Here are a few of the best investing books for young young investors that I have found.
The One Thing – The Surprisingly Simple Truth Behind Extraordinary Results
by Gary Keller
This is the best book I have read this year. In this age of abundant information, there are so many things trying to grab our attention. At least for me, it is very hard to consistently stay focused on what’s most important to me. Keller proposes a very straightforward method to making sense of it all.
This book has widened my perspective and narrowed my focus; it is actually the reason that I started this website.
“Here’s what I found out: We overthink, overplan, and overanalyze our careers, our businesses, and our lives; that long hours are neither virtuous nor healthy; and that we usually succeed in spite of most of what we do, not because of it. I discovered that we can’t manage time, and that the key to success isn’t in all the things we do but in the handful of things we do well.” (loc 1020)
This book taught me that after all is said and done, we can always filter everything down to ONE THING that matters the most. And by doing that one thing, everything else becomes easier or even unnecessary.
“No matter how many to-dos you start with, you can always narrow it to one. Keep going. You can actually take 20 percent of the 20 percent of the 20 percent and continue until you get to the single most important thing! (See figure 5.) No matter the task, mission, or goal. Big or small. Start with as large a list as you want, but develop the mindset that you will whittle your way from there to the critical few and not stop until you end with the essential ONE. The imperative ONE. The ONE Thing.” (loc 372)
The Millionaire Next Door
by Thomas J. Stanley
I recommend this book because it eased my conscience. It debunks many millionaire myths by giving you the research, stats, and stories of people who have already become millionaires.
When you imagine a millionaire lifestyle, you might think of high-income spenders, the ones who act like they have a money tree in their backyard. You probably don’t think of high-income savers, who accumulate wealth by living below their means and investing patiently.
The truth is you can have shiny new cars, a mansion with imported furniture, and fancy clothes and still be broke.
The real millionaires don’t spend lavishly because they believe that financial independence is more important than displaying social status. They allocate their time, energy, and money efficiently, in ways that build wealth. They are no different than you our your next door neighbor.
Wealth is less about a luxurious lifestyle and “more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.” – Thomas J. Stanley
I Will Teach You To Be Rich
by Ramit Sethi
While there are many books that enlighten your mind with brilliant ideas and theories, I recommend this book because it details specific plans and systems that work. The author, Ramit Sethi, is very specific and straightforward about how you should manage your money. If you are just getting started with money management and have no idea where to start, I would start here.
Sethi encourages you to spend money on the things you love by organizing your spending into four “buckets”–fixed costs, investments, savings, and guilt-free spending money.
Since reading this book I have switched to a bank that gives me better interest rates and savings features, and I have set up an automated system for saving and investing money each month. I now know exactly where every dollar is going and how much I can afford to spend “guilt-free”.
This book’s approach is summarized best by this quote:
“Who wins at the end of the day? The self-satisfied people who heatedly debate some obscure details? Or the people who sidestep the entire debate and get started?” – Ramit Sethi
The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Smart Buy & Hold Real Estate Investing
by Brandon Turner
Out of all of the real estate books I have ever read, this is the most straightforward, down-to-earth, and applicable one.
From the weekly blog posts and podcasts to the ever active forums, BiggerPockets has been a life-changing resource for me. It’s THE social real estate network of the web. It’s free to get involved and get educated about all the important principles of real estate. The author of this book, Brandon Turner, is the voice of the podcasts and the author of many of the articles on BiggerPockets. He knows how to talk to beginners and gives excellent advice.
In this book you’ll learn how to build an achievable plan, find incredible deals, pay for your rentals, and more.
If you want to get started with real estate instead of thinking about all the possible ways to get started, this is a great book for you.