Even the best savers, borrowers and investors need a bit of a tune up sometimes, so where better to look than to personal finance classics? These books are useful for novices and pros alike who want to work out a wealth-building strategy and implement it in less than a year.
1. The Millionaire Next Door by Thomas J. Stanley and William D. Danko
There’s a reason this book is an international best seller. The edition I own is 272 pages of tried-and-true, practical advice to get your finances in order and build wealth over the long term. From investing fundamentals to how to curb spending, it nails the psychology of building a nest egg and what could be holding you back.
2. The Intellegent Investor by Benjamin Graham
The Intellgent Investor was published more than 65 years ago, but its ideas still have a valuable place in the modern stockmarket. Graham, a value investor, teaches readers how to minimise error and build a strong portfolio over a long period of time.
3. Rich Dad, Poor Dad by Robert T. Kiyosaki
Kiyosaki starts his book with the assertion that we learn nothing about money in school. And he’s absolutely right. The premise of his best seller is that financial literacy begins in youth, but so often we leave it till late adulthood to learn about. The book will challenge your understanding of an asset and a liability and give you a few gems to pass down to the kids.
4. One up on Wall Street by Peter Lynch
The moral of this wonderful story is you know just as much as a Wall Street fund manager paid 20 times your salary. Lynch would know, as he was a fund manager himself. He shows you how to spot sound investments without changing your everyday routine.
5. The Richest Man in Babylon by George S. Clason
More for inspiration than anything else, the Richest Man in Babylon has some lovely anecdotes and credible commandments about wealth-building, such as ‘Control thy expenditures’ and ‘Make of thy dwelling a profitable investment’. I read it in uni and would recommend it for students familiarising themselves with the world of personal finance.