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A couple months ago a friend on Facebook asked what books people recommended on various money topics.
Without batting an eye or even pausing a moment to reflect I immediately responded:
For retirement, How Much Money Do I Need to Retire?
by Todd R. Tresidder can’t be beat. Absolutely amazing!
For investing, The Bogleheads’ Guide to Investing
.
For general finance, The Millionaire Next Door
, Your Money or Your Life
, and The Richest Man in Babylon
.
Read those few, apply them, and you’ll be wealthy in a decade or so…
Surprises About Money Books
A few things surprised me about the response:
- How quickly it came. I must really believe this deep down because it was so natural and fast.
- There are only five. Sure, I could add another book or two here or there. But why do that? Just read these five and that’s it. Case closed.
- They are all old (except the retirement book). Hasn’t anyone written a good money book recently that can make the must-read list? If they have, I’ve certainly missed it.
- How simple it all is. I talk about how simple it is to become wealthy by following three steps. Reading five books is easy too, right? It’s so simple to become wealthy and yet most people don’t do it. It’s kind of sad.
- Could I make the list shorter if I had to? Yes. I’d probably keep the first two and pick one of the last three if the person wanted a well-rounded view of finance.
- Is it true? Can you really “read those few, apply them, and you’ll be wealthy in a decade or so?”
I’m still kind of amazed how it all just blurted out so quickly.
Ranking the Best Money Books
Then I began to wonder how I would rank the books in order of importance. Here’s what I came up with:
#5 How Much Money Do I Need to Retire? The best book I’ve ever read on retirement. But if I have to rank them, it’s just not general enough to rank higher.
#4 The Bogleheads’ Guide to Investing Same as above — not general enough. But investing is vital and comes before retirement, so this gets listed a notch higher.
#3 Your Money or Your Life It’s a bit philosophical and less practical than the other two remaining. I prefer straight-to-the-point no-nonsense books. Many people like this book because it’s a bit more touchy feely.
#2 The Millionaire Next Door This is my personal favorite and the book that made the most difference in my life. I think it can do the same for others too. But the other book edges it out for most people IMO.
#1 The Richest Man in Babylon Short read, told as a story (easy read), very practical, and inexpensive. That’s what makes this book the top choice in my opinion.
Reviews of the Top Five Money Books
For those of you who may not have heard of these books, I’ve either reviewed or written about all of them on this site.
Here are the posts that give you more information about each of them:
- The Best Personal Finance Books of All Time: Your Money or Your Life
- The Best Personal Finance Books of All Time: Bogleheads’ Guide to Investing
- The Best Personal Finance Books of All Time: The Richest Man in Babylon
- The Best Personal Finance Books of All Time: The Millionaire Next Door
- Four Steps to Determine Your Retirement Number
Can the List Be Better?
Now that I’ve had my say, here are a few questions for you:
- Do you agree with my list or are there others you’d have instead?
- Is it true that a person can “read those few, apply them, and be wealthy in a decade or so?”
- Are there any newly published books (within the last three years) that rank even close to these?
- What do you think of my ranking? Good or does it need work?
Please leave your thoughts in the comments below.
photo credit: byzantiumbooks Old Books via photopin (license)
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Comments
Aaron saysI think a book about how to make more money would be useful. Like “The $100 Startup” or “Rich Dad, Poor Dad.”
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I second these picks as well! Both of them really change your psychology, how you think about money.
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I recently read “How to Think about Money” by Jonathan Clements. He was a financial journalist for 25 years and wrote the book mostly on the “personal” side of personal finance.
He keeps it simple: invest in low cost funds, spend money on things which will bring you pleasure, focus on the long term (our investment horizons are 20-30 years), and we should focus on not taking too much risk.
It was a quick ~145 page book. I enjoyed it. I will have to check out the ones you listed above!
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- ESI says
I will have to check that one out. I love Jonathan’s writing and philosophy.
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- Ingrid says
Two books that are more recent and I thought quite good. The Simple Path to Wealth by JL Collins and How to Make Your Money Last by Jane Bryant Quinn. Did you read those?
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- ESI says
Yes, I’ve read both!
Shortly after writing this post (a couple weeks ago) I ran into A Simple Path to Wealth and loved it. I have a post coming up on how it MIGHT crack the top five.
The other book was “ok” IMO. Not bad but not great either. There were some gems in it and I’ll post them one day.
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- JayCeezy says
The one gem that stood out to me in Jane Bryant Quinn’s book is one I have borrowed frequently: “Whatever your situation, happiness lies in letting go of the past. All that matters now is who you are in the moment.” – Jane Bryant Quinn
Great list, ESI! My own thought on ‘reading’ about any Investing, is that it must come third. Your own name and website have rightly pointed out to me that Earning and Saving are first and second.
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- Ingrid says
The reason I liked Jane Bryant Quinn’s book is that it is very recent and comprehensive. Everything changes so fast and for the financial aspect of retirement I like something more up to date. Even the authors of Your Money or Your Life had to change the financial advice they give in their latest edition. The philosophy stays the same, though 🙂
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- Jenna VanLeeuwen says
Darrow Kirkpatrick’s book Can I Retire Yet? was really, really good. I haven’t read Todd’s book, but it might be similar to that one.
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- ESI says
Great! I will check it out!
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- ESI says
Perhaps I’ll do a follow up post covering all the books ESI Money readers suggest that aren’t on my list. 🙂
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- Mr. RIP says
Amazing list!
Read 3 out of 5 of your recommended books!
I’d add Early Retirement Extreme to your list and then we’re done 🙂Reply
- Coopersmith says
Will need to check out #5.
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- FIscovery says
I like the selections and may actually pick the one up on retirement, but I am planning first to get Darrow Kirkpatrick’s book ‘Can I Retire Yet?’
Quite surprised not to see these two on your list — maybe if you go with a top 10 😉
A Random Walk Down Wall Street – – Burton G. Malkiel
The Little Book of Common Sense Investing – – John C. BogleI found both fascinating and I believe following what they preach will lead you to the pot of gold (not sure in 10 years though).
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- ESI says
Those might have made the list, but what do they add that the Boglehead’s book doesn’t cover?
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- FIscovery says
A Random Walk Down Wall Street may be all about index investing, but has a slightly different take on international stocks and asset allocation (see chapter 14, A life-cycle guide to investing) – – Bogleheads sure is much of the Bogle philosophy, but nothing like getting it first hand from the man himself (along with the ‘don’t take my word for it’ at the end of each chapter).
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- Brem says
Buffett -The Making Of An American Capitalist by Roger Lowenstein, it was written in 1995 so not a modern book but if you have an interest in money and business it was a great read.
Another book I think every investor should read is Your Money And Your Brain by Jason Zweig.
This book explains why smart people can make stupid decisions about money, its original well researched and practical.Reply
- Lisa says
The Total Money Makeover by Dave Ramsey changed my life. His book started me on my journey to financial independence. Without that book, I would not be where I am today. I will always be grateful to Ramsey for the book.
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- Lisa says
I agree! (And not just because we have the same name ;)) I’ve got to check out these other books, too!
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- Darby Mori says
The Total Money Makeover is an awesome book. Accessable to ‘normal’ people. It’s the information my parents tried to teach me (they are millionaires now), but Dave explains it better (sorry Mom). I also love The Richest Man in BabylonTony. I bought a copy for my 9 yr old to read too.
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- Make Wealth Simple says
Great suggestions! I’ve only read 1 of these on the list, so I’m going to have a look at the other ones too.
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- Laura Tokgozoglu says
Great list! I have read 4/5! I really liked Rich Dad Poor Dad too!
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- Todd Tresidder says
I’m honored that my book made this list. It’s in great company. Thank you so much!
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- Chris D says
I would add Ric Edelman’s The Truth About Money. Covers all facets.
I agree wholeheartedly about Dr. Stanley’s Millionaire Next Door. Best read early in life. Great graduation gift. Audiobook for ‘non-readers’.
I’ve consumed many, many financial/business books over the years. There is a lot of ‘fluff’ out there, and a great percentage don’t make lasting impact. The ones you mention do.
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- Chris D says
P.S> The Peter Lynch books are good as well, focus on stock investing.
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- sendaiben says
Random Walk, and also Millionaire Teacher, by Andrew Hallam.
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- ArmyDoc says
Andrew Tobias’ “The Only Investment Guide You Will Ever Need” – I love this book mostly because I encountered it earliest in my life, but also it covers all of your “ESI” points in fun, easy detail. Promotes savings, warns against lifestyle creep, got me started with Vanguard funds.
I do love your top 5 books also.
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- Michael Mroczka says
The Best Money Books Are All Simple, Very Easy to Read & Understand.
1) The Simple Path to Wealth by J. L. Collins Teaches you how to invest & it is my personal Money Bible – THE BEST MONEY BOOK.
2) The Millionaire Next Door
3) The Richest Man in Babylon
4) Rich Dad Poor Dad
5) Buckets of Money
6) How to Win Friends & Influence PeopleReply
- Debbie says
Ah, “How to Win Friends & Influence People” was the big influence on Warren Buffett. His diploma from Dale Carnegie course is the only diploma hanging in his office. That says a lot to me!
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- WealthyDoc says
A hundred other books come to mind, but folks won’t go too wrong if they stick to just this list!
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- Fred S. says
Great list!
I read How Much Money Do I Need to Retire? by Todd R. Tresidder during a recent vacation, based on a previous ESI recommendation. Very informative.
I’m currently reading The Bogleheads’ Guide to Investing. So far, seems like review, but I’ll plow through it based on the ESI recommendation.
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- Fred S. says
PS – a couple of books to mention, that would make my Top 10:
You Have More Than You Think by David & Tom Gardner (aka the “Motley Fools”) – this was the first personal finance book that I read, received as a gift about 23 years ago, ignited my interest in personal finance as a hobby
Debt-Free Living by Larry Burkett (founder of Christian Financial Concepts, which is now Crown Financial Ministries) and Chuck Bentley
The Financial Planning Workbook: A Family Budgeting Guide by Larry Burkett
The Complete Guide to Managing Your Money by Larry Burkett
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- Fred S. says
PPS – The Automatic Millionaire (and Smart Couples Finish Rich) by David Bach are in my library as well. Great reads.
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- Frogdancer says
I’m glad to see that The Richest Man in Babylon made it to the top of the list. I gave 6 away at Christmas to my sons and nieces. 🙂
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- Roger Ferch says
I gave each of my grandchildren The Richest Man in Babylon and The Millionaire Next Door for Christmas They are the perfect age to get on the right path – 23, 20 and 19.
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- reed says
Any other suggestions for books for older teenagers, young adults? I am looking for a book that covers E (including work behavior, asking for raise, side hustles), S (and the “gap”), and I (including real estate). Millionaire Next Door has a lot of concepts but some areas is has too much info and other areas it has too little. Google finds a few books “for teens” and “students”, but I am not sure how they compare with this clear ESI website’s model.
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I have read three out of the five books on your list. About to add Boglehead’s and the retirement one. Thanks!
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Richest Man In Babylon all day every day!
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- Gerard says
One book that has not been mentioned in the article or the comments is I Will Teach You To Be Rich from Ramit Sehti. The biggest takeaway from his book in my opinion is still to automate stuff, especially the retirement contributions and the investing.
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- John says
Great list! I haven’t read the Tressider book, but the other four are excellent picks.
I would add Dave Ramsey’s “The Total Money Makeover.” It was the book that changed our lives. Ramsey’s concepts aren’t new or unique (and he’d be the first person to say it). But he adds two things that broke through my life-long shell of “I know what I’m doing” and transformed our lives:
1. A clear path to follow. Too many financial advisers would have you running in five directions at once — build up a full emergency fund AND pay down debt AND save for retirement AND invest. Ramsey’s “baby steps” are genius.
2. An emphasis on what actually works, rather than what the numbers say should work. Slightly sub-optimal (from a math perspective) advice that you will follow is far superior to optimal advice that you won’t.
Thanks for the article!
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- In-FIRE-ed says
I read Rick Rodgers “Don’t Retire Broke.” It scared me a little with his examples of how poor planning or poor decision-making wiped out years of strong savings in just minutes. Most people know the basics of Earning, Saving and Investing but they know little about taking distributions, inheritances and tax laws.
People forget the government is always broke, hungry and inventing new ways to separate us from our hard-earned money. They also forget traditional IRA and 401k money is tax-deferred, not tax-free. This book discussed strategies on how to protect your money once you’ve made it.
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- Brent Turner says
I read “Your Money or Your Life” and “The Richest Man In Babylon” many years ago. Great suggestions. I am currently working my way through “The Millionaire Mind” by the same author of “The Millionaire Nextdoor.” I would also add “The Wealthy Barber” to the list of simple, no-nonsense financial books. I am also a fan of the Robert Kiyosaki Rich Dad series of books.
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