Investing can be a daunting subject. I’ve always felt it should be a part of the high school curriculum, because we leave high school and college woefully underprepared to save and invest our money (8 years of French, though?!). Reading is the antidote to this problem. Below are four books which serve as a great introduction to smart investing. I am always the most intimidated by a subject (and therefore least likely to start learning) when I know nothing about it. As such, I’ve chosen books that are accessible, fun, and easy reads.
Simple Wealth, Inevitable Wealth by Nick Murray. If a loved one needed to learn about investing, and I could only give them one book, this would be it. This book takes nothing for granted. Murray explains the basics of saving and investing in well written, plain English, and gives new investors most everything they need to know to work towards a comfortable and prosperous retirement. As Murray says, “no matter how much money you have, if you’re still worried, you aren’t wealthy.”
The Little Book of Common Sense Investing by Jack Bogle. Jack Bogle and his company Vanguard have done more good for investors than anyone else. They’ve made it easy and incredibly cheap to access the entire stock market in a way that was impossible just a few decades ago. Bogle has written several books, but this one—which is short and sweet—is the best for new investors.
The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money by Carl Richards. If you want to be a successful investor, then controlling your own behavior is more important than your actual investment strategy. We are our own worst enemy when it comes to investing. This great book explains how to avoid getting in your own way and instead make smart decisions with your money.
The Richest Man in Babylon by George Clason. I don’t know about you, but I love when things are explained in narrative form, with heavy use of metaphor and analogy. This book is designed to explain the basics of saving and investing using a fun story. What you’ll see is that personal finance isn’t complicated at all, you just need to get off on the right foot.
There are many great books on investing, but these four will serve as a solid foundation on which to build. If you want more suggestions, I send out 3-4 each month. To receive those suggestions, you can sign up here.