I have gotten dozens of requests for book requests from Money Habit readers. The right book can be a real game-changer. So without further ado, here are my 9 favorite personal finance and career books.
Book Recommendations
Your Money Or Your Life
– YMOYL was one of the the first personal finance books I read and was one of the most influential. I consider it a classic of the FIRE movement. It helps you build a life philosophy and framework for how money fits into your life. One of the most impactful exercises they walk you through is dividing how much you earn by the number of hours you work. You now have a way of converting each purchase to a number of life units rather than just money you must spend. Seeing that a new phone purchase will cost you 50 hours of your life will do a lot to curb unwise purchases. It also ignited my interest in investing, because you can send those dollars to work for you and buy your time back. A few of the chapters especially around recommended investment strategies are a little outdated, but it’s still one of my favorite personal finance books of all time and well worth the read.
The Millionaire Next Door – Another classic. By interviewing thousands of millionaires, Stanley Thomas debunks all the myths of how a millionaire actually spends his/her money. Millionaires look incredibly different than what Hollywood portrays. If you want to be a millionaire yourself, you’d do well to read this book.
The Only Investment Guide You’ll Ever Need
– Unfortunately, it is not in fact the only investment guide you’ll ever need, but it’s a pretty great start. This book walks you through the basics of all different kinds of investment options and also talks about who they might be appropriate for. I don’t agree with all the advice, but it’s a well-rounded, simple and clearly written book to introduce you to possible investment strategies from real estate investing to stocks to treasury notes.
The Bogleheads’ Guide To Investing
– The Bogleheads community follow the tenets of Jack Bogle, founder of Vanguard. There focus in one passive investing strategies that rely on investing in low cost index funds. I don’t believe passive investing is the only way to make money (I personally know several active investors who have beat the market consistently for over 20 years). That said, it is an excellent primer on passive investing which I believe is appropriate for at least 75% of the population in the tradeoff of time/knowledge/stress/risk. Anyone who wants to actively invest should have a strong foundation in low cost index fund investing which should serve as a benchmark for their performance, which means it is a good read for everybody.
What Every Real Estate Investor Needs To Know About Cash Flow
– This is a pretty math-heavy book, but to me it is the best way to approach real estate investment, whether it is an owner occupied or rental unit. Gallinelli talks about the four ways real estate makes money for you. He walks through the different ratios to evaluate an investment opportunity. This is a nice manual you’ll want to keep on your bookshelf and pull out every time you consider a home purchase.
The Four Hour Work Week
– Tim Ferriss has put some pretty revolutionary ideas between the pages of this book. I found this in college and think it is an inspirational read with a focus on developing semi-passive investment by building your own business. He sells the idea of the nomadic lifestyle which is less appealing to me (indeed, it doesn’t appear sustainable for many people as Tim has settled down himself). Overall, it’s a great book and the revised version shares a bunch of case studies from successful readers which is a nice touch.
Lean In
– I think everyone should read this book, whether you are a man or a woman. Sheryl Sandberg’s views on joining a rocket ship, being vocal at the table, and being present with pedal to the metal until you actually make some sort of transition are all tens of thousand of dollar type ideas. They will make you real money in your career. I’m ashamed to say that I avoided this book like the plague when it came out because I didn’t dig the feminist angle and thought I was already a confident pseudo-dude in the workplace, but she taught me a ton that I’m grateful for. A friend gave it to me with the advice to “get over yourself and read this book: it’ll be worth it.” I impart those same words to you.
The First 90 Days
– This book is focused on what you should do in the first 90 days of a new job to ensure your success. I like it not just for the techniques it covers, but also for its general mentality that you can “manage” your career in an active fashion beyond developing your technical capabilities. People live tens of thousands of dollars on the table in promotions and raises by not acknowledging there is an entire skill set to build beyond their technical skills. This gets you thinking about some of those skills.
Saving The Best For Last
The Power of Habit
– This book isn’t strictly personal finance nor is it focused specifically on career. It’s better than that. This book is everything. The tenets of this blog are based on how powerful habits are in helping you achieve what you want. Duhigg walks you through all sorts of psychology research as well as the technique for identifying your cues, routines, and rewards, and substituting new routines in the loop to speed you to success. I have bought copies of this book for friends and family. I own it in hard copy and e-book. It doesn’t sound glamorous, but it is crazy effective. If I were able to jump up and down to get your attention for one book, this would be it. It’s game-changing if you actually apply it to your life.
Are any of your favorite books missing from this list? Tell us about your top reads in personal finance and career and why they make the list.
I’ve always been a huge fan of How to Win Friends and Influence people by Dale Carnegie; it breaks down and emphasizes those soft skills that often go overlooked in the workplace and it’s a particularly great read when you aren’t feeling all those “team player” warm and fuzzies that are so touted in today’s work environment. I like to go back to it when I find myself frustrated by people. It’s great for young professionals who are learning the ins and outs of professionalism, and especially for new managers who now need to learn to motivate people to WANT to do good work for them.
Thanks Alexis. I don’t know how I forgot that one. Love that book!
Thanks JP
Good to know I’ve read at least half the books you’ve read. Will finish out the list this year;)
Hey there JP!
GREAT post! You have put together an interesting list. They´re all fantastic reads. I never heard of this book about Real Estate Investing by Frank Gallinelli though. I went over the reviews on Amazon and I´m now quite impressed. My personal library lacks decent books on Real Estate Investing, so thanks for the suggestion.
My favorite book is the Intelligent Investor by Benjamin Graham. I keep coming back to it like a christian to his Bible, particularly during times of trouble (aka bear markets). It´s an old book but the ideas within it are timeless.
Love that book!
Thank you for this list of books! As I age and realize what I want out of life, the need to get ahead of the money curve has drastically increased. I was never one to live paycheck to paycheck, but I’ve also never been one to save either. The suggestion of “Your Money or Your Life” has me hooked. I’m going to pick up a copy this weekend.
Are there any blogs that you would suggest? I love books, but I find a daily dose of inspiration from a blog or website keeps me feeling motivated.
Also ‘ The Rules of Wealth’ by Richard Templar. Great and simple advice to create wealth and make it grow.
Good list, JP. A few more suggestions – ‘The Richest Man in Babylon’, ‘Think and Grow Rich’, and ‘Rich Dad, Poor Dad’. I wouldn’t be close to achieving financial independence at age 32 had it not been for reading Robert Kiyosaki’s ‘Rich Dad’ series in my early twenties. Also, ‘The Rules of Wealth’ by Richard Templar. Great and simple advice on how to create wealth and make it grow.
As essential as financial books are to planning an early retirement, I believe that mindset and psychology are just as important when aiming to reach financial freedom. I would then recommend any of Tony Robbins books for direction with this.
Rachel, England.
The Richest Man in Babylon by George S. Clason
Financial concepts are illustrated by stories. Saving, taking advantage of opportunities, overcoming bad decisiones, etc..
Easy to read & reread. It is a financial literacy classic.
Ah, I enjoyed that one as well. Thanks Gabriel.
Love your book recommendations, I know you didn’t encourage necessarily reading a textbook but if you did for financial modeling of stocks did you have anything you liked for the curious?
Hey Andrew. Can’t think of anything for financial modeling specifically. I did a lot of that in my career so I never sought out a book for it.
I’d like to add to the list:
Give and Take by Adam Grant. He groups people into 3 categories: GIVERS, MATCHERS, and TAKERS. He argues that the people are the bottom of the success ladder are mostly GIVERS, and the people at the top are also…GIVERS. He divides GIVERS into 2 additional categories: i) those who selectively choose whom they give to (help) thus avoiding TAKERS who are only out there to take what they can and leave ii) those who do not selectively choose and thus end up being burnt out b/c they get taken advantage of by GIVERS. The premise is that the more we give (help others, of course, selectively), we will succeed more. One quote I really liked from his book is also, “the true measure of a man is how he treats someone who can do him absolutely no good.”
A book on financial knowledge – The Simple Path to Wealth, breaks down 401k, roth, IRA, charity foundation, index funds, bonds to a very, very easy.
I think I read an interview with Adam Grant on that concept. Interesting stuff.
I am really enjoying your blog. Thanks for the advice on books. I also agree on Rich Dad Poor Dad. I have read it more than once.
Hey Gina, glad you like it!
My new favorite is ” Loaded: Money, Psychology, and How to Get Ahead without Leaving Your Values Behind” by Sarah Newcomb. Doesn’t explain how to get to the finish line but what might be holding you back.
Two books:
1. Buffett: the making of an American Capitalist – best business biography.
2. Relentless by Tim Grover – wow – just makes you get up and GO!
Thanks James. Will add them to my reading list.