What two books to recommend for Personal Finance (1 Viewer)

[Hastur]

OK, we've done this countless times, but here is a twist:

Subject you are recommending books to:  They(age 25, entry level admin job) have never heard of an IRA, let alone compound interest. At least a semi-Intelligent person(college degree), was just never taught/talked to about personal finance.  They ask you for some advice, and you happen to know they like to read.

Personal finance is a subject you can classify as dry on its best day.  In order for the book to be read(let alone followed), you better make sure it is enjoyable to read and actionable.

So, what two books would you recommend?  Yes, "A Random Walk Down Wall Street" and "Unconventional Success"(my personal favorite) are great books, but how likely is it someone who has never really gotten into personal finance read these books?  Understand, your goal here is to not only have them read the books, but act(open an IRA for example).

 

[rockaction]

That Clark egg and Suze! 

Who else?

 

[Mrs. Rannous]

Can't they just go with Personal Finance for Dummies?

 

[elbowrm]

The Wealthy Barber was helpful to me at that age.  More recently, How to Think About Money by Jonathan Clements (ex WSJ personal finance columnist) is a really good choice.  More philosophical than a how-to necessarily, but exceptionally well written and thought-provoking.

 

[Balco]

Bogleheads Guide to Investing: Changed the way I looked at investing. Plain English explanations. Can't recommend it enough.

 

[Rogi]

Dave Ramsey has some practical advice on budgeting and spending.  His stuff is pretty basic and more motivational than anything else.

Early chapters of "your money or your life" are good.

 

[Dentist]

I wouldn't recommend a book, tl;dr.

Maybe a good blog like: I will teach you to be rich

Also a good book.

My favorite personal finance book is jane Bryant Quinn's where you put your money now.

But it's huge and more of a reference guide, 

 

[Mr. Pickles]

Investable Dollars by Dentist changed my life. 

 

[wilked]

Millionaire Next Door

title is catchy enough that they will pick it up, concepts pretty easy to digest. Goes after the most basic principle (and most commonly missed) of becoming wealthy - live below your means 

 

[tommyboy]

OK, we've done this countless times, but here is a twist:

Subject you are recommending books to:  They(age 25, entry level admin job) have never heard of an IRA, let alone compound interest. At least a semi-Intelligent person(college degree), was just never taught/talked to about personal finance.  They ask you for some advice, and you happen to know they like to read.

Personal finance is a subject you can classify as dry on its best day.  In order for the book to be read(let alone followed), you better make sure it is enjoyable to read and actionable.

So, what two books would you recommend?  Yes, "A Random Walk Down Wall Street" and "Unconventional Success"(my personal favorite) are great books, but how likely is it someone who has never really gotten into personal finance read these books?  Understand, your goal here is to not only have them read the books, but act(open an IRA for example).

Total money makeover by Dave Ramsey

 

[Hastur]

The first book I gave the guy was "The Richest Man In Babylon".  Core concepts, easy to read, inspires to invest.

I like the Dave Ramsey suggestion.  Might have to go that route when he finishes TRMIB.

 

[matuski]

Four Pillars of investing

 

[Spike]

I wouldn't recommend a book, tl;dr.

Maybe a good blog like: I will teach you to be rich

Also a good book.

My favorite personal finance book is jane Bryant Quinn's where you put your money now.

But it's huge and more of a reference guide, 

This cracked me up as I have her "Making the most of your money" book on my bookshelf behind me as I type this.

 

[-OZ-]

Dave Ramsey has some practical advice on budgeting and spending.  His stuff is pretty basic and more motivational than anything else.

Early chapters of "your money or your life" are good.

Total money makeover by Dave Ramsey

best answer imo, take the young dude to financial peace university.  We've taught it a few times and will continue to do more.  Not everything is "right" long term imo but if you can incorporate the habits taught, you'll do well.

And read the tortoise and the hare.

 

[Long Ball Larry]

Four Pillars of investing

if this is the book i remember, it seems a little too abstract for this situation, but i read it very long ago.

 

[[scooter]]

Anything by Clark Howard, nothing by Dave Ramsey or Suze Orman.

 

[Long Ball Larry]

if this is the book i remember, it seems a little too abstract for this situation, but i read it very long ago.

nevermind,not the same book.

 

[eoMMan]

Control Your Cash by Greg McFarlane 

http://www.controlyourcash.com

 

[-OZ-]

Anything by Clark Howard, nothing by Dave Ramsey or Suze Orman.

For the basics?  Why not? 

 

[Nugget]

Download Wallstreet and do what Gordon Gekko does. 

 

[Chaos Commish]

Bogle's Little Book of Common Sense Investing. Updated, revised for 2017.

 

[Dentist]

Investable Dollars by Dentist changed my life. 

every dollar that could be invested but instead is spent, is inherently wasted.

the end.

 

[[scooter]]

Anything by Clark Howard, nothing by Dave Ramsey or Suze Orman.

For the basics?  Why not? 

Because you don't need a book to learn the basics. Live beneath your means, pay your debts as soon as possible, invest your savings. There, I've just covered everything you need to know from Dave Ramsey.

 

[-OZ-]

Because you don't need a book to learn the basics. Live beneath your means, pay your debts as soon as possible, invest your savings. There, I've just covered everything you need to know from Dave Ramsey.

not quite but that's the cliffs notes.  In the same regard you don't need to read anything.  Add "invest in inexpensive ETFs, balance your portfolio once a year, and buy real estate only at a discount to its real value" and we're pretty much done here. 

 

[NewlyRetired]

 Live beneath your means.

I think almost every American knows and understands this term but so few actually practice it.

If anyone is interested in learning more about how and why people fail to follow this basic concept and what affects it has, I am all for it, no matter who writes the books.

 

[eoMMan]

I think almost every American knows and understands this term but so few actually practice it.

If anyone is interested in learning more about how and why people fail to follow this basic concept and what affects it has, I am all for it, no matter who writes the books.

Yup. And think about it like losing weight. Everyone knows, or should know, that it is as easy as eat less/move more. Nothing wrong with people learning different things and different ways to accomplish goals.

 

[Tiger Fan]

Millionaire Next Door

title is catchy enough that they will pick it up, concepts pretty easy to digest. Goes after the most basic principle (and most commonly missed) of becoming wealthy - live below your means 

This

 

[Beef Ravioli]

Another vote for Dave Ramsey

 

[NewlyRetired]

Millionaire Next Door

This is my number 1 choice as well.

I think it is much more important to grasp and buy into the high level concepts before you start learning what a mutual fund is or other specific items with in personal finance. 

 

[Dentist]

This is my number 1 choice as well.

I think it is much more important to grasp and buy into the high level concepts before you start learning what a mutual fund is or other specific items with in personal finance. 

It is a great book.

And I agree that people get so boggled down in the nuances of investing and it paralyzes them.

It's never been cheaper or easier to invest in the history of investing...    yet for most people starting with having money to invest, just opening a brokerage account for their Roth IRA,  funding it, and putting it into a target fund is asking too much.

 

[Spike]

It is a great book.

And I agree that people get so boggled down in the nuances of investing and it paralyzes them.

It's never been cheaper or easier to invest in the history of investing...    yet for most people starting with having money to invest, just opening a brokerage account for their Roth IRA,  funding it, and putting it into a target fund is asking too much.

Why would most people need to do this if they're already investing in a 401k or 403b?

If someone is putting $10,000 a year into the 401k or 403b (which is not more, annually, than one is allowed to invent), why do the Roth?

Asking for a friend.

 

[eoMMan]

Why would most people need to do this if they're already investing in a 401k or 403b?

If someone is putting $10,000 a year into the 401k or 403b (which is not more, annually, than one is allowed to invent), why do the Roth?

Asking for a friend.

Multiple reasons...

10k might not be enough (especially if no match)

Roth grows tax free and distributions are tax free. This gives you flexibility in retirement. 

Better than wasting the money on depreciable assets.

 

[Rick James]

I really like The Index Card by Olen and Pollack. Before it was a book, one of the authors said he could summarize everything you needed to know about finance on a 5 x 7 index card (pictured here).The book goes deeper into those points, but that's it.

 

[Dentist]

Why would most people need to do this if they're already investing in a 401k or 403b?

If someone is putting $10,000 a year into the 401k or 403b (which is not more, annually, than one is allowed to invent), why do the Roth?

Asking for a friend.

sorry, instead of Roth I should've just mentioned "retirement plan" in general.    But in most cases the Roth will have better fees, better choices, and the taxes are already paid.

Generally speaking the proper strategy is:

Contribute to a 401k first only if there's a match, and if so contribute as much as you need to get the match

Then Roth IRA

Then back to 401k until its maximum

 

[Dentist]

Better than wasting the money on depreciable assets.

This is the bottom line.   Whatever you can do to buy things that increase in value or at least stay stable and minimize things that decrease in value is a win for you in the long run.

It's tough because most thing you buy are down the drain.. insurance, food, taxes, clothing, shelter if you don't own, vehicles... and all that's before you get to even one dollar of actual discretionary fun spending, which of course I don't advise.

 

[Spike]

Millionaire Next Door

title is catchy enough that they will pick it up, concepts pretty easy to digest. Goes after the most basic principle (and most commonly missed) of becoming wealthy - live below your means 

By whom?  I see a "Dave Ramsey" and a "Thomas J Stanley".

 

[Dentist]

By whom?  I see a "Dave Ramsey" and a "Thomas J Stanley".

the latter.  

 

[Spike]

Thanks guys!  I'll tell my friend about this and maybe my, um, HIS, son.