Hugh's Recommended Reading List
Here are some good books to read on personal finance:
My Favorite Financial Books
- The Millionaire Next Door by
Thomas J. Stanley and William D. Danko. - A very enlightening
book who tells you exactly who the real millionaires are in the world. There is
a big difference between those who look rich and those who really are.
- Shattering the Two Income Myth by Andy Dappen. - I love this book too
since it breaks that concept that two earner households are really better off.
I know our family is much "better off" and definitely much happier now that we live
on one full-time income, than when both my wife and I worked and we had "all that
extra income". I have even written a calculator based on one from USA Today to help illustrate the point.
- Cheap Tricks by Andy Dappen. - Another great book from Andy Dappen on
a whole bunch of ways to save money on just about everything. It is very
- Rational Simplicity by
Tim Covell. His basic concept is "The more
you have, the more you have to worry about". Lots of stuff does not make people
happy. The amount of "stuff" and money one truly needs to be happy and fulfilled
is actually not as much as many high priced financial planners would like for
you to believe. This is a short book, well written, and an easy read. He tells
his story on how he attained his goals, and gives plain advice on achieving
- The Common-Sense Mortgage
by Peter G. Miller. An "everything you need to know" book about mortgage loans.
Comprehensive, yet easy to follow and read.
For the Novice or Person just starting out
Every high school graduate should be forced to read and re-read one of these.
The basic premise is to start the habit early not to waste money on small
expenses, and instead to force yourself early to start saving and investing
regularly and automatically. There that's it. If everyone followed this simple
concept we would all retire comfortably. The amazing fact is that most people
- The Automatic Millionaire
by David Bach. His book is short, an easy read, and incredibly plain and
obvious as the easy path for long term success.
- The Wealthy Barber by David Chilton. Another easy read, that spells it out
very similarly to Bach's book. It speaks from the point of view of a wise barber
who doles out the "secrets" of his success. In reality his secrets are all a lot
of common sense, if people would just follow it.
For Freelance Artists, Self-Employed and Part-Timers
Here is a personal finance book just for all of you trying to make it on your
own! It is an easy read with specific suggestions for people who earn income
without working at a conventional employee job.
General Purpose Personal Finance
These thick and substantial books are bit more daunting for your novice investor,
but they are all chock full of all the latest information on all the investment,
insurance, tax and estate planning topics you can think of. My suggestion is to
read as many of these as possible and come to your own conclusions, since all
authors add their own weird biases to every topic. The more different views
you read, the better off you become. They all agree on 90% of all subjects, but
that extra 10% difference can be quite interesting (and entertaining!).
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