From the author of 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 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?

Autorentext

Nick Maggiulli is the Chief Operating Officer and Data Scientist at Ritholtz Wealth Management, where he oversees operations across the firm and provides insights on business intelligence. He is also the author of Just Keep Buying, his first book, and OfDollarsAndData.com, a blog focused on the intersection of data and personal finance. His work has been featured in The Wall Street Journal, CNBC, and The Los Angeles Times. Mr. Maggiulli graduated from Stanford University with a degree in Economics and currently resides in New York City.

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**NEW YORK TIMES BESTSELLER

“Investors of all ages would benefit from reading Mr. Maggiulli’s book, which holds especially valuable lessons for young people.”
– Scott Nations, The Wall Street

From the author of Just Keep Buying, a groundbreaking new framework for building wealth**

Do you feel stuck financially? Are you working more, trying to spend less, yet still not seeing results? If so, the issue isn’t your effort—it’s your approach.

This is where The Wealth Ladder comes in. It’s not a get-rich-quick scheme or a one-size-fits-all solution to your money problems. It’s a new philosophy for thinking about money altogether.

In a world where interest rates shift, careers take new turns, and desires evolve, our financial strategy must keep up. This is why The Wealth Ladder breaks wealth into six distinct levels, each demanding its own strategy. What works at Level 1 won’t cut it at Level 6—and vice versa. You’ll learn exactly how to handle your spending, income, investments, and more, with tailored advice for every stage. The result? Smarter choices, less stress, and a clear path upward.

Because building wealth isn’t just about hard work—it’s about applying the right strategy at the right time to focus on what matters most.

Fortunately, you won’t need to guess on where to focus next because The Wealth Ladder has the answer. The only question left is: Are you ready to climb it?

Leseprobe
Chapter 1

Spending up
the Wealth Ladder

When Cleopatra was the queen of Egypt, she was the richest woman in the world. To entertain her guests, she often threw lavish parties. Following a series of such feasts, Mark Antony, the Roman general, remarked that she hosted the most extravagant banquets in the world. Wanting to impress Antony even further, Cleopatra claimed that she could spend 10 million sesterces (about $20 million today) on a single meal. Thinking that such a feat was impossible, Antony made a bet with the boastful Cleopatra. The Egyptian queen accepted and claimed that she would prove him wrong the next day.

To keep her promise, the following day Cleopatra had her servants set up a banquet similar to the ones she and Antony had enjoyed in the previous days. But this time Cleopatra wore one of her most prized possessions-a pair of pearl earrings. These weren't just any pearl earrings though. They were considered the largest pearls the ancient world had ever seen.

When Antony arrived at the banquet, he joked that there was no way that it had cost 10 million sesterces. Cleopatra replied that he was correct, and that she would consume the 10 million sesterces herself. To fulfill her promise, Cleopatra had her servants bring out a glass of vinegar strong enough to dissolve pearls. With Antony watching, she removed one of the prized pearls from her earrings, dropped it in the glass, and watched it dissolve before drinking it. As Cleopatra began to remove the pearl from her other earring, Antony conceded that he had lost the bet.

The story of Cleopatra and her pearl earrings highlights the lengths people will go to to flaunt their wealth. But it also illustrates how spending money is relative. There are people like Cleopatra, who can consume vast resources without impacting their wealth. Then there are others who must track every dollar they spend in order to stay afloat. It reminds me of the time Jay-Z said, "What's fifty grand to a mother****er like me? Can you please remind me?" When Jay wrote those lyrics in 2011, he had an estimated net worth of $450 million. This means that, at the time, "fifty grand" represented about 0.01 percent (or 1/10,000) of Jay-Z's fortune.

This data point might seem random, but 0.01 percent of your net worth is actually a great proxy for what constitutes a trivial amount of money for you. For example, if you have a net worth of $10,000, paying $1 more (or 0.01 percent more) for something shouldn't have any long-term impact on your finances. Similarly, if you have a net worth of $100,000, you should be able to pay $10 more for an item without skipping a beat. I call this the 0.01% Rule ("the Point Zero One Percent Rule").

Using the 0.01% Rule as a guide, we can demonstrate how the Wealth Ladder relates to spending money. To do this, I've listed the six levels of the Wealth Ladder below and how they relate to different spending categories:

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.).

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. This isn't enough to free someone from considering the cost of lodging and transportation (i.e., travel freedom) for the rest of their life. However, that same $10,000 given to someone in Level 1 will likely get them to Level 2, unless they are deeply in debt. The same amount of money given to people on different levels of the Wealth Ladder will have a drastically different impact on their lives.

The reason why the Wealth Ladder integrates so well with each spending category listed above is because of the 0.01% Rule. In each level, a single spending decision represents about 0.01 percent of the net worth level shown. For example, let's say you are at the grocery store deciding whether to purchase a dozen eggs for $3.99 or a dozen cage-free eggs for $4.99. If your net worth is $100, this single choice (paying $1 extra for cage-free eggs) would have a large impact on your finances, as it represents 1 percent of your total wealth. However, if you were worth over $10,000, the decision to spend $1 more on cage-free eggs would be relatively unimportant to your finances. In other words, if you're worth $10,000, an extra dollar on eggs won't change your life, but if you're …