Finding the best books on personal finance can be a real challenge. Personal finance is a very broad subject, covering money management, investing, insurance, and financial planning just to name a few.
From an investing perspective, personal finance is your first step. And, much like investing, it involves a process, so there are several different parts to consider.
Books on personal finance generally focus on special situations (how to avoid bankruptcy) or are very general and leave you wanting more (i.e. their next book).
For books on investing, most focus on the “how” of investing (i.e. what techniques to use) or try to describe the “why” (i.e. markets behave this way or that way).
Both are important, but not the complete picture. In the end, safe investing is about making money. As a safe investor, your goal is to put money into the market (via stocks, bonds, etc.) now, and get more money out at some point in the future.
No one strategy will work 100% of the time (easiest example is that it is impossible to day-trade in an employer sponsored retirement account).
So, here are some of the best books on personal finance and investing:
For an overview of how “markets” function (i.e. the “rules” of the game):
- Trading & Exchanges – Larry Harris
For a big-picture view of personal finance and how investing fits (i.e. your starting position):
- Rich Dad Poor Dad – Robert Kiyosaki
- The Richest Man in Babylon – Clason
- The Elements of Investing – Malkiel and Ellis
For different “techniques” (i.e. the method you’ll use to make your millions):
- Intelligent Investor – Benjamin Graham
- Reminiscences of a Stock Operator – Edwin Lefevre
- How to Make Money in Stocks – William J. Oneil
- Methods of a Wall Street Master – Victor Sperandeo
- Trendfollowing – Micheal Covel
- Trading Systems that Work – Thomas Stridsman
And for goal setting:
- Think and Grow Rich – Napoleon Hill