Let’s be honest. I don’t read books a lot, but every time I start reading one, it gives me a boost of motivation that lasts for a few months. I just thought I share my favorite personal finance books that I think everyone should read.
“Rich Dad, Poor Dad”
(2009) by Robert Kiyosaki
It was probably the first finance book I read and I must say it has changed my view of money and finances in general. It is really eye-opening and very easy to read and understand. If you have not read this then I recommend you to get this book as soon as possible.
Rich Dad, Poor Dad certainly ranks as one of the all time classics in personal finance books. Rather than focus on concrete steps for what people can do to fix their financial life, the book presents an alternative mindset about money. According to Kiyosaki, the rich teach their children a fundamentally different view of the financial world.
For example, the book points out that working hard and even earning a high income is not enough to ensure financial success. Rather, the book emphasizes that the rich work smart and spend more intelligently. Indeed, a person with a $100,000 income and $110,000 in expenses will end the year poorer while a person with a $30,000 income and $20,000 in expenses ends the year wealthier.
“Rich Dad, Poor Dad” is a must-read for those looking to change their attitude about money and wealth. You can read all the practical books with sound financial advice, but if you lack the mindset to truly build wealth, it will be difficult to achieve financial success. (We provide some classic and lesser-known titles to add to your collection.
“How I invest in equities”
(2017) by Seppo Saario
This book I got my first contact with technical analysis where he demonstrated a very simple and robust moving average crossover strategy. There’s obviously more to technical analysis but this book covers some of the basics.
This book by the famous Finnish investor and to my knowledge is published in Finnish and Estonian only. Seppo Saario is a highly experienced investor and in his book, he describes his approach to investing in stocks. He starts off with general statistics about stocks being the best long-term investment. He shares personal experience and knowledge on how to get first exposure in the markets; when to buy or sell; some very interesting historical data about investments; how to manage risks etc. Saario writes about what to look for in a company to get the best value, how to avoid mistakes, best practices, and more.
“The Intelligent Investor”
(1949)by Benjamin Graham
The Intelligent Investor is a must-read for any aspiring investor. This book covers pretty much everything related to investing with its over 500 pages of valuable information.
The Intelligent Investor is the grandfather of investment strategy books. Author Benjamin Graham is often regarded as one of the fathers of the value investing school. The book stresses the importance of fundamental analysis and truly understanding your investments. By learning to analyze potential investments in depth, investors can learn how to spot underpriced stocks backed by robust companies.
The central tenet of the book is that a scientific approach should be used when directing your investments. Reading this book you will learn to keep your emotions out of your investments and develop a skeptical stance toward anything resembling the type of Wall Street hype that so often gets the average investor into trouble.
“The Little Book of Common Sense Investing”
(2007) by John.C.Bogle
This book’s main topic is investing long term in mutual funds. It covers this topic entirely. This book was really easy to read and understand and I totally recommend it.
The Little Book of Common Sense Investing is the classic guide to getting smart about the market. Legendary mutual fund pioneer John C. Bogle reveals his key to getting more out of investing: low-cost index funds. Bogle describes the simplest and most effective investment strategy for building wealth over the long term: buy and hold, at very low cost, a mutual fund that tracks a broad stock market Index such as the S&P 500.
While the stock market has tumbled and then soared since the first edition of Little Book of Common Sense was published in April 2007, Bogle’s investment principles have endured and served investors well. This tenth-anniversary edition includes updated data and new information but maintains the same long-term perspective as in its predecessor.
I hope you found this personal finance books everyone should read post interesting and if you have any personal finance book recommendations then please let me know and comment.
You can read my latest net worth update here.