost any form of income is valuable, from odd jobs to side hustles. The main priority is to escape paycheck-to-paycheck living and create a buffer. Once you move beyond survival, your focus should shift toward increasing earning power by building skills, gaining credentials, or advancing within your career. A side hustle that made sense at the beginning might transform into a small business later, allowing you to earn more without simply working extra hours. Eventually, as your net worth climbs into the hundreds of thousands, each financial decision carries more weight. At that stage, you should filter opportunities through the 1-Percent Rule: if an activity doesn’t have the potential to increase your wealth by at least one percent, it may not be worth your time.
This evolving strategy eventually leads to leverage, the key to separating income from time. Without leverage, your earnings are limited by how many hours you can personally work. Maggiulli explains three primary forms of leverage: labor, capital, and content. Labor involves using other people’s efforts to expand your own, such as hiring workers to scale a business. Capital involves putting money to work, whether through real estate, investments, or managing funds. Content, the newest form, allows ideas and creations to spread widely online at little cost, multiplying your reach without additional effort. Each of these methods offers ways to grow wealth far beyond what is possible through hourly labor alone. They are not without risks, especially when managing people or large sums of money, but learning to use leverage wisely is essential to climbing higher on the Wealth Ladder.
At certain points in the journey, investing in yourself becomes the most valuable step. In the range of \$10,000 to \$100,000 in net worth, career decisions have outsized impact. Skill development, education, and strategic moves can accelerate progress faster than almost any investment. However, not all education is worth the cost. Taking on heavy debt too early may trap you instead of helping you rise. The best approach is to identify opportunities that combine what you are good at, what you enjoy, and what the market will pay for. By pursuing the overlap of these factors, you increase your chances of finding fulfilling and financially rewarding work. Even smaller steps, such as learning through online courses or part-time projects, can compound into significant opportunities over time. Missing these chances can quietly cost more than visible financial mistakes because they limit your long-term potential.
While much of the book focuses on practical strategies for earning and spending, Maggiulli emphasizes that money is not an end in itself. Financial wealth is best understood as a multiplier that enhances the other forms of wealth in life. Without meaningful relationships, good health, or a sense of purpose, money cannot create lasting satisfaction. He identifies five types of wealth: financial, social, mental, physical, and time. Social wealth comes from connections with family, friends, and community, which research shows are central to happiness and longevity. Mental wealth reflects mindset and emotional health, reminding us that financial success without inner peace is hollow. Physical wealth is health itself, without which nothing else matters, and time wealth is the freedom to spend hours in meaningful ways. When these other areas are strong, financial wealth amplifies them - turning small joys into rich experiences. But when they are weak, money alone cannot fill the gap.
This broader view prevents the trap of obsessing over money for its own sake. Pursuing financial goals without balance often leads to burnout or disappointment. By seeing money as a supportive tool rather than the sole objective, you create a more complete and satisfying life. Whether it means funding experiences with loved ones, gaining the freedom to choose work you enjoy, or accessing better health care, money should serve life, not dominate it. In this way, Maggiulli grounds financial advice in a more human perspective, showing how numbers connect back to real well-being.
"The Wealth Ladder: Proven Strategies for Every Step of Your Financial Life" ultimately offers a framework that adapts to each stage of wealth. It teaches that spending wisely, evolving your money strategies, using leverage, and investing in yourself all matter, but only in ways appropriate to your current level. It shows that real financial progress is not about shortcuts or appearances but about steady, thoughtful choices. And it reminds us that wealth is most powerful when it amplifies health, relationships, purpose, and time. Maggiulli’s roadmap is not just about getting rich - it is about using money to build a life worth living.
August 19, 2025
This should have been a blog post
September 21, 2025
I read this after listening to Maggiulli on The Art of Manliness. He spoke about how to think about levels of wealth and the kinds of spending decisions and considerations one should make at each level. This got me reflecting on my own relationship with wealth and how I have no idea how to respond to increasing wealth—and needed a framework to think about it. I realised that the sensible choices I made in the first half of my life are not necessarily sensible as I get older.
Maggiulli gives a framework of six levels:
Level 1 – living from paycheck to paycheck
Level 2 – Grocery Freedom, where you can put whatever you want into your shopping cart
Level 3 – Restaurant Freedom, where you no longer choose where you eat based on price
Level 4 – Holiday Freedom, where you can go wherever you choose on holiday
Level 5 – House Freedom, where you can afford to live wherever you choose
Level 6 – Impact Freedom, where you can influence society with your spending.
My parents never left Level Two while I was a child in their care and I’m sure they vacillated between Levels One and Two depending on circumstances. They were not good role models for my current situation. It wasn’t until my mid-twenties that I left Level One for good. The spending decisions that were once about survival now make me a reflexive tight-arse. I reached Level Three in my late thirties and have only recently broken into Level Four. The question for me is what freedoms my Level Four wealth should allow, despite my Level One impulses.
Maggiulli gives an example in Level One of an entrepreneur who believed he could go from zero to a million in wealth within a year by wit alone. He ended up with about $60,000 when he stopped the experiment after eight months due to health issues. This is a massive achievement but over 1,000% short of his goal—a large order of magnitude error. It reflects how hard it is to build wealth quickly. There are no hacks, and anyone who thinks it can be done easily is foolish. As the saying goes: Who is more foolish, the fool or the fool who follows him? Lesson: avoid any guru who promises “get rich quick, for a fee.”
When choosing the work that will get you through Level Two, Maggiulli suggests you need two of the following three qualities: “What you’re good at; what you’re interested in; what people will pay for” (p. 61). The catalyst for me was completing my nursing degree, which ticked all three boxes (except maybe being good at it, which came with experience). Taking three years to complete it kept me vacillating between Levels One and Two for three extra years. Once I finished, I left living paycheck to paycheck quickly and moved on to Grocery Freedom. I met my wife and we moved from Level Two to Level Three in our late thirties. It took me 10–12 years to move through Level Three and around the same time to get to Level Four.
Maggiulli identifies Level Four as the hardest to leave. The skill set that got me to Level Four won’t help me reach Level Five. I have no plans to start a growth-oriented business, as the risk of being dragged back down levels is too high. My conclusion is that I would happily spend my life comfortably in Level Four.
Chapter Eight, which focuses on Level Five, is the longest and the one Maggiulli puts the most thought into. He identifies owning your own business as the best way to reach Level Five but also asks, why would you? He shows that people at Level Five are no happier than those at Level Four and face a host of new problems. Once people know you are wealthy, there is an expectation that you share your wealth. Others may look for reasons to sue you (perhaps more of an American problem). Wealth at this level can create entitlement in children and resentment within families. The theme of Level Five is “Only the paranoid survive.” Maggiulli asks readers to carefully consider their aspirations to reach Level Five, as it won’t necessarily bring happiness and will likely cause more problems.
Reading this reinforced my satisfaction with being in Level Four and tempered any desire to push for Level Five. It aligns with what I learned from Thomas Stanley’s The Millionaire Next Door. I am financially comfortable and satisfied where I am, doing work I cannot imagine wanting to retire from. Maybe we will reach Level Five slowly over the next 20–30 years, but you won’t know it, because our day-to-day spending decisions will not change.
Maggiulli also proposes the 0.01% rule: you should be able to spend 0.01% of your wealth without thinking about it. If you have $10,000 in wealth, a $1 purchase should not worry you. If you have $1,000,000, $100 should feel the same. It’s a simple but useful heuristic.
I found this a helpful book for my situation and for understanding and reflecting on the meaning of wealth. It helped me see my own journey more clearly and respond with more ease (don’t sweat the small stuff so much). The book could have been shorter and still had the same impact, though I appreciated the detail in Chapter Eight. This is a valuable read for anyone who has moved through the levels of wealth and wants a framework for what should—and shouldn’t—change as they climb. I expect to reflect on its lessons for many years to come.
Maggiulli gives a framework of six levels:
Level 1 – living from paycheck to paycheck
Level 2 – Grocery Freedom, where you can put whatever you want into your shopping cart
Level 3 – Restaurant Freedom, where you no longer choose where you eat based on price
Level 4 – Holiday Freedom, where you can go wherever you choose on holiday
Level 5 – House Freedom, where you can afford to live wherever you choose
Level 6 – Impact Freedom, where you can influence society with your spending.
My parents never left Level Two while I was a child in their care and I’m sure they vacillated between Levels One and Two depending on circumstances. They were not good role models for my current situation. It wasn’t until my mid-twenties that I left Level One for good. The spending decisions that were once about survival now make me a reflexive tight-arse. I reached Level Three in my late thirties and have only recently broken into Level Four. The question for me is what freedoms my Level Four wealth should allow, despite my Level One impulses.
Maggiulli gives an example in Level One of an entrepreneur who believed he could go from zero to a million in wealth within a year by wit alone. He ended up with about $60,000 when he stopped the experiment after eight months due to health issues. This is a massive achievement but over 1,000% short of his goal—a large order of magnitude error. It reflects how hard it is to build wealth quickly. There are no hacks, and anyone who thinks it can be done easily is foolish. As the saying goes: Who is more foolish, the fool or the fool who follows him? Lesson: avoid any guru who promises “get rich quick, for a fee.”
When choosing the work that will get you through Level Two, Maggiulli suggests you need two of the following three qualities: “What you’re good at; what you’re interested in; what people will pay for” (p. 61). The catalyst for me was completing my nursing degree, which ticked all three boxes (except maybe being good at it, which came with experience). Taking three years to complete it kept me vacillating between Levels One and Two for three extra years. Once I finished, I left living paycheck to paycheck quickly and moved on to Grocery Freedom. I met my wife and we moved from Level Two to Level Three in our late thirties. It took me 10–12 years to move through Level Three and around the same time to get to Level Four.
Maggiulli identifies Level Four as the hardest to leave. The skill set that got me to Level Four won’t help me reach Level Five. I have no plans to start a growth-oriented business, as the risk of being dragged back down levels is too high. My conclusion is that I would happily spend my life comfortably in Level Four.
Chapter Eight, which focuses on Level Five, is the longest and the one Maggiulli puts the most thought into. He identifies owning your own business as the best way to reach Level Five but also asks, why would you? He shows that people at Level Five are no happier than those at Level Four and face a host of new problems. Once people know you are wealthy, there is an expectation that you share your wealth. Others may look for reasons to sue you (perhaps more of an American problem). Wealth at this level can create entitlement in children and resentment within families. The theme of Level Five is “Only the paranoid survive.” Maggiulli asks readers to carefully consider their aspirations to reach Level Five, as it won’t necessarily bring happiness and will likely cause more problems.
Reading this reinforced my satisfaction with being in Level Four and tempered any desire to push for Level Five. It aligns with what I learned from Thomas Stanley’s The Millionaire Next Door. I am financially comfortable and satisfied where I am, doing work I cannot imagine wanting to retire from. Maybe we will reach Level Five slowly over the next 20–30 years, but you won’t know it, because our day-to-day spending decisions will not change.
Maggiulli also proposes the 0.01% rule: you should be able to spend 0.01% of your wealth without thinking about it. If you have $10,000 in wealth, a $1 purchase should not worry you. If you have $1,000,000, $100 should feel the same. It’s a simple but useful heuristic.
I found this a helpful book for my situation and for understanding and reflecting on the meaning of wealth. It helped me see my own journey more clearly and respond with more ease (don’t sweat the small stuff so much). The book could have been shorter and still had the same impact, though I appreciated the detail in Chapter Eight. This is a valuable read for anyone who has moved through the levels of wealth and wants a framework for what should—and shouldn’t—change as they climb. I expect to reflect on its lessons for many years to come.
December 15, 2025
At times, great. At other times, nonsense.
Maggiulli has some great advice on how to move up the wealth ladder, and he thinks about it systematically. For anyone wanting to grow and preserve their wealth, this book is great.
Don’t concern yourself with spending .01% of your wealth. This is just too little to ever do your wealth any damage.
Spend based off of wealth, not income.
Specifically, spend based off liquid income. Wealth locked into a house is too illiquid and probably should not be calculated when thinking about the .01% rule.
Most Americans think of homes as investments. Maybe, but they are more consumption goods, something that is costing us, not something that is increasing our wealth.
That said, some of the things he writes are bullshit. The framing device for the whole book is his idea of the wealth ladder:
LEVEL 1. Paycheck-to-paycheck ($<10k): You are conscious of every dollar you spend. This includes people with crippling debt.
LEVEL 2. Grocery freedom ($10k-$100k): You can buy what you want at the grocery store without worrying about your finances.
LEVEL 3. Restaurant freedom ($100k-$1M): You can eat what you want at restaurants.
LEVEL 4. Travel freedom ($1M-$10M): You travel when and where you want.
LEVEL 5. House freedom ($10M-$100M): You can afford your dream home with little impact on your overall finances.
LEVEL 6. Impact freedom ($100M+): You can use money to have a profound impact on the lives of others (e.g., buy businesses, engage in large-scale philanthropy, etc.).
And he claims that the main thing in feeling more wealthy is going from one level to the next level of the ladder, as getting more money but not moving up a rung on the ladder doesn’t make you feel wealthy. “What's interesting about the intersection of the Wealth Ladder with spending is that you quickly realize that certain sums of money won't improve your life in any noticeable way. For example, for the typical person in Level 3 ($100k–$1M), an extra $10,000 won't move them to Level 4.”
That is nonsense. Having $750 grand allows you to do much more and to feel much more wealthy than having $250 grand, even though they are in the same Level.
He details each level on the wealth ladder. Early on, his observations are cogent, as he has been on the first four steps of the ladder. But the discussion on Levels 5 and 6 are hot air. He has never stepped on those rungs, and he offers no insights.
Still, these flaws are not enough to sink the book. Just take his framework with a grain of salt.
Maggiulli has some great advice on how to move up the wealth ladder, and he thinks about it systematically. For anyone wanting to grow and preserve their wealth, this book is great.
Don’t concern yourself with spending .01% of your wealth. This is just too little to ever do your wealth any damage.
Spend based off of wealth, not income.
Specifically, spend based off liquid income. Wealth locked into a house is too illiquid and probably should not be calculated when thinking about the .01% rule.
Most Americans think of homes as investments. Maybe, but they are more consumption goods, something that is costing us, not something that is increasing our wealth.
That said, some of the things he writes are bullshit. The framing device for the whole book is his idea of the wealth ladder:
LEVEL 1. Paycheck-to-paycheck ($<10k): You are conscious of every dollar you spend. This includes people with crippling debt.
LEVEL 2. Grocery freedom ($10k-$100k): You can buy what you want at the grocery store without worrying about your finances.
LEVEL 3. Restaurant freedom ($100k-$1M): You can eat what you want at restaurants.
LEVEL 4. Travel freedom ($1M-$10M): You travel when and where you want.
LEVEL 5. House freedom ($10M-$100M): You can afford your dream home with little impact on your overall finances.
LEVEL 6. Impact freedom ($100M+): You can use money to have a profound impact on the lives of others (e.g., buy businesses, engage in large-scale philanthropy, etc.).
And he claims that the main thing in feeling more wealthy is going from one level to the next level of the ladder, as getting more money but not moving up a rung on the ladder doesn’t make you feel wealthy. “What's interesting about the intersection of the Wealth Ladder with spending is that you quickly realize that certain sums of money won't improve your life in any noticeable way. For example, for the typical person in Level 3 ($100k–$1M), an extra $10,000 won't move them to Level 4.”
That is nonsense. Having $750 grand allows you to do much more and to feel much more wealthy than having $250 grand, even though they are in the same Level.
He details each level on the wealth ladder. Early on, his observations are cogent, as he has been on the first four steps of the ladder. But the discussion on Levels 5 and 6 are hot air. He has never stepped on those rungs, and he offers no insights.
Still, these flaws are not enough to sink the book. Just take his framework with a grain of salt.
July 22, 2025
Just Keep Buying is one of the few books I can point to and say that I regularly implement the strategies from it in my financial life. So when I heard Nick was writing a new book, I was pretty sure it would be another great one.
I wasn’t wrong, the book was brilliant! It goes beyond just showing standard financial strategies and breaks down each individual level of wealth. Rather than offering general financial advice, Nick goes deep into each of the levels - what they are like, the problems people encounter and how to defend against these and what is required to get to the next level. Even the levels that don’t apply to me personally were very interesting.
Nick also talks about the trade offs required to get to the higher levels which I think is rarely spoken about in personal finance so it’s great to read someone properly address this. He shares personal stories of his journey which are great to read and they show some of the intangible barriers to climbing the levels for people from lower socioeconomic backgrounds which aren’t commonly thought about or easily quantified.
One of the most insightful parts of the whole book for me was towards the end when Nick highlights the fact that money matters, until it doesn’t. I always try to highlight to people that money is a tool, not an end in itself. I’m not perfect at this myself by any means, but I think it’s such an important point to make and it’s easily missed in the financial space given there is such a focus on figures and objective and tangible metrics. Nick does a great job of explaining this in detail and highlighting what does truly matter.
Overall, I think it’s a brilliant book. It’s got a lot in it for everyone, from the lower levels of wealth to those at the top. It’s an excellent follow up book from Just Keep Buying and answers a lot of questions people may have after reading that.
An easy 5 stars for me!
I wasn’t wrong, the book was brilliant! It goes beyond just showing standard financial strategies and breaks down each individual level of wealth. Rather than offering general financial advice, Nick goes deep into each of the levels - what they are like, the problems people encounter and how to defend against these and what is required to get to the next level. Even the levels that don’t apply to me personally were very interesting.
Nick also talks about the trade offs required to get to the higher levels which I think is rarely spoken about in personal finance so it’s great to read someone properly address this. He shares personal stories of his journey which are great to read and they show some of the intangible barriers to climbing the levels for people from lower socioeconomic backgrounds which aren’t commonly thought about or easily quantified.
One of the most insightful parts of the whole book for me was towards the end when Nick highlights the fact that money matters, until it doesn’t. I always try to highlight to people that money is a tool, not an end in itself. I’m not perfect at this myself by any means, but I think it’s such an important point to make and it’s easily missed in the financial space given there is such a focus on figures and objective and tangible metrics. Nick does a great job of explaining this in detail and highlighting what does truly matter.
Overall, I think it’s a brilliant book. It’s got a lot in it for everyone, from the lower levels of wealth to those at the top. It’s an excellent follow up book from Just Keep Buying and answers a lot of questions people may have after reading that.
An easy 5 stars for me!
September 23, 2025
I came across Nick Maggiulli after a colleague suggested a blog post of Maggiulli's that I enjoyed (The Death of the Amex Lounge). I have been interested in investing and personal finance since I graduated college in 1997 and realized that life was expensive, I wasn't making very much money, and I needed to somehow build wealth. I was fortunate at the time to stumble across a classic book on investing, A Random Walk Down Wall Street, right as I was starting my career, and I have come across a few other useful books along the way. I have to say that The Wealth Ladder ranks among the best and most interesting that I've read, and I think it would be ideal for a new college grad. One of the things that's best about it is that Maggiulli provides useful advice and context that most other books on personal finance or investing don't cover. Breaking wealth down into tiers (by factors of ten) seems simple but it's a powerful idea because the strategies that work for reaching one level won't necessarily work in another. Frugality is extremely important when you're lower on the wealth ladder, but in order to build wealth, at some point you have to focus on increasing your income. There also comes a point where you realistically aren't going to climb any higher on the wealth ladder, and you may not even want to. Maggiulli's concepts of defining the type of freedom that is associated with each tier, and his approach to estimating the amount you can spend without negatively impacting your wealth, are simple, brilliant, and useful. Finally, I would like to note that Maggiulli comes across as very genuine and likable. He didn't grow up wealthy, which comes across in his writing. He neither judges people for their wealth nor takes his own success for granted. He merely provides a simple and powerful framework for understanding your own wealth, and what it will take to meaningfully change it. Along the way, he's an engaging writer. Highly recommended.
January 5, 2026
In The Wealth Ladder: Proven Strategies for Financial Freedom, the focus shifts from the high-level theory of market pioneers to a pragmatic, step-by-step framework for the individual investor. Nick Maggiulli builds his book around the central metaphor of a ladder, where each rung represents a specific level of financial security and sophistication, starting from the basic elimination of high-interest debt and moving toward the ultimate goal of passive income and generational wealth. The author emphasizes that financial success is less about “stock picking” and more about the mastery of personal cash flow and the disciplined application of asset allocation. By categorizing financial growth into distinct stages, the book helps readers identify exactly where they are currently standing and, more importantly, what specific actions are required to reach the next level without taking unnecessary risks.
The strength of this guide lies in its accessibility and its refusal to rely on “get-rich-quick” schemes, instead favoring a boring but effective combination of automated savings, tax-advantaged accounts, and low-cost index investing. While it echoes some of the diversification principles found in books like "In Pursuit of the Perfect Portfolio," it translates those academic concepts into a “to-do list” for the modern professional. It addresses the psychological hurdles of investing just as Howard Marks does, but it focuses on the internal discipline of the household budget rather than the external cycles of the global market. Ultimately, the book serves as a comprehensive roadmap for those who want a clear, linear path to follow, providing the structural confidence needed to climb toward financial independence one rung at a time.
This review is originally published within the Money Book Cirlcle in my newsletter. Sign up here for regular reviews of the hottest books on money and technology: https://igorpejic.substack.com/
The strength of this guide lies in its accessibility and its refusal to rely on “get-rich-quick” schemes, instead favoring a boring but effective combination of automated savings, tax-advantaged accounts, and low-cost index investing. While it echoes some of the diversification principles found in books like "In Pursuit of the Perfect Portfolio," it translates those academic concepts into a “to-do list” for the modern professional. It addresses the psychological hurdles of investing just as Howard Marks does, but it focuses on the internal discipline of the household budget rather than the external cycles of the global market. Ultimately, the book serves as a comprehensive roadmap for those who want a clear, linear path to follow, providing the structural confidence needed to climb toward financial independence one rung at a time.
This review is originally published within the Money Book Cirlcle in my newsletter. Sign up here for regular reviews of the hottest books on money and technology: https://igorpejic.substack.com/
September 14, 2025
The Wealth Ladder by Nick Maggiulli is a brilliant and accessible guide to personal finance that reframes the traditional approach to building wealth. The book's core strength is its simple yet powerful framework: a six-rung ladder that illustrates how financial strategies must evolve with one's net worth. Maggiulli uses this concept to provide clear, actionable advice tailored to each stage of financial growth.
What makes this book so effective is its realistic and empathetic perspective. Maggiulli understands that a "one-size-fits-all" approach to money simply doesn't work. For each level of the ladder, he offers practical guidance on how to navigate one's unique financial situation, always with the goal of ensuring a better life.
A particularly insightful takeaway is the book's acknowledgement that reaching the highest rungs of the ladder may not be for everyone. Maggiulli wisely notes that after a certain level, climbing higher becomes a choice, not a necessity, and is only worthwhile if one is truly motivated to do so. He also makes a compelling distinction, arguing that a traditional job alone won't get you to the top tier; it requires a fundamental shift in mindset and approach.
Ultimately, The Wealth Ladder is a fantastic resource that uses a straightforward framework to provide a wealth of financial advice, making it a valuable read for anyone looking to understand and improve their financial journey.
What makes this book so effective is its realistic and empathetic perspective. Maggiulli understands that a "one-size-fits-all" approach to money simply doesn't work. For each level of the ladder, he offers practical guidance on how to navigate one's unique financial situation, always with the goal of ensuring a better life.
A particularly insightful takeaway is the book's acknowledgement that reaching the highest rungs of the ladder may not be for everyone. Maggiulli wisely notes that after a certain level, climbing higher becomes a choice, not a necessity, and is only worthwhile if one is truly motivated to do so. He also makes a compelling distinction, arguing that a traditional job alone won't get you to the top tier; it requires a fundamental shift in mindset and approach.
Ultimately, The Wealth Ladder is a fantastic resource that uses a straightforward framework to provide a wealth of financial advice, making it a valuable read for anyone looking to understand and improve their financial journey.
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