Personal Finance Book List: Edition #4
I love to read and recommending books to others is a privilege. Today I want to introduce you to some more fantastic books that I’ve read recently, to read on your personal finance journey. They cover a range of topics from understanding the role your emotions play in your financial life, to getting started with investing for the very first time.
Financial Autonomy — Paul Benson
Being financially wealthy — rich in the classic Scrooge McDuck sense — is not the end point most of us seek. What we’re actually seeking is choice.
Choice in how much time we give to income-producing activities.
Choice about what those income-producing activities are.
Choice about where we live.
Choice about when we retire.
Choice about the ways we use our money to produce happiness.
I met Paul back in 2019 and was impressed by his passion for high quality financial advice, which he provides through his financial planning firm and the Financial Autonomy podcast.
I’d highly recommend giving this book to someone who’s already familiar with the basics of personal finance and is looking to take greater control of their financial future.
Shareplicity — Danielle Ecuyer
If you’re someone who is looking to learn more about investing directly in ASX-listed shares, I’d recommend giving Shareplicity a shot. From strategies to research new companies to the common errors new investors make, Danielle provides a concise overview on investing in Australian companies.
The Psychology of Money — Morgan Housel
I would have to say this would be my number one pick of the new releases from 2020! The Psychology of Money provides a perfect complement to something like The Barefoot Investor, because it talks about the stories and ideas behind money and investing, giving you new ways to think about your relationship and history with money.
We tend to judge wealth by what we see, because that’s the information we have in front of us. We can’t see people’s bank accounts or brokerage statements. So we rely on outward appearances to gauge financial success. Cars. Homes. Instagram photos. Modern capitalism makes helping people fake it until they make it a cherished industry.
But the truth is that wealth is what you don’t see. Wealth is the nice cars not purchased. The diamonds not bought. The watches not worn, the clothes forgone and the first-class upgrade declined. Wealth is financial assets that haven’t yet been converted into the stuff you see.
Money School — Lacey Filipich
A lot of advertising and media about the banking, finance and superannuation industries can make you feel unqualified to manage your own money. It looks too hard, too complicated, too overwhelming. The jargon sounds like a foreign language, so you feel you need a translator.
You might worry you’ll make a mistake or miss an opportunity because you’re not an industry expert. That’s enough to put most people off. We’d rather pay someone to do it just so we don’t have to think about it or spend the time to get up to speed, or simply so we sleep better knowing an expert has us covered.
But when you boil it down, there are only three rules worth knowing in personal finance. They are:
Save. Buy assets. Avoid bad debt.
If you’ve got someone in your life that may be intrigued by the financial independence (FIRE) movement and becoming time rich, then Money School would be my pick. Lacey talks about the concept of financial independence through a uniquely Australian lens, and shares her own story candidly throughout the book.
If you’re keen to hear from Lacey before you buy, I had the opportunity to speak to her earlier this year on The Australian Finance Podcast!
Feel free to let me know your favourite personal finance books in the comments below.
Until next time,
Kate
