This is a list of books that I found useful on my personal finance journey, after reading the Richest Man in Babylon I quickly realised my real problem was that I didnt know what I didnt know.
In my opinion the key to making better financial decisions is financial education and these books are a great place to start.
I have linked the books below, they are not affiliate links and I do not get paid for recommending them.
These books have enlightened my thinking and broadened my understanding and to make a quick buck off shilling them would, I feel, cheapen them.
These are my personal recommendations and they will grow and change over time.
Richest man in Babylon – George S Clason
This book is for total novices, it is a set of parables that outline money lessons with practical advice that can be applied to everyday life immediately. If you already know the fundamentals of finance you’re wasting your time with this one but if you’re completely new its a great place the start.
The downside is that its wrote in an old English type style with “Thees and Thous” but if you can look past that then the book is brilliant. I have it on Audible and listen to it around twice a year. At the time of writing it is also free on YouTube.
How to Own the World – Andrew Craig
How to Own the world is a book about investing in the global economy in order to reduce risk and increase gains. But its more than that, its an education book that breaks down finances and investing to a level where Joe Bloggs can read, understand, and ultimately, benefit from the information provided.
I love this book, It is well worth a read, there’s not too much else to say.
If you only get one book in this list make sure it is this one!
Barefoot Investor – Scott Pape
The Barefoot Investor is very Australia specific however don’t let that put you off. Whilst he gives advice on Australian bank accounts and pensions (Called Superanuation) which can be disregarded its his mentality and motivation that really got me! If you’re feeling down and defeated by debt, if you feel you’re finances aren’t going anywhere, if you need something to set you on the right path this is a great book.
The book is easy to follow and tackles topics like debt, credit cards, spending addiction, allocation of finances. It is great for beginners and is one that I frequently listen to when I need a bit of pep.
It is no word of a lie that this book has made me about £1250 last year when I followed his advice and got prepared for my annual review. The book cost me £8 from Audible and I listened to it on the commute and it got me a return of %15625. (Spent £8, got £1250 back).
Trade your way to Financial Freedom – Van K Tharp
Trade your way to financial freedom is fantastic for those who want a more active investment strategy, it covers the psychology of investing, risk, position sizing and stock analysis. If you like the idea of trading stocks, being able to read financial reports and technical analysis then I would suggest reading this book.
It does require you have about £50,000 to start which the author remarks as “Not being that much”. But learning to trade with 50k is a lot lower bar than living off a dividend income.
This book is not for everyone, whilst I enjoyed the psychology and risk allocation when he started discussing trading for a living I knew it wasnt for me.