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Since I started my journey to a better financial state, I have read many Personal Finance books. I have mostly read books about Investing. I have also read some more general personal finance books that are going all around. I thought it would be interesting to compile the list of all the books I have read so far.
Here, you will find the list of all the best personal finance books I have read. I have put them into several different categories. I will keep this page up to date with the future books I am going to read.
If you have any suggestion of book for me, I would be glad to hear about it!
There are many books out there that focus on Investing. I have mostly read about passive investing and the use of index investing. But some of these books are not about index investing.
This first book has been written by John C. Bogle, the founder of Vanguard. The book is about investing through passive investing mutual funds. The idea is that since we cannot time the market on the long-term, it is better to not try and simply replicate the performance of the market. Since John Bogle is also the inventor is the first index fund, it should not come as a surprise that this book is all about index funds.
It is a good book, backed by many data tables and graphs. The points the book make are very important. However, it insists a lot upon itself. The book is all about showing that index funds are better than active funds. And each chapter simply adds a layer to that conclusion. And it is not really practical. It will not tell you how to invest. Indeed, it will only tell you to invest in index funds. Nevertheless, it is an interesting read if you need convincing that index funds are the way to go.
If you want to learn more about this book, you can find it on Amazon or you can read my full review of The Little Book of Common Sense Investing.
The Bogleheads are people who follow the ideas of John C. Bogle. Several of these people came together and wrote a full guide to investing like John Bogle.
This book is all about index investing as well. But it is much more practical than the original book by John Bogle. It contains information on how to choose between different funds and how to invest. It also contains information as to how you should diversify your portfolio. The book gets quite to the point and does not contain a lot of unnecessary information.
This book is a good book to start reading about investing and retirement. If you do not have much information about this, it will be very helpful. Unfortunately, it does not contain information for non-U.S. investors. But that is something that is almost always the same in every book.
If you want to learn how to invest like a Bogleheads, you can have a look on Amazon or you can read my full review of The Bogleheads Guide to Investing.
This book is very different from the other investing books I have read. In fact, there is nothing about index investing in this book. This book relates the story of Nicolas Darvas, an international dancer that made two million dollars in the stock market in about two years.
The book is written a bit like a novel, relating the story from the beginning to the end. Nicolas is by no means a professional trader. He learned everything by himself. He started by losing a lot of money investing in stocks. Then, he learned many very important lessons. For instance, he soon realized that emotions were the enemy of investing. You should never let your emotions tamper on your investing decisions. Another thing he learned is to never follow the crow. Most advice that you will get are either too late or are coming from people with different interests from yours.
Overall, I liked this book. Even though this is not my of investing, it relates a very interesting theory. And I think that you can learn some very powerful lessons about investing. These lessons are also valid about index investing. You need to be aware that the author took many risks by using large leverage for instance. This is not very clear in the book that he could have lost everything and more.
If you find this book interesting, you can find the book on Amazon or you can read my review of How I made $2,000,000 in the Stock Market.
Personal Finance Books
There are also a lot of general personal finance books. Since it is a very important subject, these books will also cover some investing information. However, this is not their main focus.
This book is specially tailored for millennials, people who reached adulthood during the 21st century. It is made to help people get rich slowly, by following five different tips.
First of all, you need to save money. There is no way you are going to get rich if you do not save money. Then, you need to understand the basics of finance and investment. Once you understand enough, you can start to invest your savings. WIth your savings and the returns from your savings, you can get rich slowly.
Overall, it is a nice book, although a bit short. The author even gives you other books as assignments in each chapter. This is something I really liked. This book is great for normal retirement but it is not really suited for early retirement. If you want early retirement, you will need to save more than 15% of your income.
If you want to get rich slowly, you can find it here or you can read my full review of How Millenials Can Get Rich Slowly.
This book is a nice book, very easy to read and quite enjoyable to read as well. The point of the book is mostly based on automation. The idea of the author is that everything gets easier once you automate it.
Therefore, you should automate your bank accounts in order to automatically save some percentage of your income (your savings rate). Then, you can automate some bills. You can also automate transfers to your investment accounts such as your broker account or your 401(K).
Although this book is nice, I think there are many issues with it. First, I do not think that too much automation is good for your personal finances. In fact, I think that automating your personal finances is a mistake. Moreover, some of the views from the author are too conservative. You should save more than 20% of your income if you want to retire early. And you should definitely avoid funds with even 0.75% of fees.
If you want to know more about wealthy people, The Millionaire Next Door is a very interesting book about them. The authors of this book gathered precise information about hundreds of wealthy people and compiled them to know what made people wealthy.
They found out a lot of very interesting things about wealthy people. For instance, many people would be surprised to know that a lot of high-income earners are not wealthy at all. If you spend all your income, regardless of how big it is, you will never be wealthy. Wealthy people that have been interviewed lived a relatively frugal life, saving most of their income and investing their savings.
I really liked this book. It is packed with many interesting stories and the authors really did a lot of research to find out information about many millionaires. Unfortunately, it is a bit old and do not cover any young millionaires and do not have anything related to early retirement. Nevertheless, it can teach you some very important lessons.
Get Rich Books
The previous category of Personal Finance Books already mentioned some that were trying to make you rich. However, they are not aiming to make you really rich, just more wealthy. Their point is that you will retire without issues. On the other hand, there are some books that are really trying to help make you rich.
This one is a very old book, from 1937. Think and Grow Rich is the oldest personal finance I have read so far. It is also one of the strangest.
On one side, the book makes a lot of very important points. For instance, the author insists that it is very important to master your emotions to get rich. I completely agree with that statement. You also need to persistent and never quit. Avoiding using alibis is also a very good piece of advice. It does not help at all to use alibi to explain your failures.
On the other hand, the book is almost mystical in its teaching. It is talking about things such as mystic signs or exalted planes of thoughts. It goes so far as saying that you can transmute your desires into gold. And the way it is written, even though it makes some nice points, is not really enjoyable. Finally, it is quite old and this is reflected in some of the points of the view of the author, especially regarding women.
This book is about the story of Robert Kiyosaki and his two fathers. Actually, one is his real father, living an average life as a state employee and the other is the father of his best friend. The second father is highly entrepreneurial and is more wealthy than his own father.
There are a few good points in the book. You should make your money work for you. And you should work for yourself and have other people work for you if you want to become right. This is completely true. The book is not about getting frugal and reach Financial Independence but become rich.
Overall, I did not think much of this book. Although it makes some good point, it is not really well written. Moreover, it insists a lot on real estate. This is not the only possible investment but the one that the author mainly used.
Financial Independence Books
Although there are thousands of Financial Independence blogs, there are not a lot of Financial Independence books on the market yet. I really wish there were more of them. The Financial Independence and Retire Early (FIRE) movement is still pretty young. I am pretty sure that there will be more books on the subject as it matures.
This book by Eric Duneau is about becoming Financially Free with Real Estate. Eric was able to be Financially Independent with four properties. He devised an entire strategy for everyone to be able to retire early by buying only four properties.
This book is really interesting. It explains very well why you cannot trust the money system and why cash will very quickly depreciate. I really enjoyed the first part of the book describing the entire financial system. It really shows why it is necessary to invest if you ever want to become Financially Free.
Eric describes his entire strategy very well with numbers and a lot of information to support it. His strategy is based mostly on Real Estate. He is using a lot of leverage as well to make better returns. If you are mostly interested in stocks, this book is probably not for you. But if you want to learn about an alternative form of investment, you may be really interested in this book!
This book by Grant Sabatier is all about becoming Financially Free. Grant was able to save one million dollars in about five years. He did this by having many income channels next to his main job. Moreover, he also invested every money he got from his various side hustles.
In this book, the author gives a full actionable to reach Financial Independence or Financial Freedom as the author calls it. Each step is well defined, from the goal to all the steps you have to take in order to reach your goal!
Overall, I think it is quite a good book. And it has a very nice point of view on Financial Independence. However, there is nothing really outstanding in the book. Indeed, you can find most of its content for free on multiple blogs. The advantage is that it is condensed together nicely. Also, Grant managed to reach Financial Independence during five years of a raging bull market. And he also gets a large income from its blog. Keeping these two points in mind, I find the book a bit too optimistic.
I am far from being a minimalist. In fact, I think I will never be one. However, I do not clutter and I like things to be tidy. Therefore, I started reading books about minimalism to find ways to improve my apartment and reduce clutter in my life.
This book is from Marie Kondo, a Japanese author. It is not really about minimalism but it is about tidying up and both are highly related. This book is entirely about making your home tidy.
I was really surprised by this book. It is a really interesting book to read. It is full of advice that is highly practical and it offers a different perspective on tidying than most people. For instance, you often hear that you should try to tidy little by little. But the author advocates against that. She argues, and I think it makes total sense, that if you tidy little by little, it will be much harder to make everything stay tidy. On the other hand, once it is totally tidy, it will need very little time to stay that way!
This book is probably the shortest I have ever read. It is definitely a minimalist book about minimalism.
The book contains many bits of advice about decluttering and tidying your home. It goes all the way from decluttering your house to decluttering your finances and personal relationships. I never took decluttering to this level. But I am guessing that some people go all the way.
Even though this book contains many excellent recommendations, I do not think it does a good job of promoting the minimalist lifestyle. It is missing some specific advice. It should be a bit more actionable in my opinion. And also it could benefit by getting a few more pages.
If you want to read more about this book, you buy it on Amazon or you can read my full review of Adopting the minimalist lifestyle.
Normally, I am not that much into books about lifestyle and happiness. But I figured it could be interesting. This is only loosely related to Personal Finance but there is some relation. For instance, you are unlikely to be very happy if you have debts and are unable to save anything.
This book is about how to define happiness. It is very specific to each people. But, by studying happy people, we can get a better view of what makes them happy. And on the contrary, by studying unhappy people we can learn even more about happiness.
The book gives many practical tips about how to get your life in the tracks to happiness. This will not change your life overnight. But adapting some of these pieces of advice could help live your life better.
It is a very interesting book about happiness. It is a very honest book, not a fake formula for happiness that will help nobody. Yet, it is full of really practical pieces of advice.
I am currently not reading any personal finance books, just reading novels. I have no idea what I will read next. I am generally waiting to get a good offer on a Kindle e-book before I read. Here are a few books I would really like to read:
- The Intelligent Investor
- The Simple Path to Wealth
Do you have any recommendation for me?