Recommended Reading

The Richest Man in Babyon

If I could only recommend one book on personal finance, this would be it. I have given away more than 30 copies of this book and will likely give away hundres of copies in my lifetime. I read this book when I was 19 years old and it completely opened my eyes to the elegant simplicity of gaining and managing wealth. The advice is straight-forward and timeless.

It covers investing, saving, income, debt and most other important financial topics. It is written in parable format, so it can be read and understood by anyone, at any level. The stories are very profound and entertaining.

I can’t think of a better investment than six bucks and a couple of hours spent reading this book. If you are new to personal finance, this book is a great place to start learning.

The Millionaire Next Door

The authors of this book interviewed thousands of millionaires and discovered that most weren’t high-income professionals, such as doctors and lawyers.  Instead, they found that average American millionaires were often frugal people, who were self-employed in mundane professions.  They often live in modest houses and drive domestic cars and trucks.  People who accumulate wealth are usually conservative with their purchases.

I have heard this book described as “how to be cheap and get rich in 40 years” and that’s a fair assesment.  While a frugal lifestyle may not appeal to everyone, this book does offer a reliable blueprint for accumulating wealth.  Most personal finance books offer empty promises and not much useful content.  That’s probably why The Millionaire Next Door remains so popular long after it was initially published.

The most important concept I took away from reading this book, is that you are four times more likely to become a millionaire if you are self-employed.  That is a very powerful statistic.

The Type-Z Guide to Success …

Something about this book really resonated with me.  Because I have worked for decades in a stressful and demanding job, I found the relaxing nature of the author and his content to be very refreshing.

Although this book is more focussed on business and motivation than on personal finance, it does offer a sound formula for becoming successful.  The visualization and goal-setting techniques are useful for any pursuit, including finances.

This book may not appeal to everyone, but I love it and I have read it many times.  It has helped me in my own pursuits and that’s where most books fail to deliver.

Rich Dad Poor Dad

This is probably the most controversial book on personal finance ever written.  People either love or hate this book passionately.  I found it to be a little heavy on repetition, but the message is definitely worth considering.

The author supposedly had “Two Dads”.  His real Dad was highly educated but often broke and his best friend’s Dad had made a fortune in his business dealings, despite a modest start.  The theme of the book is that his Poor Dad was always pushing him to pursue a safe career path, even though it had left him broke and vulnerable.  Meanwhile, the Rich Dad was pushing him to start businesses and to make investments that would provide financial security.

The criticisms of Kiyosaki and his books often center around his recommendation of heavy amounts of debt and his contempt for financial investments.  I have also seen him taken to task for dubious performance in his own financial dealings.  While I acknowledge and understand some of these criticisms, I don’t feel it is necessary to agree with everything in a book in order to gain something useful from it. 

There are two reasons I recommend this book.  First, it offers a sound assesment of the advantages of business ownership versus income-based employment.  It also explains the potential pitfalls of relying entirely on a career path.  Second, it offers a sound assesment of the advantages of owning real assets versus financial assets.

The 4-Hour Work Week

I bought this book because I thoroughly enjoyed the Type-Z Guide and was looking for similar inspiration.  This book is very popular and has a dedicated cult-like following.  So, it seemed worth a read.

The premise of this book is that you can free yourself from low-value work, by outsourcing it to low-cost workers.  By concentrating on only the high-value work, you can greatly reduce the number of hours required to make a living.  And by outsourcing menial tasks, you can work remotely and enjoy more freedom.

I enjoyed this book and the entertaining stories of the author.  But, it was incongruent with my goals. I’m not really interested outsourcing my life to becoming a ballroom dancer or a karate champion.  I still believe in producing a product or service to generate income.  And although I would welcome fewer hours and a higher income, I derive a lot satisfaction from a job well done.  This outdated attitude has probably cost me a lot of time and money.

The reason I recommend this book is because it previews the future of international commerce.  Ferriss is ahead of this curve and his ideas provide a means to obtain resources that were previously unaffordable.  I also respect his economics on the cost of performing tasks yourself, when they could be outsourced.

How to Retire Early and Live Well …

I bought this book at a frustrating point in my career, when I was burned out and very interested in early retirement.  Fortunately, I have a new job and a new attitude towards work and my career.  Unfortunately, this book didn’t offer me a retirement solution that was attainable.

This book does offer real-world experience from someone who has sustained themselves completely from investments for over two decades.  However, the author seems to have started out with a significant sum of money, the origins of which are never clearly discussed.  I haven’t been so lucky myself.

So, I feel the promise of this book may be limited to those that have a sizeable nest egg and are looking for a way to live on the cash-flow that could be generated from it.  For those of us who are still trying to reach that point, this book may not be so helpful.  It does offer formulas to determine how much you will need and how long it will take to retire.  But this often adds up to decades of saving to reach this goal.

The reason I recommend this book is because it offers sound advice on wealth preservation and diversification.  Most financial “experts” consider a portfolio diversified if it contains stocks, bonds and treasuries.  Edmunds provides more reliable diversification options, including real assets and international exposure.  And, he backs up his recommendations with historical analysis.

The Wealthy Barber

The personal finance community frequently recommends this book.  And, it’s been on my list of books to read for a long time.  After reading it, I can see why it comes so highly recommended.  It’s a simple yet complete introduction to all of the important principles of personal finance.

The fictitious backdrop for this book is a local barbershop in Port Huron, Michigan.  Roy, the “Wealthy Barber”, dispenses his no-nonsense financial advice while he cuts the hair of three people who are seeking help with their finances.  During each visit, they complete a different section of Roy’s course.  Then, they are required to take action, such as starting an investment and writing a will.

Although the jokes are corny and the financial advice is pretty basic, this is a great book for someone who is unfamiliar with personal finance and needs a complete introduction.  This is one of the few books I have read that provides direct financial advice and encourages readers to take immediate action.  It explains each subject thoroughly, including the benefits and consequences of most financial actions.

The reason I recommend this book is because it offers very specific advice on savings, investments, insurance, wills, retirement and debt management.  It’s laid out in an intelligent fashion and is easy for anyone to read and understand.  It’s also short and to the point.

I’m a member of the Amazon Associates program and I get a very small percentage of books sales, directed from this website. I receive these affiliate sales in the form of an Amazon gift card, which I intend to use to purchase other personal finance books.

I’m not concerned whether you purchase these books through my website or from some other source.  I just want to encourage everyone to get started on their way to prosperity.  Any one of these books could change your financial life completely and that’s a great investment.