Ten Books That Will Make You a Better Person

I started saving money and got serious about my finances when I was 25 years old.  I was still in school finishing my graduate studies.  As most students, I did not have a lot of discretionary cash, and I remember going to Barnes and Nobel (when brick and mortar stores where still a thing), and reading as many books on finance and investing as I could.  Today I will try to distill all the books that I have read over the last 20 years or so into 10.

Let me first state that on any journey or life endeavor, you have to start with a purpose, your purpose has to be so clear and so strong that you will not be stopped when facing challenges or disappointments (and you will, believe me).  Things will not always go your way, disappointments will come, reasons to quite will be abundant, the lure to buy things and spend the money you have saved will be constant.  All along, you will be armed with a strong will and a resolve to stay the course because you have clarity on why you re doing this.  For this reason, it is a combination of psychology and knowledge, and neither one is more important than the other, if nothing else, perhaps psychology would get the upper hand.  Psychology is about clearly defining why you want what you want, and having a vivid vision of where you want to be and who you want to be in the future.  Reasons come first, answers will come second, and as one of my mentors told me early in my career: “If you why is big enough, the how will take care of itself.”

With that let me start with my list of books that will help you develop your mindset, and will give you tools to remain strong:

1.- Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Do Not!; A classic and best seller by Robert Kiyosaki.  This book summarizes the concept behind an asset and a liability, and how cashflow producing assets are king.

2.- The Richest Man in Babylon:  Building wealth is not new, it goes as far back as the Persians and Sumerians.  George S. Clason teaches in this short book a number of concepts that we must keep in mind in our road to wealth.

3.- Think and Grow Rich: A classic by Napoleon Hill.

4.- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy:  This book came out in the 90’s and it is as relevant today as it was back then.  Wealthy people are not necessarily the ones that you see driving the nicest cars and having the biggest houses.

5.-  The Geometry of Wealth: How to Shape a Life of Money and Meaning:  Brian Portnoy draws you to reflect on the true meaning of money and wealth.

In addition to having a purpose, it is also important to have some tools that will help you along the road.  I must admit that there are lots and lots of books with financial advice.  I am listing some of the best books that I have read and with sound advice to help you get started and continue on your road to personal financial success.  The books are listed in order from basic to more advance content, but does not mean that one is better than another.

1.- The Total Money Makeover: A Proven Plan for Financial Fitness; written by Dave Ramsey.  The book contains solid financial advice in easy to understand terms.

2.-  The Money Book for the Young Fabulous and Broke;  This book is one of Suze Orman’s first books.  It may contain advice that at times is similar to Dave Ramsey’s.  Nonetheless, if you consider yourself inexperienced in the topic, this is a great book to get you started.

3.-  MONEY Mater the Game: 7 Simple Steps to Financial Freedom; By Tony Robbins, this book is excellent, it is more than 600 pages long, but worth every page.  Tony give very sound financial advice, and discloses secrets from his interviews with world acclaimed investors.  If you have to pick only one book, this would be my choice, it is a mixture of basic and intermediate topics.

4.- The Motley Fool Investment Guide:How the Fools Beat Wall Street’s Wise Men and How You Can Too;  I must admit that the motley fools does more to educate the common individual such as you and me than anyone else.The book, written by Tom and David Gardner will teach you in a very easy way what you need to know to start investing in stocks, bonds, and funds.

5.-  Bull’s Eye Investing: Targeting Real Returns in a Smoke and Mirrors Market;  I cannot finish my list without recommending John Mauldin’s book.  The book is not new, but contains advice that is just as relevant today as it was when it was published.  John is a great writer and very candid and forthcoming with his advice.  I would say, this book is perhaps a little more advance than the others, but if you read it, you will gain precious advice on how the markets really work.

In the end, the important aspect is to have a clear goal, live below your means, save, invest wisely your money, and wait for it to compound.  I hope my book recommendations help you become a better investor and a better person.