Here Are the Tools to Build Your Financial Literacy

Doc’s note: Today, I’m rounding out of week of classic advice for growing your wealth by covering how to educate yourself on essential aspects of financial literacy… from how to start investing to understanding economics. Whether you’re brand new to the world of investing or a lifelong learner, this issue is for you…

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Today’s graduates have no idea what they’re getting into.

We’re in the middle of graduation season – many colleges already held virtual ceremonies and now high schools are celebrating the next crop of grads. Some are hopeful about the future, some are pessimistic… but they’re all clueless when it comes to finances.

The most recent survey we found from the National Association of College Stores found that 72% of new college graduates don’t feel even somewhat competent about investing.

Many also said they didn’t feel prepared for topics like preparing taxes, paying down debt, or saving for retirement.

I’ve said it many times: The best way to empower yourself to take control of your own life is to educate yourself. If high school or college won’t prepare you for the real world, you need to find something that will.

And learning doesn’t stop when you’re a kid or a recent grad. Lifelong learning is crucial for mental acuity. If you want to keep your brain sharp, ward off dementia, and live a long and successful life, never stop learning.

So whether you’re a recent grad, the parent or grandparent of a grad, or a lifelong student, today’s issue is one you can’t miss.

Over the years, I’ve compiled my ultimate reading list. It covers the best books in a range of financial topics. Today, I want to share the top three books from each category. I’ve also asked my team to each recommend a book as well.

Start building – or refreshing – your financial literacy today.

Beginning Books for Investors and Moneymakers

  1. Liar’s Poker, Michael Lewis
  2. Think and Grow Rich, Napoleon Hill
  3. Little Book of Common Sense Investing, John C. Bogle

Philosophy of Life, Money, and Investing

  1. Atlas Shrugged, Ayn Rand
  2. The Drunkard’s Walk: How Randomness Rules Our Lives, Leonard Mlodinow
  3. Against The Gods: The Remarkable Story of Risk, Peter L. Bernstein

Big Swingers of Wall Street

  1. Beating the Street, Peter Lynch
  2. The New Market Wizards: Conversations With America’s Top Traders, Jack D. Schwager
  3. Adventure Capitalist: The Ultimate Road Trip, Jim Rogers

Value Investing Books

  1. The Little Book of Value Investing, Christopher H. Browne
  2. The Dhando Investor, Mohnish Pabrai
  3. Value Investing Made Easy, Janet Lowe

Trading Books

  1. Trader Vic: Methods of a Wall Street Master, Victor Sperandeo
  2. How to Trade in Stocks, Jesse Livermore
  3. The New Money Masters, John Train

Economics

  1. Economics in One Lesson, Henry Hazlitt
  2. Naked Economics: Undressing the Dismal Science, Charles Wheelan
  3. Warren Buffett’s Annual Letters (www.berkshirehathaway.com)

History of ‘The Street’ Books

  1. F Wall Street, Joe Ponzio
  2. Wall Street Meat, Andy Kessler
  3. Hedgehogging, Barton Biggs

My Team’s Picks

One Up on Wall Street – Peter Lynch explains how to use everyday experiences to beat Wall Street. He tells you how to find a product or service, how to research if it’s a good investment, and what to do when you’ve decided to invest. Lynch uses his own real-life examples of winners and losers to help you make better gains than traders. This is a good aid for investors who want to break away from a financial adviser or broker and find their own investments.

The New Coffeehouse Investor – If you don’t feel like spending your time watching the market, this is the book for you. Bill Schultheis explains how to get market earnings without trying to beat the market and set up your portfolio for long-term growth. This is a book any average investor can use.

Your Money & Your Brain – Jason Zweig dives into “neuroeconomics” in this easy and enjoyable read. He covers behavioral finance, biases, and the “why” behind common investing misconceptions. This is a great book if you have an interest in psychology and behavior.

Another great resource: Our own Health & Wealth Bulletin. Feel free to share this with your friends and family. Signing up is easy – you can click here to sign up on our webpage.

If you’re looking for more, my team put together a generational investing report. We cover the financial moves folks should make in each decade of life, starting in their 20s. It’s great reading for anyone. You can access it right here.

Here’s to our health, wealth, and a great retirement,

Dr. David Eifrig and the Health & Wealth Bulletin Research Team
December 23, 2021

Editor’s note: Our offices are closed this coming Friday and Monday for the Christmas holiday. Your next issue of the Health & Wealth Bulletin will be in your e-mail inbox on Tuesday, December 28. From all of us here at Health & Wealth Bulletin team, we wish you and your loved ones a safe and happy holiday.