Most personal finance advice is total garbage. You’ve probably heard it all before: "Skip the lattes," "Cut your Netflix subscription," or "Live like a monk for a decade so you can be rich when you're eighty." It's exhausting. And honestly, it usually doesn't work. That’s why the just keep buying book by Nick Maggiulli caused such a massive stir in the investing world when it dropped. It didn't lead with shame or frugality. Instead, it led with data.
Nick Maggiulli is the COO of Ritholtz Wealth Management and the data scientist behind the popular blog Of Dollars and Data. He’s not a "vibe" guy. He's a spreadsheet guy. When he tells you that your Starbucks habit isn't the reason you’re not a millionaire, he isn’t just being nice—he’s looking at the math. The core premise of the book is refreshingly simple: the biggest factor in your long-term wealth isn't picking the perfect stock or timing the market perfectly. It’s simply the act of buying diverse assets consistently, regardless of what the headlines say.
The Counter-Intuitive Truth About Saving
We’ve been lied to about "saving." We are told to save as much as possible, as early as possible. But Maggiulli argues that for most people starting out, their biggest financial asset isn't their brokerage account. It's their human capital. If you’re twenty-two and making $40,000 a year, spending five hours a week obsessing over whether to buy $100 of Nvidia or an S&P 500 index fund is a colossal waste of time. You should be spending that time learning how to make $60,000.
💡 You might also like: Global Top Business Schools: What Most People Get Wrong
Think about it this way.
A 10% return on $1,000 is a hundred bucks. A 10% raise on a $50k salary is five thousand bucks. The just keep buying book emphasizes that in the early stages of your career, focus on income. In the later stages, focus on investment returns. It’s a shift in perspective that takes the pressure off young professionals who feel "behind" because they can't afford to max out their 401(k) yet.
Maggiulli looks at "The 2-Cent Rule" which basically suggests that if you can spend money to improve your life or save time without hurting your long-term goals, you should just do it. Stop stressing the small stuff. It’s the big wins—the career jumps, the home purchases, the consistent monthly contributions—that actually move the needle.
Market Timing Is a Loser's Game
Everyone thinks they can wait for the "dip." You know the feeling. You see the stock market hitting all-time highs and you think, "I'll just wait until it crashes, then I’ll put my money in."
Maggiulli proves this is a statistically terrible idea.
Using historical data, he compares "Buying the Dip" (waiting for a market drop) versus "Just Keep Buying" (investing immediately). Even if you had perfect information—meaning you knew exactly when the absolute bottom of a crash was—you would still lose to the person who just invested their money as soon as they had it about 70% of the time. Why? Because while you’re waiting for a 20% crash, the market might go up 40%. Even after the crash, the prices are higher than they were when you started waiting.
💡 You might also like: ATI Inc Stock Explained: Why the Aerospace Boom is Changing Everything
It’s painful to watch. You sit on the sidelines with cash, watching the world get richer, hoping for bad news just so you can enter the market. It’s a psychological trap. The just keep buying book advocates for "averaging in" not because it guarantees the lowest price, but because it guarantees you're actually in the game.
What to Buy? (Keep It Boring)
Maggiulli doesn't get fancy here. He isn't pitching the latest crypto coin or a "secret" hedge fund strategy. He’s talking about income-producing assets.
- Global stock indices.
- Real estate (REITs or physical).
- Bonds (when appropriate).
- Your own education.
He treats investing as a chore, like brushing your teeth. You don’t wait for "the right time" to brush your teeth. You just do it because the long-term consequences of not doing it are disgusting.
✨ Don't miss: Savings Account Rates News: Why Your Bank Is (Quietly) Lowering Your APY
The Psychology of the Big Crash
It’s easy to say "just keep buying" when the market is green. It’s a whole different story when the S&P 500 is down 30% and the news says the world is ending. Maggiulli spends a good chunk of the book addressing the fear factor. He uses the 2008 financial crisis and the 2020 COVID crash as case studies.
The data shows that for a long-term investor, a crash is actually a gift. You’re getting more shares for every dollar. But humans aren't built to think in "shares." We think in "dollars," and seeing that dollar balance drop feels like a physical punch to the gut. Maggiulli’s research suggests that having a "cash cushion" or a diversified portfolio isn't just about the math—it's about "sleep insurance." If your portfolio is so aggressive that you sell during a crash, the math doesn't matter because you've failed the psychological test.
Why Frugality Is Overrated
This is probably the most controversial part of the just keep buying book. Maggiulli argues that obsessing over small expenses has a diminishing return. If you spend three hours researching the best price for a new toaster to save $15, you’ve valued your time at $5 an hour.
He introduces the concept of "Guilt-Free Spending." If you increase your income, you should be allowed to spend a portion of that increase. He suggests a 50% rule: every time you get a raise, save half of it and spend the other half. This avoids the "lifestyle creep" trap while still letting you enjoy the fruits of your labor. You aren't a robot. You shouldn't live like one.
Actionable Next Steps for the Intelligent Investor
If you're ready to stop overthinking and start building actual wealth, here is how you apply the logic from Maggiulli's work right now:
- Audit your "Why": Determine if you are in the "Save" phase or the "Invest" phase. If your total assets are less than your annual income, your primary goal should be increasing your earning power through skills or side hustles.
- Automate the boring stuff: Set up a recurring transfer to your brokerage account the day after your paycheck hits. Don't look at the price. Don't check the P/E ratio. Just buy.
- The 50% Raise Rule: The next time you get a bonus or a bump in pay, immediately divert half of it to your investment account. Use the other half to upgrade your life. This keeps you motivated without sabotaging your future.
- Buy the dip (but only if you have to): If you happen to have a windfall of cash during a market correction, put it in. But never hold back "normal" investment capital waiting for a crash that might not come for three years.
- Focus on the "Big Three": Housing, transportation, and food. These make up the bulk of most budgets. If you get these right—by living in a modest home or driving a used car—you can stop worrying about the price of avocados or lattes forever.
Wealth isn't about being the smartest person in the room. It's about being the most disciplined. Most people fail because they get bored or scared. They stop buying when things look grim. But as the just keep buying book proves, the math is on your side if you just stay in the seat. Stop looking for the "perfect" moment. The perfect moment was ten years ago. The second best moment is today.