Investing Books for Beginners: My Recommendations

If you’re new to the investing world, it can be a bit overwhelming to get started on the path towards financial freedom. There are plenty of helpful blogs out there, such as Mr. Money Mustache, Wise Bread, or The Simple Dollar but it can be difficult to get the “big picture” while you’re scrolling around from post to post at random. It’s perhaps a much better choice to read a book because you get the total picture instead of little snippets. Here are my favorite investing books for beginners, in no particular order (click on the pictures to get the book on Amazon):

The Wealthy Barber Returns: David Chilton

If you’re Canadian, The Wealthy Barber Returns is pure gold because it is written for the total beginner and contains a wealth of practical information that is easily understable. It contains a good mix of entertainment and knowledge such that is an easy read, as far as financial books go.

The Millionaire Next Door: Thomas J. Stanley

The author of this book spent many years interviewing the financial elite of the world and has come up with 7 rules that the average person can follow in order to be rich as well. My favorite tip is to live well below your means, which I’ve talked about numerous times on this blog and what I tell my friends all the time.

The Money Book for the Young, Fabulous, and Broke: Suze Orman

Suze Orman, famous from her TV show with the same name is known for no-nonsense, practical advice for her listeners and this book follows the same path. While she is hard-hitting, she makes it clear that young people in their twenties or thirties still have time to correct their paths and get their financial houses in order. She gears this book towards the financially illiterate, and while almost anyone could benefit from it, those who will find it most useful are younger Americans.

The Little Book of Common Sense Investing: John Bogle

This book is an absolute classic in the investment world and Bogle makes the case as to why you should own an index fund (a collection of stocks) instead of trying to pick and choose individual stocks, with the hope that you will find the winners and not the losers. History has shown that this is very difficult, if not impossible to do so Bogle’s advice makes a lot of sense.

One Up on Wall Street: Peter Lynch

At one million copies sold, you know that this book has a lot going for it. He takes you through the process of investing, step by step, starting with paying attention to what is happening around you and what products are popular and useful. Then he moves on to how to analyze a stock and finally helps you to figure out if that stock is rising or falling. He advocates investing in companies you understand (just like Warren Buffet).

The Global Expatriates Guide to Investing: Andrew Hallam

If you’re an expat, this is a must-read book. Although it is a bit technical in parts, even the beginner should be able to understand most of it. I’ve already reviewed the book here.

The Wealthy English Teacher: Jackie Bolen

If you’re an English teacher abroad, this is the book for you. It goes through 10 steps to financial freedom including choosing a job wisely, building an emergency fund, paying off debts, investing, planning for the future and more.

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