reading

How Reading More Can Positively Impact Your Finances

September 6, 2018 By Amanda Stewart 1 Comment

Although today is National Read a Book Day, there are many reasons you should consider reading every day. In fact, reading may positively impact your finances. Here’s how.

Read an Hour a Day

A number of studies show reading can positively impact your life. In fact, reading about a subject for just one hour a day will make you a national authority in just five years. Within seven years, you can be one of the best people in your field of study.

Furthermore, scientists have also found that people who read more are more likely to earn more than individuals who don’t. Individuals who read 10 or more books outside of an educational setting were found to make 21% more than those who didn’t read or read much less.

Other Benefits to Consider

If a 21% increase in earnings isn’t enough to make you want to make every day “Read a Book Day,” here are a few more benefits to consider.

1. People who read live longer.

According to a study conducted at Yale, people over 50 who read at least 30 minutes a day lived an average of 23 months longer than individuals who didn’t read or read only magazines. Researchers came to the conclusion that this is because reading books creates cognitive engagement. It can also impact empathy and emotional intelligence, leading to a longer life.

2. Successful people are readers.

As mentioned above, people who read more earn more. However, it has also been proven that readers are also generally successful. This is because many of the most successful people out there are keen on improving themselves and read to do just that.

3. Reading more can lead you to be more open-minded.

A University of Toronto study found people who read short-story fiction have less need for cognitive closure compared to those who preferred nonfiction essays. This means, overall, they were more open-minded than essay-readers. Although nonfiction reading can help you master a subject over time, fiction can help you expand emotionally.

Finance Books to Add to Your Reading List

If financial freedom is your ultimate goal, you can search for personal finance books that may help expand your knowledge and how-to. Here are a few books to consider adding to your reading list.

Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live: This bestseller goes over all of the things you’ve thought to yourself, “why didn’t they teach me this in school?” It is a great gift for a recent high school or college graduate. If you’re looking to expand your personal finance knowledge, it is a great read for you too!
The Millennial Money Fix: What You Need to Know About Budgeting, Debt, and Finding Financial Freedom: This book walks the reader through the steps you need to take to reach financial freedom in today’s world.
The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness: You can’t make a personal finance book list of recommendations without mentioning Dave Ramsey. The Total Money Makeover gives you the tools to pay off your debt and reach financial freedom.
The Spender’s Guide to Debt-Free Living: How a Spending Fast Helped Me Get from Broke to Badass in Record Time: Becoming debt-free is no easy feat, especially if you’re a spender. This book will walk you through how to change your mindset and reach your goals of financial freedom.
The Wisdom of Finance: Discovering Humanity in the World of Risk and Return: If you’re interested in learning how to invest, consider reading The Wisdom of Finance. It gives you a look at how to best manage risk and return in the market.

Readers, have you ever read a book that changed your life for the better? Let us know in the comments!

20 of the Best Personal Finance Books to Add to Your Reading List

July 25, 2017 By Mary Newton 1 Comment

In a world of misguiding money advice, how do you find the right personal finance book for you? Covering everything from saving money to the consistent habits of the wealthy, these personal finance books offer a wealth of tried and true advice. Listed in no particular order, each book offers sound council rooted in experience; no frills, no tricks, just the honest truth about getting your finances in order. So, if you’re looking for a list of the best personal finance books to read in 2017, here you are.

1. The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham

“The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.” If investing is your game, start off with Graham’s essential work. Updated and revised to apply to modern markets, this text offers everything you need to know to make smart investment choices, and thus has earned a spot on our list.

2.The Richest Man in Babylon by George S. Clason

“Acclaimed as a modern-day classic, this celebrated bestseller offers an understanding of—and a solution to—your personal financial problems that will guide you through a lifetime. This is the book that holds the secrets to keeping your money—and making more.” Included for its classing standing, Clason’s parable-style novel is rich with all the right solutions to your financial problems.

3.Debt-Free Forever: Take Control of Your Money and Your Life by Gail Vaz-Oxlade

“Make no mistake: Getting out of debt isn’t easy. But in Debt-Free Forever, Gail gives you a clear strategy and the steps needed to implement it. So if you’re finished with excuses, overdue notices, and maxed-out credit cards, pick up this book, follow Gail’s plan, and start becoming debt-free forever.” In this remarkable book, Vaz-Oxlade makes the path to becoming debt-free look like the yellow brick road: long and difficult, but also clear, straightforward, and definitely possible. We selected Vaz-Oxlade’s book for its unique yet universally applicable problem solving.

4. The Bogleheads’ Guide to Investing by Taylor Larimore, Michael LeBoeuf, and Mel Lindauer, with a foreword by John C. Bogle

“Invest like a Boglehead, and let their grassroots investment wisdom guide you down the path of long-term wealth creation and happiness, without all the worries and fuss of stock pickers and day traders. If you face a financial crisis or problem, or simply want to know what is prudent to do with the money you save, the Bogleheads will have the answers you need to help you gain your financial footing and keep it.” In keeping with John C. Bogle’s investment advice, this witty and clever guide has all you need to know about investment. We chose this guide for its all-around, easy to follow, and thorough information on investing.

5. Pirates of Financial Freedom: A Novel by Joey Fehrman

“Through the financial advice they receive and the other characters they meet along the way, you will learn how to take control of your destiny and start achieving the thriving life of financial success you deserve!” Told through the eyes of fictional pirates, this entertaining read offers essential lessons on the most essential personal finance skills. This is the perfect book for learning those essential healthy financial habits through the experience of relatable characters.

6. The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent by David H. Chilton

“David Chilton simplifies the complex puzzles of personal finance and helps you achieve financial independence. With the help of his fictional barber, Roy, and a large dose of humor, Chilton shows you how to take control of your financial future–slowly, steadily, and with sure success.” See also: The Wealthy Barber Returns. Selected because it is one of the top-rated financial books ever, Chilton’s plan makes it possible to achieve financial independence, no matter your salary.

7. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt

“Through forceful storytelling and wry insight, they show that economics is, at root, the study of incentives—how people get what they want or need, especially when other people want or need the same thing.” While this book does not offer twelve-step plans for financial independence or a six week get-rich-quick program, it is essential in transforming your worldview. Understanding the freakonomics mindset will allow you to make smart and beneficial financial decisions.

8. Your Money: The Missing Manual by J.D. Roth

“Guides readers with practical advice for getting — and keeping — their finances in order, covering all the money-management bases, from saving and spending to getting out of debt to investing, and planning for retirement.” Roth’s sensible advice on money management is important in any financial journey. We chose this book because it offers the most comprehensive and simple guide to an essential aspect of financial health: taking control of your money.

9. Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth by T. Harv Eker

“According to T. Harv Eker, it’s simple. If you think like rich people think and do what rich people do, chances are you’ll get rich too!” Finances start with the person, and Eker’s approach to thinking like a millionaire will get you in top shape to begin your financial journey. We selected Eker’s book for the way it will transform your mindset on wealth.

Interested in learning about Personal Finance? Check out these other great articles:

10. Financial Peace Revisited by Dave Ramsey

“With practical and easy to follow methods and personal anecdotes, Financial Peace is the road map to personal control, financial security, a new, vital family dynamic, and lifetime peace.” A radio host and best-selling author, Dave Ramsey is a giant in the personal finance world. His advice for achieving financial peace comes from real experience grappling with gaining — and losing, and regaining — wealth and financial health. His financial plans are hailed for their honesty and effectiveness, which is why we had to include one of his works on our list. Ramsey’s acclaimed work focuses not only on financial peace, but also on peace in your life.

11. Think and Grow Rich: The Landmark Bestseller by Napoleon Hill

“In the updated version, Arthur R. Pell, Ph.D., a nationally known author, lecturer, and consultant in human resources management and an expert in applying Hill’s thought, deftly interweaves anecdotes of how contemporary millionaires and billionaires, such as Bill Gates, Mary Kay Ash, Dave Thomas, and Sir John Templeton, achieved their wealth.” We included this classic in motivational literature as it offers an updated version of Napoleon Hill’s 1937 work with a modern perspective on success.

12. Effortless Savings: A Money Management Guide to Saving Without Sacrifice by Richard Syrop

“Effortless Savings is the ultimate guide to saving without sacrifice. Perfect for readers of any income level or household size, it contains hundreds of ways to save money that are easy and manageable.” We chose Syrop’s guide to saving money because it offers a wealth of ways to save money without having to make sacrifices.

13. On My Own Two Feet: A Modern Girl’s Guide to Personal Finance by Manisha Thakor and Sharon Kedar

“Succinct, straightforward, and visually appealing “On My Own Two Feet” will redefine “personal finance 101” for women in their 20s and 30s.” If you want a go-to guide for personal finance, look no further. Included because it meets the need of a modern target audience, Thakor and Kedar cover the basics of personal finance in fun and simple way.

14. The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle

“Filled with in-depth insights and practical advice, The Little Book of Common Sense Investing will show you how to incorporate this proven investment strategy into your portfolio. It will also change the very way you think about investing. Successful investing is not easy. (It requires discipline and patience.) But it is simple. For it’s all about common sense.” Bogle’s common sense approach to basic investing from the man himself is sure to offer the best advice out there for those looking to polish their investment game. We chose to include this book for its standing as an essential investment read, as well as for its short and sweet length.

15. Rich Bitch: A Simple 12-Step Plan for Getting Your Financial Life Together… Finally by Nicole Lapin

“In RICH BITCH, money expert and financial journalist Nicole Lapin lays out a 12-Step Plan in which she shares her experiences—mistakes and all—of getting her own finances in order. She talks to you not like a lecturer but as your friend. And even though money is typically an “off-limits” conversation, nothing is off-limits here.” Included for its spunky yet expert perspective, Lapin’s 12-step plan is offered in a fun and funky style, perfect for those seeking a bit of pizzazz in their financial advice.

16. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner

“From tackling taxes to boosting credit scores, Get a Financial Lifecan show those just starting out how to decrease their debt, avoid common money mistakes, and navigate the world of personal finance in today’s ever-changing landscape.” Since Finance 101 is not a class offered in high school, Kobliner’s guide to finances for young people offers the best and most thorough advice for young adults starting out in the scary world of finance. We chose this book because it offers the most comprehensive basic guide to beginning your financial journey.

17. Rich Dad, Poor Dad by Robert T. Kiyosaki

“Personal finance author and lecturer Robert T. Kiyosaki developed his unique economic perspective from two very different influences – his two fathers.” Kiyosaki’s honest observations of his and his friend’s fathers was chosen for its unique perspective on wealth and what it takes to make it financially.

18. I Will Teach You To Be Rich by Ramit Sethi

“A completely practical approach delivered with a nonjudgmental style that makes readers want to do what Sethi says, it is based around the four pillars of personal finance— banking, saving, budgeting, and investing—and the wealth-building ideas of personal entrepreneurship.” Perfect for young adults seeking structure, Sethi’s 6-week financial plan will have you starting on the right foot.

19. Money: Master The Game: 7 Simple Steps to Financial Freedom by Anthony Robbins

“Based on extensive research and one-on-one interviews with more than 50 of the most legendary financial experts in the world – from Carl Icahn and Warren Buffett, to Ray Dalio and Steve Forbes – Tony Robbins has created a simple 7-step blueprint that anyone can use for financial freedom.” Robbins’ guide follows advice of financial greats and was included for its merit as a well-rounded first read for anyone looking to learn the ins and outs of the financial game.

20. The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach

“David Bach gives you a totally realistic system, based on timeless principles, with everything you need to know, including phone numbers and websites, so you can put the secret to becoming an Automatic Millionaire in place from the comfort of your own home.” Centered around an anecdote about an average American couple, Bach’s insights into financial health will change your world. We selected this book for its comprehensive information on how to make modern technology work for you.

Personal finance books offer a wide range of advice. While these twenty personal finance books cover a range of topics and financial situations, one thing remains true: their advice is the best of the best. These authors have proved their worth in the financial game, and now they are passing that wisdom on to readers like you. With all these topics out there, you are sure to find the right one for you! Have you read any great personal finance literature? Let us know in the comments.

Photo: Christopher

Financial Reasons Why You Should Read More

January 18, 2017 By Amanda Stewart 3 Comments

When was the last time you read a book? There is a large population of individuals who never pick up a book after high school. For many that is an absolute mistake. Reading has a number of significant benefits that you could be missing out on. Here are a few financial reasons why you should read more:

Why You Should Read More

Reading can improve many areas of your life. It can increase imagination and even provide some tranquility for people. The action of reading and finishing a book can also provide a great sense of satisfaction. If those reasons alone aren’t enough there are also financial reasons why you should read more:

Reading is Mentally Stimulating

Read more because reading stimulates your mind. It gives your brain a break from the day-to-day hustle-and-bustle that is life and gives it time to imagine things, escape. You can broaden your horizons and expand your mind by picking up a novel for just a half hour each day. Better mental stimulation can also lead to better decisions and could lead to you making a fantastic financial change.

Reading Reduces Stress

For many people reading actually reduces stress. Being stressed can cause some people to spend more money by eating more or spending cash on their stress relief process. Reading can get rid of the need to spend that cash.

Gain Knowledge and Expand Your Vocabulary

Of course you’ll pick up some great vocabulary and gain knowledge if you start reading more. This can affect your finances through whatever job you hold. If your vocabulary starts getting better and you seem more focus you could land a promotion.

Stronger Analytical Skills

Reading also leads to stronger analytical skills. You can use the analytical skills gained by reading more to better you finances. Use your heightened skills to create an affective budget and analyze the stock market. Is there a better reason as to why you should read more?

It’s Free!

Well, yes. There’s one more reason that’s even better than the rest. Reading is free entertainment. Instead of going out to the movies or a restaurant you can stay home and enjoy a good book. You might be thinking, “well, I’ll have to buy a book.” However, you can grab a book for free from your local library. You can also swap books with friends and maybe even start a reading/lending group!

How to Read More

Now that you know some financial reasons why you should read more, you should probably know how to read a bit more. Below are some suggestions from Money Crashers on how to read more. Some of these ways to read more will save you a bit of cash too!

Cancel cable. Get rid of cable TV if you haven’t already! It is an unnecessary cost. Many people have switched to streaming services, like Hulu and Netflix. Not only will getting rid of cable save you money but it will also free up some time to read more.

Get a tablet. If you have a little money to shell out on a tablet, get one! A tablet will makes many people want to read more than a regular paper or hardback book. Also, you can grab a lot of free books on Amazon for your tablet.

Choose good books. This is key to reading more. You won’t want to read more if you can’t get a good book.

Set a time. If you set up a time to read each day and stick to it you’ll be able to read more. For example, if you want to read before dinnertime each day you can set an alarm for 4:30 p.m. to remind you to pause for some reading time.

Read with others. Another great way to read more is to find a group of people to read with. You can start a book group where you all purchase and read the same book at the same time and discuss. You can also start a book lending club. A book lending club will allow for discussion and trading of books between people in the group.

Will you try to read more?

Photo: Jan Murin

Buying Summer Reading Books For Kids On The Cheap

May 28, 2010 By David G. Mitchell 6 Comments

Summer is coming. There is no denying it, at least if you live in the Northern hemisphere. Days are getting longer. Winter clothes are being stored in attics to await the return of cooler nights. Kids are ready for the school year to end. Summer vacation will be upon us in the blink of an eye.

What are your plans for your summer vacation? How will you be keeping your kids busy? Whatever we plan in the summer months, reading is always a big part of our expectation for our kids. Fortunately, they are old enough that their schools give them plenty of reading over the summer but not every school is as demanding.

If your kids have summer reading for school, or if you just want to make sure that they continue to read even though school is out, buying books can be an expensive proposition. Of course, there is always the local library, but sometimes it is nice for kids to own the books that they read, especially kids who like to return to the same titles over and over again. Fortunately, there are a lot of ways that you can add books to a child’s library without breaking the bank in the process.

Visit Yard Sales: The price point for books sold at yard sales is very low. Paperbacks are often sold for a nickel or a dime and hard cover books are not sold for much more than that. Visit yard sales with your kids and tell them that they have a fixed budget for books, and only books. You will be surprised at how many books that you can accumulate over the course of one summer for only a few dollars. At the end of the summer, tell your kids that they will be allowed to sell any books that they have actually read and that they can keep the money that they get. It will help to encourage them to read.

Visit Used Book Stores: Most cities of any size have used book stores. Often, they will have great deals on kids books because the resale market for recent books is usually poor. As an adult, you may also find a few inexpensive literary treasures as well. I recall buying most of my books at the now defunct Avenue Victor Hugo Book Shop in Boston many years ago and rarely had to spend more than a dollar per title. I still have many of those books today.

Visit Book Stores that are Going Out of Business: It is a sad reality that in this economy, many book stores are failing. Take advantage of those failures to get deeply discounted books, especially as the date for the store closing gets closer.

Visit a National Chain Book Store: Many national chain book stores offer reading incentive programs. Borders, for example, will give a book to any child under age 12 after the child reads ten books this summer. For more information check the Borders website. Barnes and Noble usually runs a similar program each summer as well.

Form a Book Club: Organize a book club for your child and their peers. Each week, have each member bring two books to trade and then have each child describe each book before the trading begins. The kids will enjoy the event and the parents will benefit from the ready source of new reading material.

Don’t forget that a child whose parents read is also more likely to be a reader, so make sure that you read as well! What books are on your reading list for this summer? What books would you like to see your children read?

The Best Voyeuristic Financial Books

June 6, 2008 By Jennifer Derrick 4 Comments

A few weeks ago I wrote about books that are valuable for every level of financial knowledge. Almost all of those books were “how-to” books or books about developing and implementing investment strategies. This week I’m going to recommend a different type of financial book. These are the books that don’t teach you how to manage your finances in a step by step manner, rather they present the stories, examples, and cautionary tales of actual people. Some of these books discuss the financial situations of individuals, others look at ethnic/demographic groups, nations, or civilization as a whole and ask questions such as, “How did we get into this mess?” and, “How do we get out of it?”

Books with a voyeuristic element are often more readable than how-to books because, honestly, who doesn’t like reading about the trials, woes, and (hopefully) eventual successes of other people? We’re a voyeuristic bunch who like to know what others are doing. Look at the popularity of reality TV. It’s no different for finance. We like to compare ourselves to others and either feel superior to their situation or be inspired to do better. These books are also instructive because they expose us to people and situations that we would not normally encounter in our daily lives. We get to see that there are lifestyles, choices, and financial considerations other than those that we personally experience.

These types of books are good for summer reading because they read more like a traditional story. You can just sit back and read the tale without worrying about remembering certain points or doing “homework.” If you’re looking for some financial books with a human element to take to the beach with you this summer, here are my suggestions.

1. Maxed Out: Hard Times in the Age of Easy Credit by James Scurlock. This book presents several cautionary tales about what happens when the use, abuse, regulation and issuance of credit goes awry. It’s a sobering look at just how shifty credit markets can be.

2. Green With Envy: A Whole New Way to Look at Financial (Un)Happiness by Shira Boss. This book is truly voyeuristic, with the author looking behind the scenes at the lifestyles of her supposedly “wealthy” neighbors to discover that they really aren’t as well off as they would like the public to believe. It’s a case study on the idea that “the Joneses” that we are trying to keep up with are an illusion and, thus, any attempt to keep up with them is misguided.

3. The Overspent American: Why We Want What We Don’t Need by Juliet B. Schor. This classic looks at the disconnect between our consumption and our satisfaction. Why are we killing ourselves with work and going deep into debt for “stuff” that doesn’t make us any happier? She looks at a variety of causes for our overspending and, unlike many books, doesn’t lay the blame at any one door, rather the blame is shared. She also provides hope for change in the form of “down-shifters;” people who have opted to slow down their spending, work, and consumption in favor of a better life.

4. Affluenza: The All-Consuming Epidemic by John de Graaf. This book, based on two PBS documentaries, looks at excessive consumption as a disease that has symptoms such as anxiety, debt, waste, and stress. The book examines the effect of the disease on individuals and societies and also examines some of the potential “cures” for affluenza. Profiles of people with this “disease” make this an entertaining read.

5. Not Buying It: My Year Without Shopping by Judith Levine. The author embarks on a one year journey to buy nothing but necessities. She looks at the challenges and societal stigmas we face when we opt out of the consumer lifestyle. The most entertaining part, to me, is her constant struggles and rationalizations to determine what constitutes a “necessity.”

6. A Year Without “Made in China”: One Family’s True Life Adventure in the Global Economy by Sara Bongiorni. This books is a bit similar to “Not Buying It,” except this author goes one step further and attempts to avoid buying anything made in China. Of course this a serious challenge because so many of our goods come from China. She shies away from controversy by refusing to engage in debate about trade policies and politics, but it is a fun and humorous read about how one family tried to make a difference.

7. Money, A Memoir: Women, Emotions, and Cash by Liz Perle. This book looks at the consequences that arise when a woman leaves the finances up to her husband. When her husband leaves her, the author is faced with the fact that, despite being intelligent and educated, she knows next to nothing about spending, saving, investing or basic money management. How and what she learns creates an inspiring tale.

8. Give It Up!: My Year of Learning to Live Better with Less by Mary Carlomagno. Unlike the author of “Not Buying It,” the author of “Give It Up,” only gave up things for one month. Each month she gave up a different item: cell phone one month, shopping the next, dining out the next month, and so on. She didn’t suffer quite the deprivation and societal consequences that are found in books where the authors give up things for longer periods, but she did make herself more aware of her spending and consumptive patterns. It’s an entertaining read and not a bad plan for those looking to try living with less.

9. Save Karyn: One Shopaholic’s Journey to Debt and Back by Karyn Bosnak. The author, in her late twenties and with a decent job, nonetheless manages to accumulate $20,000 worth of debt in one year (mostly by trying to impress others and by being a slave to labels). When she loses her job, she decides to dig herself out of debt rather than declare bankruptcy. Not everyone will agree with her strategy of asking the public for donations, but it is interesting to see how such a shallow girl turns into a fairly resourceful person when the need arises. This is not serious reading — it’s a bit fluffy — but it’s not a bad tale.

10. The Two-Income Trap by Elizabeth Warren. The author argues that bankruptcies are soaring, not due to irresponsibility, but because two incomes are no longer enough to make it in the world today. Whether you agree with her or not, the book does point out some problems in society that could be addressed to keep people from falling so far behind that there is no way out. The profiles of families in crisis provide a sobering portrait of what some people are up against.

11. Strapped: Why America’s 20- and 30-Somethings Can’t Get Ahead by Tamara Draut. This book examines why those under thirty-five are struggling to make it when compared to their parents’ generation. The author dismisses over consumption as the problem and instead focuses on high student loan debt, skyrocketing costs, low paying first jobs, and jobs with no benefits. Her conclusions are valid, but her refusal to acknowledge that high consumption is a problem for at least some irks me. If you’re under thirty-five, you might recognize yourself in some of the stories presented here.

12. Luxury Fever: Why Money Fails to Satisfy In An Era of Excess by Robert H. Frank. This book is most similar to “The Overspent American” in that it looks at why consumption is not making us happy. However, this book looks specifically at luxury items and what triggers our desire to own them. He argues that our overspending is triggered directly by the spending patterns of those around us (it’s interesting to see just what those patterns are) and then presents several ways we could change the consumption patterns of our whole society to benefit everyone.

13. Nickel and Dimed: On (Not) Getting By in America by Barbara Ehrenreich. The author gave up her home, car and trappings of middle class life and sought out low paying jobs to prove how difficult it is to make it when all you can get are low paying jobs. She examines how difficult it is to get and keep a job when you have kids, no transportation, and other life issues. The book is at times a bit shrill and political, but overall it’s an interesting look into a side of life most of us try to ignore.

14. Choosing Simplicity: Real People Finding Peace and Fulfillment in a Complex World
by Linda Breen Pierce. This book is actually the result of a “Simplicity Study” conducted by the author. She has compiled many of the stories of her respondents and illustrated why they opted off the work, spend, work some more treadmill. She focuses on a variety of groups, from the young to the retired, those with kids and those without, the wealthy and the not so wealthy. She spends a lot of time on the positive changes these people noticed in their lives, but she also examines some of the negative consequences of opting out of the expected American lifestyle.

15. House Lust: America’s Obsession With Our Homes by Daniel McGinn. If you’ve ever surfed real estate websites “just to see what’s out there” you may have house lust. This book looks at American’s obsession with our homes; their value, appearance, square footage, and investment potential. It’s a fascinating look at how houses have evolved from simple “homes” to status symbols, markers of our worth as people, and showplaces that tell others about us.

16. Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich by Robert Frank. This is a fun romp through the world of the ultra-rich and the unique “problems” and responsibilities that they face. The author also examines the good that some of the ultra-rich do in the world, but mostly he amuses himself with the excesses of his subjects.

Financial books don’t have to be dry and boring. Those that give us a window into the lives of others and tackle societal questions can be just as valuable as and, perhaps, more entertaining than those that offer step by step instruction. Exposure to the worlds of others is both entertaining and instructive.

Image courtesy of The Department

Books For Every Level of Financial Acumen

May 16, 2008 By Jennifer Derrick 10 Comments

I’m a huge fan of reading. I believe that reading, both fiction and non-fiction, is a great way to learn new things and be exposed to more than you typically see in your daily life. If you want to learn something new, like personal finance, you can’t beat a good book. You can go at your own pace and learn on your own time, unlike in a classroom where you’re on a schedule and must go at the teacher’s pace. If something confuses you while you’re reading, you can stop, look it up or ask questions and come back to it later. Most books point you toward additional resources in the Appendix, leading you to learn more new things. And the best part is, you can get more books than you’ll ever read through your library system all for free.

With that in mind, I’ve put together my list of the best books for every level of financial knowledge. None of these are too obscure or old, so your local or college library is likely to have them or be able to get them through interlibrary loan. Failing that, you can probably find some of them at used bookstores. They’re also all available through Amazon.com, and some used copies are available from other sellers. There are Amazon links below so you can get a sense of the prices for each one.

Financial Novice

If you’re just starting to learn about personal finance, here are some titles to get you started.

The Total Money Makeover: A Proven Plan for Financial Fitness, by Dave Ramsey. I don’t always agree 100% with what Dave teaches, but there’s no denying that he is a great motivator and this book will get you fired up about getting out of debt and establishing a financial plan.

You’re Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead, by Larry Winget. Larry is very no nonsense and a master of tough love. This book is a basic introduction to getting out of debt, but it will tear down every excuse you can think of and show you that it’s your choices that are making you broke. Warning: He is harsh (but funny), so if you get upset about that, maybe you should pass on this one.

Personal Finance For Dummies: By Eric Tyson. Tackles the basics of finance including investing, taxes and insurance. If you know little or nothing about finance, this book is a good crash course.

The Road to Wealth: A Comprehensive Guide to Your Money — Everything You Need to Know in Good and Bad Times, by Suze Orman. Like Dave Ramsey, Suze Orman teaches basic finance to the masses. This book is one of her most comprehensive, covering stocks, retirement planning, insurance, home ownership and wills and trusts. Another good resource if you want to know a little about a lot of topics.

The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich, by David Bach. Another “star” of personal finance, Bach advocates automating as much of your personal finance tasks like saving, investing and bill paying as you can to keep you on track. If it’s out of sight out of mind, you’re more likely to be successful, he argues.

Standard & Poor’s Guide to Understanding Personal Finance: By Virginia B. Morris. This is another good overview of a lot of financial topics. It’s short and sweet and it’s small size makes it easy to carry.

Maxed Out: Hard Times in the Age of Easy Credit by James D. Scurlock. This is the companion book to the DVD of the same name. While not “instructional” in a step by step sense of the word, this book does present some cautionary tales about what happens when finances and the lending industry go awry.

Financial Guru in the Making

Okay, so you know how to save money, make a budget and get out of debt. Now it’s time to move on to weightier topics. What do you read next?

What’s Your Number? 6 Steps to a Secure Retirement: By Kathryn Alexander. This book goes beyond simply telling you how to save for retirement to get you to calculate exactly how much you’ll need based on how you want to live in retirement, your current assets, and your anticipated expenses. More helpful than the standard “save for retirement” speeches you find in other books.

The Wall Street Journal Guide to Understanding Money and Investing: By Kenneth M. Morris. When you’re ready to learn about investing, how to read the financial pages and what a lot of the financial terms you see on TV mean, this book is a quick and simple reference to get you started.

Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence, by Joe Dominguez and Vicki Robin. This classic teaches you how to live on far less than you make and invest wisely with an eye to achieving financial independence long before traditional retirement age.

The Motley Fool Investment Guide: How The Fool Beats Wall Streets Wise Men And How You Can Too, by David Gardner and Tom Gardner. The Fools run a great website and their advice is easy to understand, but is really geared to those who already have a basic understanding of finance and investing. This books takes you deeper into investing and gets you ready to start making some of your own investment decisions.

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko. This book is a classic of the personal finance cannon. It reveals the qualities shared by many members of the “millionaires club” and discusses how, by exhibiting these qualities yourself, you can join the club. You might be surprised at what the average millionaire is like.

Ernst and Young’s Personal Financial Planning Guide: Covering just about every life stage and eventuality in your financial life, this book provides a solid overview of topics such as elder care, funeral costs, college planning, estate planning and insurance.

Jim Cramer’s Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer), by James J. Cramer. If you like his television show and his loud, over the top style, you’ll like this book which shows you how to deal with personal finance at every stage of your life.

Finance Geek

You know a lot about finance and are looking to tweak your strategies for maximum gain, or you’re looking to take on some more obscure topics. Here are some books that go well beyond the basics.

The Essays of Warren Buffett: Lessons for Corporate America, Second Edition,
by Warren E. Buffett and Lawrence A. Cunningham. This book can be dense, but if you’re going to learn you might as well learn from the best. Rather than discussing specific stocks, Buffet instead focuses on his overall investment philosophy.

Bogle on Mutual Funds: New Perspectives for the Intelligent Investor, by John Bogle. The founder of Vanguard tells you about the different kinds of mutual funds as well as how to select good mutual funds.

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition, by Burton G. Malkiel. This book evaluates all kinds of investment strategies and vehicles including stocks, bonds, commodities, and real estate.

The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities, by Bernard Baumohl. If you want to know how to read economic indicators and integrate them into your investment strategy, this is a great place to start. It helps you to make more sense of the financial pages and CNBC when you know how to decode financial indicators.

Retirement Income Redesigned: Master Plans for Distribution: An Adviser’s Guide for Funding Boomers’ Best Years, by Harold Evensky and Deena B Katz. Many books tell you how to save for retirement, but few address how to actually distribute and use that money once you retire and need the money. Particularly recommended for those nearing retirement.

The Misbehavior of Markets: A Fractal View of Risk, Ruin & Reward, by Benoit Mandelbrot. This book is not about investing in the how-to sense. Rather, it’s a look at market behavior. Not for the faint of heart as some of his conclusions are a bit scary and the higher math involved can be intimidating.

Mastering the Art of Asset Allocation: By David M. Darst. When your fund advisor says, “asset allocation,” do your eyes glaze over? If you want to know more about how investors and fund managers choose assets and create portfolios that work in a variety of economic conditions, then this is the book for you.

Obviously there are many more great books than these. I encourage you to spend some time trawling your local library or bookstore and simply see what appeals to you. Even if you think a book is too basic or advanced for you, you might be surprised to learn something new anyway. Happy reading!

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