Building wealth is a slow process – don’t let anyone tell you different. As a real estate investor I always say it’s not about timing the market, it’s about time in the market – and the same can be said for most types of investing.
Some people have a real talent for investing and making money, and some don’t, but like with most things there’s a big common sense factor to personal finance that everyone should be able to grasp. Live within or below your means, pay attention to where your money goes, and educate yourself about what each and every penny is doing for you. Don’t be fooled by get rich quick schemes, and don’t think that money will just come to you without effort and understanding on your part.
If you need help navigating the world of personal finance you’re not alone. Fortunately there are a ton of personal finance books out there that can help (some more useful than others). I’ll be the first to say that these finance books don’t have all the answers, and reading them definitely won’t make you a millionaire, but below I’ve listed five that I think are worthwhile for both newbie and seasoned investors.
The Richest Man in Babylon (George S. Clason, 1926) – A classic finance book from the 1920s that proves common sense has always and will always be the real key to success. A great read for any investor.
The Intelligent Investor: The Definitive Book on Value Investing (Benjamin Graham, 1949) – As the title indicates, this book is all about investing and loss minimization. It adheres pretty closely to my “get rich slow” philosophy. In my career I focus primarily on real estate investing, but the same principles apply.
Rich Dad, Poor Dad (Robert T. Kiyosaki, 2007) – Since first being published 20 years ago, Rich Dad, Poor Dad has become the #1 personal finance book of all time. I can’t say I agree with everything in this book, but you can’t argue with its popularity.
The Wealthy Barber Returns (David Chilton, 2011) – A great book about money management from the author of one of the best selling Canadian finance books of all time. It’s an easy read that offers a ton of insight about how to grow and hang on to your wealth.
The Millionaire Next Door (Thomas J. Stanley Ph.D., William D. Danko, 1996) – This is a great book for younger people just starting out because it teaches some of the basics of personal finance and helps readers to learn and develop good habits from a young age.
**A word of caution – with personal finance books the methods and strategies will sometimes differ based on country, so check before you buy.