While there is a ton of great financial information on the internet, I still think the best way for a beginner to learn how to invest is to read a book. It’s by far the most efficient way to understand all the history and research behind why people like me promote low-cost index fund investing. The more you know, the less you’ll be tempted to pay high fees or chase hot stocks.
By my count, I have read and reviewed 24 financial books so far. Here are my picks. They would make a great gift or simply provide some useful reading during holiday downtime. I own all of these books, and they were some of the best money I’ve ever spent.
Best Beginner Personal Finance Book
|The Richest Man in Babylon:Short and very easy to read. Teaches the merits of living below your means and investing the rest for the future. [my full review]|
Best Starter Investing Book
|A Random Walk Down Wall Street: Provides a great frame of reference for investing, giving a history of the markets and laying out clearly the surprising findings that monkeys can beat Wall Street. [my full review]|
Best Overall Investing Book
|The Four Pillars of Investing: If you’re just going to read one book on investing, this should be it. Thorough yet concise. [my full review]|
There are a lot of great books in this arena, these are just my personal favorites. Read the reviews on Amazon (and maybe use your free Prime membership). Be sure to look on Half.com, Overstock.com, or Froogle to get a better price (take into account shipping), or check them out from your local library.
I also recently ran across another reading list at AltruistFA.com, which has expanded my own To-Read list further.