Reading list: Best books on financial literacy and the right attitude to money (JANUARY 2022)

Best books on financial literacy and the right attitude to money

Financial literacy is the basis of a person’s material well-being in society. In the modern world, any head of a company, a private entrepreneur, any person must have a set of knowledge and skills in the field of finance.

The outdated education system leads to the fact that schools still do not have such a subject as “financial literacy”. And this is very bad because it is an important science about the following vital things for all:

  • planning a family budget;
  • rules of economy and savings;
  • distribution of income and expenses;
  • the laws of investment and capital gains.
Reading list: Best books on financial literacy and the right attitude to money

Our children continue to study algorithms at school, prove theorems, solve equations, which, as practice shows, will never come in handy. But one of the main algorithms for a successful life is work on the material, financial side of your life. How to properly manage your finances in order to live with dignity? If you do not know a clear answer to this question, spend your savings on liabilities, then it’s time to think about how to improve your financial literacy.

We read often about financial literacy and how important it is. But the advice that can be given in the articles is of a general nature. For greater coverage, article format is simply not enough. And if you are interested in finance and are going to invest or manage the family budget according to all the rules, books on a specific topic will help. To help you, we have prepared a selection of several books, each of which focuses on a different aspect of financial literacy.

If you are just starting your journey to financial independence, then these books are a must-read for everyone!

“Global Asset Allocation: A Survey of the World’s Top Asset Allocation Strategies” by Meb Faber. See it here on Amazon.

The author of the book is the Cambria exchange-traded fund manager. This is a well-known American financier who, in his book, talks in detail about 13 types of assets and the history of their profitability. Based on this analysis, the author draws conclusions on how to behave in order to mitigate the impact of inflation and drawdowns. He talks about the investment portfolios of successful financiers and suggests combining assets, including non-standard ones, such as real estate.

The book begins with an overview of the historical performance of popular assets such as stocks, bonds, and cash. The author shows the impact of inflation on your money. He then begins to examine how diversification by pooling assets, in this case a simple combination of stocks and bonds, works to mitigate the extreme drawdowns of risky asset classes.

But we’re going beyond the limited stock / bond portfolio and looking at a more global distribution that also takes into account real assets. He has tracked 13 assets and their performance since 1973, focusing on a number of well-known portfolios such as Ray Dalio’s all-weather portfolio, fund portfolio, Warren Buffett‘s offering and others. And after he finds that, with a few notable exceptions, many allocations have similar risks.

And yet, while we are all preoccupied with paying close attention to the specific asset allocation in our portfolio, the biggest impact on our portfolios can be that we don’t notice at all.

“Mastering the Market Cycle: Getting the Odds on Your Side” by Howard Marks. Available here.

We all know that markets rise and fall, but when should you exit and when should you stay? The answer is never black or white, but is best achieved through a deep understanding of the reasons behind the rhythm of the cycles. Confidence in where we are in the cycle comes when you study the boom and bust patterns that affect not only economies, markets, and companies, but also human psychology and investor behavior as a result.

By studying past cycles, understanding their origins, and being ready for the next, you will become responsive to the changing investment environment. You will be aware and prepared while others will be overwhelmed by unexpected events or fall prey to emotions such as fear and greed.

By following Mark’s insights, drawn in part from his iconic memoranda to Oaktree clients over the years, you can master these repetitive patterns so you can improve your results. This book is intended for experienced investors who have already researched the market and discovered these patterns. exist on it. They really are, but getting to them on your own is long and painful.

A book by Howard Marks, co-founder of Oaktree Capital Management, is about templates. The author talks about market cycles, what influences them and how to recognize fluctuations. It teaches you to understand what is happening on the market, to assess and feel the situation more subtly. This will help you invest smarter in the future and take into account more details.

“Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom” by Robert Kiyosaki. Buy it here.

This publication is devoted to the study of financial flows. How to control them by sending money to your wallet? It all depends on the perception of the world of a particular person! Someone likes to “work for an uncle”, while others like to manage a holding. How to change the course of the financial flow in your favor? You will find the answer in this source.

Have you ever wondered:

– what is the difference between a person working in a company and an owner of his own business;

– why some investors earn with little risk, while most others just go broke;

– why most employees move from one job to another, while others quit their jobs and go to build business empires;

– why in the industrial age most parents wanted their children to become doctors, accountants, lawyers, and in the information age, people of these professions are constantly experiencing financial difficulties.

This book will answer many questions and help you find your own path to financial freedom in a world of ever-increasing financial change.

“Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth” – by T. Harv Eker. See it here.

Have you ever wondered why some people seem to get rich easily, while others are doomed to live in financial hardship? Is there a difference in their education, intelligence, skills, time, work habits, contacts, luck, or their choice of work, business, or investment?

Shocking answer: none of the above! In his groundbreaking “Secrets of the Millionaire Mind”, T. Harv Eker states, “Give me five minutes and I can predict your financial future for the rest of your life!” Eker does this by defining your “money and success plan.”

Reading list: Best books on financial literacy and the right attitude to money

We all have a personal money plan deeply rooted in our subconscious, and it is this plan that most determines our financial life. You may know all about marketing, sales, negotiation, promotions, real estate and the world of finance, but if your financial plans are not geared towards a high level of success, you will never have much money – and if somehow you do, you are more likely to everything, lose it! The good news is that you can now actually dump your money plan in order to achieve natural and automatic success.

“Secrets of the Millionaire Mind” can be considered as two books in one. Part one explains how your monetary scheme works. Through Eker’s rare combination of street wit, humor, and warmth, you’ll discover how the influence of your childhood shaped your financial destiny. You will also learn how to define your own financial plan and “revise” it to not only succeed, but more importantly, to maintain and continually increase it.

In part two, you will discover seventeen “wealth files” that accurately describe how rich people think and act differently than most poor and middle class people. Each Wealth File includes actions you can practice in the real world to dramatically increase your income and accumulate wealth.

If your financial affairs are not going as well as you would like, you will have to change your financial plan. Unfortunately, your current monetary scheme will stay with you for the rest of your life, unless you define and revise it, which is exactly what you do with this unusual book. According to T. Harv Eker, it’s simple. If you think like rich people think and do what rich people do, chances are you will get rich too!

Shortly, in this creation, the author expressed an original point of view on the methods of achieving wealth. He considers human thinking to be the key to material well-being. The publication contains practical advice on how to learn to think correctly and achieve monetary success.

You will find out what they think, what they feel and how the richest people on the planet act, and most importantly, what prevents you from becoming one of them. The world’s first financial psychologist Harv Eker will help you figure out what your “financial program” is on a subconscious level and how it affects your current relationship with money.

By following his simple rules, you will reprogram yourself for much higher levels of income and achievement. You will learn how to properly manage your money, what are the sources of passive income and how, using such a phenomenon as “compound interest”, to increase your capital.

Pained by financial indecision? Want to invest with Adam?

Financial Planner - Adam Fayed

Adam is an internationally recognised author on financial matters, with over 354.2 million answers views on Quora.com and a widely sold book on Amazon

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