Recommendations for books on personal finance

[DentalPearls]

Advertisement - Members don't see this ad

Now that I have more substantial earnings, I am investigating my investment options. I have some debts but I am not going to let it get in the way of my investing. I want to slowly build my investments starting now. As the saying goes, "Rome wasn't built in one day!"

In my case, it is even more important that I rely on my own money because I am a single woman and I don't want to financially depend on anyone.

A friend of mine lent me her copy of "Smart Women Finish Rich - 9 Steps To Achieving Financial Security and Funding Your Dreams" by David Bach, National Bestselling Author of The Automatic Millionaire.

Anyone have other suggestions on good books related to playing the stock market and investing in the real estate market? Thanks.

 

[LADoc00]

Now that I have more substantial earnings, I am investigating my investment options. I have some debts but I am not going to let it get in the way of my investing. I want to slowly build my investments starting now. As the saying goes, "Rome wasn't built in one day!"

In my case, it is even more important that I rely on my own money because I am a single woman and I don't want to financially depend on anyone.

A friend of mine lent me her copy of "Smart Women Finish Rich" by David Bach, National Bestselling Author of The Automatic Millionaire.

Anyone have other suggestions on good books related to playing the stock market and investing in the real estate market? Thanks.

The Bach books suck IMO, Ive read most of them. They are long on BS and short on specifics. One of the main problems is the supposed experts so vocally disagree on investment strategies. For the next few years Im sitting tight, staying liquid with minimal debt and seeing what will happen with real estate and interest rates.

 

[etf]

it's interesting that you mentioned "playing" the stock market vs. "investing" in real estate. i obviously understand why this is - it only takes 1 second for you to buy/sell a stock, whereas housing takes a while to sell. anyway, the sooner you start equating equities as part ownership in a business instead of just pieces of paper (or nowadays, numbers on your statement), the better off you'll be.

i second LAdoc in saying that books written by bach, kiyosaki, etc are generally trash, but i guess you have to start somewhere. in my opinion, the best way to start is to read some of warren buffett's chairman letters. http://www.berkshirehathaway.com/letters/letters.html
once you understand what you're getting into better, you'll be able to better evaluate potential investments.

 

[DentalPearls]

I am primarily interested in investing in real estate. An uncle of mine, who happens to be a surgeon, got incredibly wealthy by investing in land. I think I should eventually investigate which future sites of land development have high return potential.

Despite having debts, I think it is still possible to invest a little at a time. I will probably get a consultation with a financial adviser in the near future. I need to set some goals for myself.

 

[DentalPearls]

Thanks!

 

[Jocomama]

Writers are writing, whereas real estate investors, are investing.

Here's what you need to know:

1) Start simple and slow. Buy your own house first.

2) Make sure your retirement is being grown (IRA, SEP, 401 - whatever if available to your current work)

3) Make sure you have liquid available:
A) Tax free muni bonds are paying 5% tax free now
B) Simple, mixed income funds - if you get steady 8%-10%; BE HAPPY
C) Money market, or even short (<12 month) CD at >5.5%

4) Make-up? After paying mortgage, bills, food, etc - what can you save?
Of the total you can save:
A) <25% retirement now
B) 50% into Tax Free Munis and the mixed income, or dividend fund (Fidelity, Vanguard - keep in simple)
C) 25% into money market.

5) Rental Property.

See new posts on buying rental property

Thanks!

 

[etf]

Writers are writing, whereas real estate investors, are investing.

Here's what you need to know:

1) Start simple and slow. Buy your own house first.

2) Make sure your retirement is being grown (IRA, SEP, 401 - whatever if available to your current work)

3) Make sure you have liquid available:
A) Tax free muni bonds are paying 5% tax free now
B) Simple, mixed income funds - if you get steady 8%-10%; BE HAPPY
C) Money market, or even short (<12 month) CD at >5.5%

4) Make-up? After paying mortgage, bills, food, etc - what can you save?
Of the total you can save:
A) <25% retirement now
B) 50% into Tax Free Munis and the mixed income, or dividend fund (Fidelity, Vanguard - keep in simple)
C) 25% into money market.

5) Rental Property.

See new posts on buying rental property

while you might want to maintain a cash position in the short to medium-term for something like a down-payment on a house, or maybe an "emergency fund" I would argue that at this point in most people's lives (meaning 22-35 year-olds just starting their career) that the way to go would be somewhere around 80-90% equity. from what I understand, things like municipal bonds (and fixed income in general) are for people who are trying to preserve wealth (or generate income), not create it. this is essentially what peter lynch says - for those of us with really long time horizons, stocks are the way to go. once you get closer to retirement, and are in a higher tax bracket where taxes actually matter, you might then want to considering shifting into fixed income. but I think for now young people have time on their side, and should take advantage of it.

 

[Doctor]

Despite having debts, I think it is still possible to invest a little at a time. I will probably get a consultation with a financial adviser in the near future. I need to set some goals for myself.

The historical return of the stock market is 10.5% ... if your loans have a lower interest rate than 10.5%, it makes sense to put as much as possible into low-expense stock investments like Vanguard's 500 Index Fund. No need to waste money on a financial adviser (and most of my friends are in that industry) when low-expense index funds exist.

 

[The White Coat Investor]

Start with one of these:

The CoffeeHouse Investor
The Boglehead's Guide to Investing
The Only Investing Guide You'll Ever Need

Then move on to one of these if you're still interested:

Common Sense on Mutual Funds
All about Asset Allocation
Unconventional Success

Each of those books will refer you to other good books. You might also check out the reading list at diehards.org, home of the friendliest and most active individual investing forum on the web.

Good luck investing.

 

[Irregular]

I don't have a review on this book, since I just started reading it myself, so just a recommedation would be:

Nice Girls Don't Get Rich: 75 Avoidable Mistakes Women Make with Money

Very catchy title. So far what I'm getting from the book is that as girls growing up, we don't get the same kind of money advice as boys do. We're encouraged to marry rich but investing on our own is rarely encouraged.