The best books to read to be smarter with money

There are thousands of resources online to learn about personal finance, a staggering amount of financial information, from free courses offered by colleges and education platforms to TikTok influencers and expert newsletters. This can make it difficult to identify the best budgeting, saving and investing resources, but the earlier a person begins their financial education, the greater the likelihood of wealth and success.

During the CNBC Invest in you virtual event, Finding Your Financial Success, in April 2021, a Rutgers University student asked a panel of personal finance experts about their picks for the best books to improve one’s money skills. Here is their recommended reading list.

Books about relationships and money

Anthony Chan, director and chief economist at JPMorgan Chase, cited two books, both focusing on personal relationships and finance.

Erin Lowry’s “Broke Millennial” is a step-by-step guide that illustrates how to evaluate your own understanding and relationship with money. Lowry shows readers how to get “financially naked” with their partners.

Chan also featured “The Big Payoff” by CNBC’s Sharon Epperson.

“I’m going to embarrass Sharon, but ‘The Big Payoff’ is one of my favorites,” he said.

In her book, Epperson explains how couples of all ages and all stages can realize their financial dreams together.

More from Invest in You:
Experts advise teens to take a careful hands-on approach to learning about crypto investing
How to make sure you take advantage of all the employer benefits to increase your wealth?
Here’s how to choose health insurance that fits your budget and life

Books about the money mindset

Lauryn Williams, a member of the CNBC advisory board, knows that the right mindset is essential to performing well. Williams was the first American woman to medal at both the Summer and Winter Olympics.

“You know, as a sports enthusiast, we need to get our minds right in order for our bodies to do what we want. To organize our finances accordingly, we need to get our mindsets right first. So ‘The Psychology of Money’ by Morgan Housel is a great book to read,” she said.

In “The Psychology of Money,” Housel shares 19 short stories about the unique way people think about and handle their money.

Books on Benjamin Graham, Warren Buffett and Value Investing

Shark Tank investor and bestselling author Daymond John recommends Benjamin Graham’s “The Intelligent Investor.” Graham, who was a mentor to billionaire Warren Buffett, teaches readers strategies for successfully using value investing in the markets.

Value investing is a strategy for choosing stocks that investors believe are trading below their intrinsic value and are therefore considered cheap. Ultimately, these stocks will appreciate in value and the investor will benefit.

Disciples of Benjamin Graham and two of the most successful investors ever, Charlie Munger and Warren Buffett’s annual letter to Berkshire Hathaway shareholders has become required reading for many investors.

Since 1977, Berkshire has issued a letter to shareholders in which Buffett talks candidly about investments, mistakes he’s made, and broader views of the good and bad about the stock market and Wall Street. These letters can all be read online.

If you want to learn more about value investing, author and investor Phil Town recommends Mohnish Pabrai’s “The Dhandho Investor,” a book that outlines his framework of value investing.

Pabrai’s book tells the story of how the Patel family of India acquired more than 40% of the motels in the US, further expanding the principles of value investing.

In 2007, Pabrai and Guy Spier bid $650,000 for the chance to dine with Buffett. This turned out to be a steal: Last year’s winner paid more than $4 million for the honor of dining with Buffett.

After lunch with Buffett, Spier wrote his own book, “The Education of a Value Investor.” Spier’s memoir is candid, taking readers from the darkest corners of Wall Street to a practical guide to what it takes to become a successful investor.

Both Pabrai and Spier continue to post musings on personal blogs.

Warren Buffett archive of CNBC is another great resource for everything Buffett does. With 130 hours of searchable video and 2,800 pages of transcripts, readers and viewers can receive a full Buffett education.

REGISTER: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox. For the Spanish version Dinero 101, click here.

CHECKING OUT: 78% of workers ignore “the greatest good to make money” before retirement, CPA says. Here’s What It Could Cost Them With Acorns+CNBC

Disclosure: NBCUniversal and Comcast Ventures are investors in acorns

Leave a Comment