What we’re reading this summer

Countless financial books promise to make you a more intelligent investor, an expert budgeter, or a money guru. But which ones contain solid advice, and which ones should you pass over? There are so many options that it’s hard to tell.

Here, we highlight five financial books that have stood the test of time. These books were written more than twenty years ago, but the information is still relevant today. Sound financial habits and strategies never go out of style. We also share two newer titles from local authors that provide some insights on ways to invest in New Zealand.

Rich Dad, Poor Dad

Robert Kiyosaki’s Rich Dad, Poor Dad, was originally published in 1997, but it remains one of the most popular books for investors today. The book outlines the dichotomy of two fathers: one who makes intelligent financial decisions (rich dad) and one who doesn’t (poor dad).¹

Not only does it offer practical investment tips, but it also addresses our financial habits and how these habits can make or break our success. Becoming financially literate is the first step to becoming a successful investor, and Rich Dad Poor Dad breaks this financial literacy down in an easy-to-understand format.

Think and Grow Rich

Think and Grow Rich by Napoleon Hill was originally published in 1937 and republished in 2016. Its original publication followed the Great Depression and was well-received because it provided specific steps to achieve wealth. It also endorses a philosophy of positive thinking, which many Americans needed at the time (and still need today). Its life-changing tips are timeless and can be applied to modern-day investors just as well as they were used decades ago.²

The Intelligent Investor

Initially published in 1949, The Intelligent Investor by Benjamin Graham focuses on the philosophy of “value investing,” the practice of buying an investment that appears to be underpriced relative to its value. For example, a value investor might buy a stock that has a lower price-to-earnings (PE) ratio, which can help illustrate how expensive a company is in relation to its earnings.³

Throughout the years since the book’s publication, market developments have proven the wisdom of Graham’s strategies, making this a financial book that has truly stood the test of time.

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

The Millionaire Next Door by Thomas Stanley was published in 1995, and while it includes some dated references (no one has a Sears credit card nowadays), the principles in the book are still worth examining. The premise of this one is that wealthy people spend less on frivolous expenses—like cars and watches and huge mansions—and spend more of their time investing in appreciating assets to grow more prosperous.

Some of the findings are surprising because you wouldn’t expect a millionaire or multi-millionaire to drive the least expensive car on the block. Still, these small choices are how the rich grow richer and why the middle classes often live paycheck-to-paycheck. This is another book that will help you examine your financial literacy and habits.⁴

The Richest Man in Babylon

Who knew we could learn so many sound financial lessons from the ancients? George Clason did this when he wrote The Richest Man in Babylon in 1926! Many readers consider this book “the greatest of all inspirational works on thrift, financial planning, and personal wealth.” In it, readers will learn about the famous Babylonian parables, which help outline these concepts in an easy-to-understand way.⁵

Our list wouldn’t be complete without mentioning a few recent releases:

Girls That Invest

The meteoric rise of Kiwi author and podcaster Simran Kaur places her notable debut on the list. A great read pitched to young women who may feel too intimidated to ask questions. This book provides information for anyone looking to start their investment journey with a DIY approach. Simran teaches the essential principles you can apply to any market anywhere in the world. ⁶

A Richer You: How to Make the Most of Your Money

Bestselling author and New Zealand’s most trusted financial expert, Mary Holm’s latest book discusses how to make your money work in the real world. Mary breaks the book down into five sections: basics, investments, the best ways to invest, retirement, and people stuff.

Whether you read about finance from a Great Depression author or a contemporary, learning about healthy financial habits can help set you on the path to financial success and well-being.

20 December 2022

Disclaimer: This article is general information and does not consider your financial situation or goals and does not constitute personalised advice. There are no warranties, expressed or implied, regarding the accuracy or completeness of any information included as part of this article.

Share This Post