Yes, we believe everyone should have a financial advisor they can turn to as a guide and sounding board. But we also believe that when it comes to your finances, soaking up knowledge and insights from a range of perspectives is vital!
In fact, our team is always reading (and sometimes re-reading) books by authors from various fields and backgrounds. We have a few favorites in particular that have positively impacted our money mindsets and habits. Check out three engaging and enlightening financial-related books touching on topics like financial independence, investing, and economics below.
“The Millionaire Next Door: The Surprising Secrets of America’s Rich”
Written by researchers William D. Danko and Thomas J. Stanley, The Millionaire Next Door: The Surprising Secrets of America’s Rich addresses finances with an emphasis on becoming financially independent.
Danko and Stanley compiled research on millionaires across America and shared their surprising conclusions in the book, including:
- Most millionaires live in modest neighborhoods and earn modest incomes.
- They tend to be prolific savers of their income and bypass luxury items like expensive foreign cars, watches, and other status symbols that depreciate quickly.
The Millionaire Next Door conveys the classic message that “keeping up with the Joneses” can lead to financial turmoil and ruin, while modest living can lead to financial independence. It’s a wonderful read to give to your high school or college student to set them on a course involving financial responsibility and planning.
“One Up On Wall Street”
Another classic, One Up On Wall Street: How to Use What You Already Know to Make Money in the Market, was written by the famed Peter Lynch. Lynch was known as one of the greatest investors of his time while he managed the famous Fidelity Magellan Fund between 1977 and 1990. During his time at the helm of Magellan, investors averaged a 29.2% annual return on the fund, doubling the performance of the S&P 500 in the same period of time.
The book’s simple mantra: “Invest in what you know.” Instead of poring over the boring financial statements of stodgy companies, Lynch advises looking through your household and investing in stocks that produce the everyday items you love and use regularly. Or better yet, talk to your children to discover what young people are interested in and/or buying with their own money.
This simple research might uncover the next “tenbagger,” as Lynch would say (i.e., stocks that appreciate tenfold from the initial investment). Individual stock investing involves risk but researching the trends in the “real” economy is an interesting and potentially rewarding exercise.
“Economics in One Lesson”
Our final financial book recommendation is Economics in One Lesson: The Shortest & Surest Way to Understand Basic Economics by Henry Hazlitt. Hazlitt worked for The Wall Street Journal and was Editor of Finance and Economics for The New York Times from 1934 to 1946.
As the name implies, this is a refreshingly easy read. Hazlitt analyzes bad economic policies and fallacies such as the “Broken Window Fallacy” and “Modern Monetary Policy.” He does wonders by boiling down complicated economic theory into simple terms that can be easily understood.
Although Hazlitt wrote the original edition in 1946, his insights and warnings are timeless—making this book another wise choice for anyone in high school or older who wants to understand economics in an engaging read.
Keep Seeking Financial Knowledge
These are just a few of our favorite financial books, but we encourage you not to stop there. Keep learning and brushing up on your finance and economic knowledge as you strive for a comfortable, secure life through retirement. And if you read any of these (or have a recommendation of your own), reach out to let us know what you think!
Whether you want to talk more book recs or you’re ready for personalized financial guidance from advisors who genuinely get to know and care about you, we’re here to help. Contact Carlson Investments to learn more today.
Carlson Investments does not provide tax, legal, or accounting advice. This content has been written for informational purposes only. Always consult your individual tax, legal, or financial professionals for advice tailored to your situation.
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