What one Book to read about personal finance?

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scooter101
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What one Book to read about personal finance?

Post by scooter101 »

I am trying to get my daughter and son-in-law to understand the importance of investing early, what one book could I buy for them to help them understand, something that a beginner could grasp and understand?
mega317
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Re: What one Book to read about personal finance?

Post by mega317 »

I certainly haven’t read them all but I liked automatic millionaire. Quick read, focuses on savings which is IMO much more important to learn, internalize, and practice before worrying about investing.

Also I don’t really believe you can “get someone” to do much of anything unless they already have a seed of wanting it. I mean a book is a several hour commitment. I certainly don’t have several hours to give my parents for something that doesn’t interest me these days.
Last edited by mega317 on Thu Sep 17, 2020 10:59 am, edited 1 time in total.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
Vanguard Fan 1367
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Re: What one Book to read about personal finance?

Post by Vanguard Fan 1367 »

I like John Bogle's The Little Book of Common Sense Investing
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."
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Wiggums
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Re: What one Book to read about personal finance?

Post by Wiggums »

https://www.etf.com/docs/IfYouCan.pdf

This is a quick read to determine if they are interesting in learning more
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CABob
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Re: What one Book to read about personal finance?

Post by CABob »

My personal favorite for a beginner is Personal Finance for Dummies by Eric Tyson.
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jason2459
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Re: What one Book to read about personal finance?

Post by jason2459 »

If you can. https://www.google.com/url?sa=t&source= ... -SB3S580I5

Otherwise most will rather watch a video like this
https://youtu.be/Subw82ohjn0
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jason2459
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Re: What one Book to read about personal finance?

Post by jason2459 »

Vanguard Fan 1367 wrote: Thu Sep 17, 2020 10:57 am I like John Bogle's The Little Book of Common Sense Investing
For book I like this one to start with or one of Taylor's Bogleheads guides.
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Wiggums
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Re: What one Book to read about personal finance?

Post by Wiggums »

https://www.amazon.com/Bogleheads-Guide ... 1119487331

This is another great book which has more detail than the Bernstein IF You Can book which was meant for a younger audience.
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marti038
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Re: What one Book to read about personal finance?

Post by marti038 »

If debt is an issue, I always recommend Dave Ramsey's Total Money Makeover.

For saving/investing, many of the books mentioned above are great. I've read automatic millionaire and the Little Book of Common Sense investing and they're both good. Millionaire next door is a good one too even though it's probably a little more about psychology than investing.
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Re: What one Book to read about personal finance?

Post by Havoner »

I would recommend Dave Ramsey’s Total Money Makeover as a comprehensive beginners guide or money 101. It doesn’t just focus on investing but also other important things like budgeting paying off debt, investing, insurance and many other useful money topics. Common sense investing is a great read but unless your children really like a very in depth approach I wouldn’t recommend to them as a first book.
Last edited by Havoner on Thu Sep 17, 2020 12:16 pm, edited 1 time in total.
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Re: What one Book to read about personal finance?

Post by Robot Monster »

scooter101 wrote: Thu Sep 17, 2020 10:46 am I am trying to get my daughter and son-in-law to understand the importance of investing early, what one book could I buy for them to help them understand, something that a beginner could grasp and understand?
If you just want to help them "understand the importance of investing early," just tell them that $10K invested (100% US stocks) in 1972 would have turned into $1,286,111 as of last month.
Source

However, if that 10K was invested ten years later in 1982, it would only have yielded $639,094.
Source
"Happiness comes from being connected in the right ways to: other people, your work, something larger than yourself."
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jason2459
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Re: What one Book to read about personal finance?

Post by jason2459 »

Wiggums wrote: Thu Sep 17, 2020 11:04 am https://www.amazon.com/Bogleheads-Guide ... 1119487331

This is another great book which has more detail than the Bernstein IF You Can book which was meant for a younger audience.
Suggestions seem to be for a younger audience here but I may be assuming to much by the key words investing early keywords in the first post. Why I would recommend the quick read and a video to start.
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Re: What one Book to read about personal finance?

Post by livesoft »

Lots of investing books, but not personal finance books have been mentioned. I think a big tome which can be used a reference and read "just in time" when needed might be better:
Jane Bryant Quinn: Making the Most of Your Money Now

A problem is that if it cannot be seen and used on a smart phone, then it might as well not exist.

Another book about money:

Jonathan Clements How to Think About Money

And finally, something that the wealthy probably do: I told my son if he contributed the maximum possible from his paycheck to his 403(b) and Roth IRA, that I would reimburse him 100% for 2020. Free money almost always works to inspire some people.
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csei21
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Re: What one Book to read about personal finance?

Post by csei21 »

I haven't read them all yet, but I Will Teach You to Be Rich by Rami Sethi is easy to follow and targeted at a younger audience (20s and 30s)

https://www.amazon.com/Will-Teach-You-R ... B07GNXPP4P

If debt is an issue, I agree Dave Ramsey is a good choice, but to get started on investing I would go with one of the other suggestions.
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Re: What one Book to read about personal finance?

Post by PhoebeCoco »

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Re: What one Book to read about personal finance?

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (personal finance book).
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Re: What one Book to read about personal finance?

Post by Ben Mathew »

That Thing Rich People Do, by Kaye Thomas, founder of Fairmark.

A very good, concise introduction.
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Re: What one Book to read about personal finance?

Post by bltn »

livesoft wrote: Thu Sep 17, 2020 12:46 pm Lots of investing books, but not personal finance books have been mentioned. I think a big tome which can be used a reference and read "just in time" when needed might be better:
Jane Bryant Quinn: Making the Most of Your Money Now

A problem is that if it cannot be seen and used on a smart phone, then it might as well not exist.

Another book about money:

Jonathan Clements How to Think About Money

And finally, something that the wealthy probably do: I told my son if he contributed the maximum possible from his paycheck to his 403(b) and Roth IRA, that I would reimburse him 100% for 2020. Free money almost always works to inspire some people.
I think that matching you children s contribution to a retirement plan might be a good incentive for them practicing this form of saving. For the last few years I ve been matching my children s contributions to their Roth IRA s. This has encouraged them to make these contributions, even when money was tight.
For millennial aged children, William Bernstein s short online book If You Can, How Millennials Get Rich Slowly is an excellent introductory overview for new young investors. And a simple introduction to the concept of living below ones means is the classic that was one of my first reads regarding personal finances, The Richest Man In Babylon. This book is still in publication about 95 years after it was first published. With good reason.
Both of these are quick reads.
Last edited by bltn on Thu Sep 17, 2020 4:47 pm, edited 1 time in total.
Tattarrattat
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Re: What one Book to read about personal finance?

Post by Tattarrattat »

Second vote for Personal Finance for Dummies. I have purchased and gifted to family members who needed orienting to the basics.
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Re: What one Book to read about personal finance?

Post by DoTheMath »

I thought JL Collins "The Simple Path to Wealth" was an easy, accessible read which gives people a good foundation on saving and investing. That is the one I would recommend if someone asked me for a book which was not too technical nor too dumbed down.
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Re: What one Book to read about personal finance?

Post by MikeG62 »

scooter101 wrote: Thu Sep 17, 2020 10:46 am I am trying to get my daughter and son-in-law to understand the importance of investing early, what one book could I buy for them to help them understand, something that a beginner could grasp and understand?
I've read several dozen books on investing. Probably the best and easiest to understand from a newbie's perspective is Larry Swedroe's, Wise Investing Made Simple.

I've bought and given Wise Investing Made Simple to a number of close relatives. Probably the best single book if I had to recommend one for a young or novice investor.
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toocold
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Re: What one Book to read about personal finance?

Post by toocold »

Millionaire Next Door. If you can convince your kids that being rich is different than looking rich, it will go a long way to prepare them for the future.
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Re: What one Book to read about personal finance?

Post by maj »

The Only Investment Guide You will Ever Need
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Re: What one Book to read about personal finance?

Post by snshew12 »

Dave Ramsey TMMO to develop a strong allergen to debt...then JL Collins "A Simple Path to Wealth" to learn about the importance of simplicity (VTSAX early and often)....and to develop the ability to cut out the noise.
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Re: What one Book to read about personal finance?

Post by JupiterJones »

CABob wrote: Thu Sep 17, 2020 11:01 am My personal favorite for a beginner is Personal Finance for Dummies by Eric Tyson.
This is the correct answer, IMHO. There are lots of good personal finance books, but I had to pick only one, this would be it.

Engagingly and clearly written, covers most of the bases, and is Boglehead-y. Highly recommended.
Stay on target...
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Re: What one Book to read about personal finance?

Post by arcticpineapplecorp. »

show them this:

Image

http://www.darwinsfinance.com/start-inv ... y-amazing/

then if they think "wow", show them how to invest.

finally, they've got to understand the money has to sit there to get the compounding returns. They don't need to do anything except keep adding throughout their life and not worry about when the market falls, which it will all the time.

explain that personal finance comes down to living below your means (spending less than you make). If you always do this, you have money left over to save and invest.

If they think it's tough now, ask them how much they think they'll get in social security and how they'll pay their bills on just that. That's the purpose of investing, is to supplement their meager SS in retirement.

finally, explain that managing their money in retirement is just as important (if not more) than learning how to accumulate it over their lifetime. It does no good to save for 40 years if you're going to blow through the money in 10 years. So explain about the 4% safe withdrawal rate so they understand they're taking out smaller amounts for a hopefully long retirement (upwards of 30 years).

show them the FIRE movement:
https://www.madfientist.com/
https://www.mrmoneymustache.com/

the doughroller (Rob Berger) has a new book out called "How to retire before Mom and Dad". I haven't read it, but his stuff on his podcast doughroller was good in a consistent way.

almost forgot. they might want to see videos. there's 10 (about an hour in total) at the wiki:
https://www.bogleheads.org/wiki/Video:B ... philosophy

everything you need to know is there.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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Re: What one Book to read about personal finance?

Post by Cycle »

Start with a YouTube video.

If a book tho, millionaire next door or some savings focused book
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Re: What one Book to read about personal finance?

Post by mptfan »

mega317 wrote: Thu Sep 17, 2020 10:57 am Also I don’t really believe you can “get someone” to do much of anything unless they already have a seed of wanting it.
+1000
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Stanczyk
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Re: What one Book to read about personal finance?

Post by Stanczyk »

The Little Book of Common Sense Investing
Richest Man in Babylon
Millionaire Next Door

P.S. Dave Ramsey is Ok for helping people get out of debt, but his financial/investing advice runs counter to research. I would not let that man invest a penny of mine.
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Re: What one Book to read about personal finance?

Post by BernardShakey »

toocold wrote: Thu Sep 17, 2020 3:28 pm Millionaire Next Door. If you can convince your kids that being rich is different than looking rich, it will go a long way to prepare them for the future.
+1. This is good one to establish the right mentality.
An important key to investing is having a well-calibrated sense of your future regret.
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Re: What one Book to read about personal finance?

Post by MNGopher »

I agree with those who said The Simple Path to Wealth by JL Collins. It's written for people not really into investing, so it's unlikely to blow the average Boglehead away.

The Millionaire Next Door was the first one that really sparked my interest in saving and investing, but it gives less specific advise.
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Re: What one Book to read about personal finance?

Post by iamblessed »

All three are great books for a person new to personal finance.
The Millionaire Next Door
The Simple Path to Wealth
I Will Teach You to Be Rich
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Re: What one Book to read about personal finance?

Post by venkman »

Robot Monster wrote: Thu Sep 17, 2020 12:16 pm If you just want to help them "understand the importance of investing early," just tell them that $10K invested (100% US stocks) in 1972 would have turned into $1,286,111 as of last month.
Source

However, if that 10K was invested ten years later in 1982, it would only have yielded $639,094.
Source
Starting in 1982 actually gives a higher real return. Stocks lost ground to inflation from 1972-1981.
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Re: What one Book to read about personal finance?

Post by fyre4ce »

CABob wrote: Thu Sep 17, 2020 11:01 am My personal favorite for a beginner is Personal Finance for Dummies by Eric Tyson.
+1
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Re: What one Book to read about personal finance?

Post by Brianmcg321 »

JL Collins The Simple Path to Wealth. He's got a blog too.

https://jlcollinsnh.com/stock-series/
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Re: What one Book to read about personal finance?

Post by bogleky »

Collins’ “The Simple Path to Wealth” is excellent and covers a lot of bases- from starting out to how to manage withdrawals in retirement. I found it excellent.

I would also suggest a podcast - NPR’s Life Kit recently did a personal finance series that I thought was good.
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Re: What one Book to read about personal finance?

Post by BHawks87 »

I bought "The Latte Factor: Why You Don't Have to Be Rich to Live Rich" by David Bach for my 16 year old niece.
https://www.amazon.com/Latte-Factor-Don ... 1982120231

Its written as a story about a fresh college grad working their first job and learning about saving and investing. Was a quick easy read and I feel like it would be much better for a younger person than a dry investing/finance book.
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Re: What one Book to read about personal finance?

Post by CurlyDave »

Stanczyk wrote: Thu Sep 17, 2020 8:24 pm The Little Book of Common Sense Investing
Richest Man in Babylon
Millionaire Next Door

P.S. Dave Ramsey is Ok for helping people get out of debt, but his financial/investing advice runs counter to research. I would not let that man invest a penny of mine.
I am a big fan of the Richest Man in Babylon. Every time a friend's child or grandchild graduates from high school I give them a copy. One time a successful friend wanted to know what I was giving his grandkids, so I gave him one. Maybe he thought it was subversive. Anyway he read it at the age of 80 and told me "the only problem with that book is that people who need it won't read it."
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Re: What one Book to read about personal finance?

Post by InvestorP »

So many books out there on this topic. My personal favorite that got me started was "The Millionaire Nextbook." Changed my mind about wealth.

But the book that got me to saving and managing money is this little small unknown book called "Let's Talk Money: Get Budget Results Without a Budget." Changed my life.
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Re: What one Book to read about personal finance?

Post by RetiredNewbie »

Stanczyk wrote: Thu Sep 17, 2020 8:24 pm The Little Book of Common Sense Investing
Richest Man in Babylon
Millionaire Next Door

P.S. Dave Ramsey is Ok for helping people get out of debt, but his financial/investing advice runs counter to research. I would not let that man invest a penny of mine.
The book that opened my eyes that I HAD TO change my financial ways was the Richest Man in Babylon. I'm glad I read that one first. The Millionaire Next Door helped me greatly after that.

You are exactly right about Dave Ramsey. He is great for stone-cold financial losers that spend every dime they get and then use their credit cards like it's free money. But I don't like his investing advice. And I didn't even follow all of his debt relief advice. I didn't cut up my credit cards. I just locked them in my gun safe, because after I woke up financially I was sure I'd get to the point I'm at today, where I don't pay them a dime of interest and I make money off the cash-back rewards. I did start paying off my credit cards with the smallest balances first as Dave suggests, but only for those with balances of a few hundred dollars that were swept away easily. Then I started paying off the ones with the highest interest rate.
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Re: What one Book to read about personal finance?

Post by familythriftmd »

Loved Millionaire Next Door because it's so rich in behavioral finance.
I thought Bogleheads Guide to Investing was fantastic, but that would probably surprise no one on this forum.
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