Money-conscious readers of all generations should brush up on their personal finance knowledge by adding a few books on the subject to their summer reading list.
Given that only 24% of millennials are able to answer four or five questions correctly on the five-question financial literacy quiz, they should especially put in the extra effort to pick up
Here are eight classic personal finance books that are still worth reading.
1. Rich dad, poor dad
In 1999, personal finance author Robert Kiyosaki self-published “Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!”, which eventually became a best-seller. seller of the New York Times.
The central premise of his book is the comparison between his biological father, a hardworking but financially challenged individual, and the father of his best friend, a wealthy man with a string of savvy investments.
One of the main lessons of “Rich Dad, Poor Dad” is the importance of developing entrepreneurship and financial skills to become financially independent.
To achieve great wealth, Robert argues, you should pursue passive and portfolio income instead of a traditional salary.
2. You won it, don’t lose it
Before her long string of bestsellers, such as “The Money Book for the Young, Fabulous & Broke”, Suze Orman started it all with “You’ve Earned It, Don’t Lose It: Mistakes You Can’t Afford to Make When You Retire,” first published in 1995.
The main appeal of Orman’s first book is the simplicity of its eight-step process for a successful retirement.
For example, in step two, Orman explains how to plan for early retirement while avoiding penalties for withdrawals. For each of its steps, it provides specific instructions and resources for more information.
(See also: Suze Orman’s Top 5 Pieces of Financial Wisdom)
3. The Rich Barber
Published in 1989, “The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent” provides down-to-earth financial planning with a large dose of humor via Roy the Barber, a fictional character created by book author David Chilton .
“The Wealthy Barber” teaches you good personal financial habits, like paying off credit card balances every month and building an emergency fund with unexpected bargains, that never go out of style.
David insists that you should be wary of get-rich-quick schemes and instead focus on long-term wealth-building strategies.
4. Think and grow rich
Known as the “grandfather of all motivational literature”, Napoleon Hill was trying to figure out “What makes a winner?” back in 1937.
He found the answer by interviewing a long list of well-known successful and wealthy individuals, such as Henry Ford, Thomas Edison, John D. Rockefeller and Charles M. Schwab, and putting them together in “Think and Grow Rich”.
Based on his research, Napoleon developed the timeless Thirteen Steps to Wealth philosophy on individual achievement.
“You have to think to become rich” doubles as a great motivational book for budding entrepreneurs. “You are the master of your destiny. You can influence, direct and control your own environment. You can make your life whatever you want it to be,” Napoleon encourages.
5. The richest man in Babylon
Now here’s a blast from the past: George Clason’s 1926 personal finance classic, “The Richest Man in Babylon,” uses parables set in ancient Babylon to teach modern investors a thing or two about their finances.
Many of George’s lessons have been adapted by current financial advisors and investors.
For example, “Babylon’s Richest Man” “Start Your Fattening Bag” was adapted for “pay yourself first” by Warren Buffett. The Oracle of Omaha and George Clason agree that you don’t save what’s left after you spend, you spend what’s left after you save.
6. How to make friends and influence people
Since 1936, the Dale Carnegie classic has been passed down from generation to generation. My wife received this book from one of her architecture mentors, as did I from one of my college business professors.
More and more employers are looking not only for excellent academic or professional credentials, but also for good personality traits. Professionalism, high energy and confidence are the three personal traits most sought after by employers.
“How to Make Friends and Influence People” provides you with helpful techniques for developing these and other personal traits that make you more attractive to potential employers.
7. The smart investor
Warren Buffett is very public about his admiration for “The Intelligent Investor: The Definitive Book on Value Investing” by Benjamin Graham. Since its original publication in 1949, “The Intelligent Investor” has been a bible for value investors, who believe that “Mr. Market is your servant, not your master.”
Know that Benjamin’s classic does not provide techniques for picking “hot stocks”, but teaches you how to use discipline, research and analytical ability to make wise investments in bargains relative to current value. actives. This is essential reading for any investor, regardless of their level of expertise. You can take Mr. Buffett at his word – he says it’s “by far the best book on investing ever written.”
8. Beat the street
There are very few investors who can give Warren Buffett a hard time. One of them is legendary ex-manager of Fidelity’s Magellan fund, Peter Lynch.
(See also: 5 investors with better returns than Warren Buffett)
What makes Peter Lynch an excellent investor is not only his ability to manage a large, actively managed fund, but also his talent for providing excellent investment advice in simple terms.
In 1993’s “Beating The Street”, Peter penned some of the most famous investment mantras, including “Never invest in an idea you can’t illustrate with a pencil” and “Gentlemen who prefer bonds don’t don’t know what they’re missing”. “