Get Rich Slowly

This article focuses on some of the best personal finance books without having to search for them…

I frequently get e-mail from people seeking book recommendations. Most messages are like the one Cody sent yesterday: “What is the first book that I should read that tells me how to invest?†These are easy to answer. In January, Bobby asked a broader question:

    I was wondering if you have a list of PF books that you have in your personal library. I use the library frequently and am very interested in furthering my own education in the PF area. It is also a personal goal for 2007 (one educational book a month.)

This is a great goal and a great question. Eventually I’ll have a subsection of this site devoted to personal finance books. But for today, I’ll list the books I refer to frequently. (These aren’t all the books I own — I own many that aren’t worth having.) I’ve marked the books I consider essential with a happy star *.

Please note that these recommendations are based on how well a particular book has worked for me. Your mileage may vary.

Basic Personal Finance

These books offer a wide view, discussing many aspects of money. They offer advice about saving, investing, and getting out of debt. They don’t go into much detail about any one subject, but they provide motivation to get started. And that’s what’s most important.

The Millionaire Next Door by Stanley and Danko

    The authors interview and survey a pool of millionaires, attempting to find common connections among them. They discover that millionaires live below their means. They budget. They let their adult children make it on their own. This book introduces several key concepts, including degrees of wealth accumulation. It’s a bit tedious in spots, at least in the audio version. This is one of just a few books to cover both sides of the wealth equation: saving money and earning money. [My review.] 

*Your Money or Your Life by Dominguez and Robin

    A classic, and one of the foundation books for the simplicity movement. The authors play off the concept “time is money†in a very literal sense. They encourage readers to sort out priorities, to cut expenses, and then to seek passive income in pursuit of financial independence. A little New Age-y in spots. An excellent book. [Frykitty reviewed this book last year.] 

*The Total Money Makeover by Dave Ramsey

    Ramsey is an anti-credit zealot. He made a $4 million fortune by his mid-twenties, and then lost it to bankruptcy. Now he runs a personal finance empire. He takes a lot of criticism for his support of the Debt Snowball, which he describes in detail here, but the thing is: his methods work. If you are struggling with debt, there is no better starting place than this book. Ramsey’s advice is permeated with his Christianity, but you can get a lot out of this book even if you’re not religious. 

The Wealthy Barber by David Chilton

    This book offers good, general personal finance advice in the guise of a novel. Several friends meet once a month at the barber shop where the titular character dispenses wisdom on saving, investing, buying a house, and so on. The advice here is excellent, often backed by clear examples. The book’s conversational tone may appeal to some who might otherwise be turned off by personal finance. [My review.] 

The Richest Man in Babylon by George Clason

    Clason offers personal finance wisdom in the form of parables. These nuggets of wisdom were originally distributed as pamphlets at banks and insurance companies during the 1920s. The most popular were collected into book form. This is the grand-daddy of personal finance (Benjamin Franklin is the great-granddaddy,null,null,null), and many of modern admonitions — “Pay yourself firstâ€, “Invest for the futureâ€, “Learn the power of compound interest†— can be found here. 

Frugality

Saving money is a key skill to develop if you hope to get rich. (Read The Millionaire Next Door if you don’t believe me.) Here are four books that can help you learn to cut corners, to save money in ways that may not have occurred to you.

How to Live Well Without Owning a Car by Chris Balish

    Balish begins by explaining why you’re better off not owning a car — financially, ecologically, and socially. He spends the rest of the book describing how to survive without one. He offers tips for mass transit, walking, bicycling, and more. This book has a narrow focus. But if you’re in its target audience, it’s worth a read. 

Miserly Moms by Jonni McCoy

    Don’t judge a book by its cover. Sometimes it’s the most unassuming of books that offers the best advice, that can actively help you on your quest to get rich slowly. Miserly Moms is ostensibly a guide for stay-at-home mothers, but is actually filled with useful tips for anyone who is concerned with frugality (especially parents with young children). [My review.] 

*The Joy of Simple Living by Jeff Davidson

    This book is packed with tips. Davidson covers a wide range of topics, and for each he offers several ways to save money. If this book were a weblog, it would feature digg-able entry after digg-able entry. A great resource for anyone wanting to cut down the clutter of life. 

Wealth on Minimal Wage by James Steamer

    If you’re a young adult just starting in life, this book is a fine choice. It offers hundreds of ideas on how to avoid debt, maximize your wages, save on insurance and utilities, and generally live a frugal lifestyle. A bit out of date, and maybe a little radical, but filled with good advice. (I’ve had a copy out from the public library for six months. It’s been battered and worn by previous patrons — a sure sign of a good book.)