Top Personal Finance Books

Posted by admin on January 19, 2009 in Resources

I have a rather static collection of personal finance books. I am a big believer of quality over quantity (and for cost savings, I borrow a lot of other books from the library). Many of the books also have so much good information that it helps to pick it up from time to time and re-read passages to absorb some nugget of financial wisdom I did not get the first time around.

If you are building a personal finance library, I suggest the following as building blocks (all the links are not affiliate links):

The Millionaire Next Door by Stanley and Danko: A book anchored in statistical analysis on how the millions got to be millions. The lessons are not earth-shattering but, if nothing else, a re-affirmation of old world values: hard-work, frugality and modesty are keys to financial independence. A book I tend to pick up every other months and re-read passages.
Get Smarter by Schulich and DeCloet: Schulich is a self-made billionaire (mostly in junior mining companies) who shares his money, life and love lessons in small bite sized chapters. A very good thought process book about being a good person, good investor and good entrepreneur.
Stocks for the Long Run by Siegel: The bible for stock investing setting out why investing in stocks over the long run will protect your savings and more. A great guide for exploring the various sub-sets of stock investing (dividend investing, global investing, exchange traded funds etc.). If you are interested in stock investing, a definite read.
The 5 Rules for Successful Stock Investing by Dorsey: Another in the fine series of Morningstar publications, this is an extremely thorough guide on how to read financial statements with industry specific metrics to look out for. A word of warning, it is a little technical at times
The Art of the Start by Kawasaki: My newest entry. Not a personal finance book per se but have you ever wondered how to turn an idea into a business including getting customers and obtaining financing? Kawasaki, a venture capitalist and former Apple alumnus, gives a refreshing look at starting a business grounded in some real experience rather than abstract MBA-isms.

You will notice from the above list that these are all thought-process books not product books. Even the stock books are about how to assess stocks not which ones to buy. As I have reiterate in this blog, product comes and goes. Its a thought process that will carry you through long term.

Any books you consider a building block of a personal finance library?

1 Comment on Top Personal Finance Books

By Riscario Insider on January 22, 2009 at 12:21 am

My library is deficient

I’m only familiar with The Millionaire Next Door (and also like The Millionaire Mind). An advisor highly recommended Get Smarter and it’s on my to-get-from-the-library-someday list.

I keep returning to the audio version of The E-Myth by Michael Gerber. He’s an excellent narrator which makes listening a pleasure. More importantly, I like being reminded to make whatever you do scalable, repeatable and consistent. If what you do is expert-dependent, you’re stuck in a j-o-b. There’s a sequel (E-Myth Mastery perhaps) which identifies flaws in the original book, which was too focused on designing and implementing systems. Both books expand your thinking, which helps in many aspects of life.