By Angela Dorsey
Reading the best financial books can do wonders for your net worth and financial confidence. As a financial advisor, I have read many books and believe in the power of knowledge and continuous learning. Here are 10 of my all-time best financial books that currently sit on my bookshelf and stand the test of time.
This book talks about how most millionaires in the United States are created. Millionaires aren't made by exceptionally high incomes. Most are average people with very good incomes who are diligent about not overspending and investing long-term. Many are small business owners who live in the same house for 40 years and don't spend much on new cars or fancy suits. Approximately 80% are first-generation millionaires who did not get their wealth from big inheritances or winning the lottery.
A list of the best financial books wouldn't be complete without Think and Grow Rich. This is perhaps the greatest personal development book ever published. Success comes from clearly knowing what you want to achieve and having a burning desire to achieve it. This book was published in 1937, during the Great Depression; however, it contains timeless information, great words of wisdom, and excellent advice.
This book talks about the importance of financial education, financial independence, and building wealth through investing in assets, real estate, and owning businesses. In this book, the author explains how his biological father's attitude toward money kept him struggling financially throughout his life. His friend’s father held a different perspective and became wealthy. Then, at a young age, the author had to decide which dad he should follow. He ultimately followed the path of the rich dad and prospered financially.
In this book, the author explains that the market is highly efficient, and no one can accurately predict its ups and downs; it’s a “random walk.” So, the best approach is passive, “buy and hold” investing using diversified index funds held long-term. The author makes a compelling case that active investors generally underperform passive investors because they fail to time their buys and sales correctly and incur transaction fees and taxes on their gains.
This book clearly explains the basic guidelines for becoming a millionaire and taking time to enjoy the little things. This book is filled with great advice, fun stories, and sound principles in a motivational tone. The wisdom and sound financial advice in this book are practical and easy to read. One of my all-time favorites!
As a financial advisor for women, I feel passionate about financial education for women. Women live longer and are more likely to live alone later in life. Our retirement savings tend to be lower than for men, and we often take time out of the workplace to care for children or elderly relatives. Though educated and successful, women often lack confidence in their ability to make financial decisions. The author discusses the difference between how men and women think. Finally, she provides insight and guidance for women to move through the process of personal finance to help them ask better questions and make better choices.
This book targets women and provides a great overview of many areas of personal finances that should be addressed. The author breaks her book down into several parts so you can take them a step at a time, taking complex money matters and simplifying them into easily understood paragraphs. Suze Orman's books are easy to read, and her words are empowering to all women.
The author provides a comprehensive retirement guide with tips on budgeting, Social Security, Medicare, Medigap, ACA, reverse mortgages, long-term care insurance, and withdrawal rates. You don't have to retire in 5 years to enjoy this book. You just want to be able to retire on your terms and when you are emotionally ready.
This book is great for brand-new investors as well as seasoned investors. The author keeps it simple and boils it all down to three principles: 1. Don’t put all your eggs in one basket. 2. There’s no such thing as a free lunch. 3. Save for a rainy day.
One of the most comprehensive books on retirement planning, it's focused on planning for retirement and optimizing spending and taxes after retiring. Beware: it can be quite technical. You will learn more about retirement planning by reading this book than most books covering this topic. Highly recommended for the more advanced investor.
I hope you enjoyed this list of my 10 best financial books. It doesn’t include all the books I love—there are simply too many to mention!
Angela Dorsey is the founder and financial advisor at Dorsey Wealth Management, a fee-only financial planning firm helping women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a CERTIFIED FINANCIAL PLANNER™ professional and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.