My Five Favorite Books on Money

Over the last thirty-plus years, I’ve read a lot of books on finance and investing.  In my opinion, there are a ton of great books out there (and some not-so-great books).  Here are my top five choices for those who are looking to be better stewards of their money:

1. The Millionaire Next Door by Thomas J. Stanley and William D. Danko – This book disrupts the common belief that you can judge a person’s wealth by looking at their lifestyle. The authors dispel the myth that millionaires live an outwardly affluent lifestyle.  Instead, they reveal that the secrets of the wealthy have more to do with saving and investing rather than buying expensive watches and driving luxury cars.  It is an eye-opening read that will likely change your view on becoming a millionaire.
2. The Total Money Makeover by Dave Ramsey – Widely known for his straight-forward advice that avoids any sugar-coating, Dave Ramsey delivers financial advice in the form of what he calls, “Baby Steps.” These are manageable steps that readers can follow one after another to achieve financial security.  While I don’t fully agree with all his advice, if you are just starting out or are in debt, this may be the book for you.
3. Smart Women/Couples Finish Rich by David Bach – David Bach has written several books about money, and I am actually referencing two of them here—one for women and one for couples. His advice includes a nine-step program for achieving financial success.  One thing I really like about this book is that it addresses aligning your money with your values.
4. The Richest Man in Babylon – by George Samuel Clason – Written in 1926, this one is an oldie but a goodie! Utilizing a parable style of writing, Clason teaches about important money concepts such as saving, investing, getting out of debt, and protecting your wealth.  In addition, there is a significant emphasis on giving as part of growing your wealth.
5. The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money – by Carl Richards – We love using Carl Richards’ sketches to illustrate investment and money concepts! They are easy to understand and get right to the point.  In this book, he defines the “Behavior Gap” as the difference between investor returns and investment returns.  That is, the loss of wealth that can be attributed to investor behavior.  Fear, exuberance, anxiety, and optimism are emotions that often compel investors to make poor decisions.  Overcoming these emotion-based decisions helps put you on the path to financial success.

Happy reading!