Books that can put you in charge, financially
Date: 01 Jan 2009
Welcome to Money Matters 2009! Our aim this year is to continue providing you with information that will help you to make the most of your money. To get the year off to a good start, we have compiled a list of books that we think provide valuable information and advice for people who really want to be in control of their personal finances. Here are our choices: - The Richest Man in Babylon by George S. Clason
- The Millionaire Next Door by Thomas J. Stanley and William D. Danko
- Retire Right (2nd edition) by Bruce Cameron
- Shares: A Buyer's Guide by Alec Hogg
- The Richest Man in Babylon by George S. Clason
The Richest Man in Babylon by George S. Clason This book is in a league of its own. It was first published in 1926 (!) and has enjoyed several reprints since then. But it has never been updated, because, quite simply, it contains basic, time-honoured truths about financial gain that are as valid now as they were when the book was written. Told in a series of parables, The Richest Man in Babylon is about the bearer of that title: Arkad. The Babylonian men who grew up with him and knew him as an ordinary person, cannot understand how he became so wealthy. And so they gather one day to hear his advice on gaining riches. They are expecting something complicated, and are intrigued to discover that the financial principles by which Arkad lives are very simple - and very profound. The book illustrates that anyone, no matter how lowly their occupation, can make a fortune by simply applying the principles with self-discipline. Why we like it: This is an ideal book for anyone who wishes to learn about the fundamental principles of financial management. Your kids will also love it. The Millionaire Next Door by Thomas J. Stanley and William D. Danko Stanley and Danko have spent years studying the lifestyles and spending habits of millionaires in America, and their results are astounding. The most profound discovery is that the wealthy are usually just "ordinary people". They are not pop stars or famous actors, they did not inherit huge amounts from their parents, and they do not always live in upmarket neighbourhoods. Using several case studies the authors show how people earning basic salaries such as plumbers, firemen and nurses, have created tidy fortunes for themselves by simply making some sound financial choices. The authors discovered seven common denominators that characterise those who successfully build wealth. Here are three: -
They live below their means. -
They believe that financial independence is more important than displaying high social status. -
They have brought up their children to be economically self-sufficient as adults.
Why we like it: It gives hope and advice to those who find themselves battling financially year after year and hoping to win the lottery. In fact, the authors address the issue of windfalls as well, having worked out that in the course of an adult's lifetime, the probability of becoming wealthy via a windfall is lower than one in four thousand. Far better to toss chance out the window and rather start practising the habits of the "Millionaire Next Door" - who could eventually be you!
Retire Right (2nd edition) by Bruce Cameron Planning for retirement does not start just before you retire - it is an ongoing process throughout one's career, yet very few people manage to retire financially secure. Bruce Cameron explains that retirement benefits offered by employers are not always enough for a comfortable standard of living in retirement. We need to take responsibility for our own retirement funding through savings and investments. Retire Right looks at everything that plays a role in planning a financially secure retirement - investments, taxation, retirement funds, life assurance, healthcare and estate planning. The revisions in this second edition include tax reforms and legislative changes, and new solutions for achieving a carefree retirement. Why we like it: This is a step-by-step guide that is extremely comprehensive, accessible, and easy to follow. Shares: A Buyers' Guide (2009 updated edition) By Alec Hogg If you want to understand what caused the current market mayhem and figure out what to do with your money then Alec Hogg's Shares: A Buyers' Guide [2009 updated edition] is the book for you. The book is designed to give investors knowledge and depth to tackle the current markets with confidence. Technical jargon is carefully explained, and the "bigger picture" view of the stock market and the role it can play in your financial planning is well presented. Why we like it: It equips the starter investor with the necessary background and tools to understand the stock market, and because it is written by a South African, it is more relevant than many of the investment guides that come from overseas.
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