Five must read books on investment & personal finance.
Personal finance is an integral part of everyone’s life. People think of it as a complex subject. There are many books available on the subject that can help simplify the topic with the help of engaging stories and anecdotes. We bring to you five of the must read books on this topic.
1. Rich dad Poor dad – Robert T. Kiyosaki
As the name says, this book is about 2 dads ; one being Robert’s biological dad (whom he called poor dad) who despite being highly educated and earning a good income, ended up struggling financially due to his traditional views on money. The other dad is his friend’s dad whom he called Rich dad, and he did not have a college degree but had a rich mindset and street smartness towards money matters. These 2 dads viewed money differently and this made young Robert to compare the learning from each of them. He analysed their views and chose to stand by his rich dad’s teaching and followed it throughout his life and prospered financially. Since it is a personal story of Robert’s life; the book is not boring which personal finance books tend to be.
Kiyosaki tells us the six lessons as listed below that he learnt from his rich dad, and then amplifies them.
- The Rich Don’t Work for Money
- Why Teach Financial Literacy?
- Mind Your own Business
- The History of Taxes and the Power of Corporations
- The Rich Invent Money
- Work to Learn Don’t Work for Money
He provides examples and applications of the learning at each stage which makes the book even more interesting. Read this book to explode the myth that you need to earn high income to become rich.
2. The Richest Man in Babylon – George S. Clason
Babylon is considered to be one of the wealthiest cities of the ancient world. People who lived in this city which existed more than 4,000 years ago, created a set of wealth management principles that hold their ground even today. Investment modes and methodologies changed as years, decades and centuries have passed but the principles in this book remain relevant even today.
This book is a collection of short-stories mostly centred on Arkad who is considered to be the richest man in Babylon. The discussions between Arkad and two of his childhood friends, Bansir, an expert chariot constructor and Kobbi, a talented musician teaches us simple and useful lessons in financial wisdom.
In short, read this book to know how to save money and convert it to an investment that creates wealth. A shorter version is also available: The Richest Man in Babylon: Six Laws of Wealth by Charles Conrad.
3. Simple wealth, Inevitable wealth – Nick Murray
Nick Murray is a financial advisor for financial advisors. Several financial advisors ask their clients to read this book to make them understand the importance of equity investments. This book focused towards equity mutual funds and wealth creation for retirement.
In simple words, this book tells everyone on how to create wealth by being an owner (through mutual funds) rather being a loaner (through debt instruments). Murray expressively makes the case for investing in diversified portfolio of mutual funds through a disciplined approach with help of a personal financial advisor and allowing the portfolio to grow over time to fund your retirement and generate corpus for your kids.
4. You Can Be Rich Too : With Goal Based Investing – P.V Subramanyam and M Pattabiraman
You can be Rich too is crafted perfectly for beginners and youngsters who are new to personal finance management. The authors have kept the language and style very simple, jargon free, and precise. This book makes us question ourselves on where we are, what is our goal, what do we have now and what needs to be done to reach our financial goal. “Rich dad Poor dad” teach you money management on a broader scale while this book would be your step by step guide. The book contain details of 9 online calculators through which you can create your own tailored investments solutions and track them to reach your financial goals.
5. The Little Book of Common Sense Investing – John C. Bogle
John C. Bogle is the founder of Vanguard Group and he was the person who introduced Index mutual funds to the world. He invested primarily in index and created a significant wealth for his clients. His book “The Little Book of Common Sense Investing” is aimed to do the same for readers. Once you read this book, you will be able to
- Construct a broadly diversified, low-cost portfolio without the intimidations of individual stocks, manager selection, and sector rotation.
- Forget the fads and concentrate on what works in the actual world
- Highlight business reality over market expectations.
- Know how index investing is the only way that assures you reasonable segment of stock market returns.
In a nutshell this book tells us about how to invest in index mutual funds for long term consistent returns that beat the market with minimal dependency on fund managers.
Hope you enjoy reading these books and we wish you all the best for your improved personal finance journey.
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