Investing for Beginners Books

It can be overwhelming to start investing especially with all the information online. Before you get frustrated and leave, take a deep breathe – In and out. You have the capacity to learn how to invest. Don’t defeat yourself with “I’m not good with numbers”. That’s like defeating yourself before you even open up an investing book. You are capable of learning this. If you’re looking for some resources to get started, I’ve got some good books to recommend. I put them in order from easiest to read to a little more technical. It’s important to build up the confidence on investing. Here are my favorite investing for beginners books.

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My favorite Investing for Beginners Books:

Broke millennial takes on investing By Erin Lowry

I highly recommend this book for those who needs a place to start when it comes to investing and personal finances. It was easy to read and the author, Erin Lowry, dedicated a lot of time to make such a painful endeavor enjoyable. Lowry does an incredible job at including a wide range of people with different financial backgrounds and goals. I have recommended this book to literally each of my closest friends and gifted the book to my siblings. It’s a great introduction to investing and she breaks down all the complicated terminology into digestible terms. This is a great investing for beginners books resource.

I Will Teach You to Be Rich by Ramit Sethi

This is probably one of my favorite investing for beginners books. Hilariously written, Ramit Sethi really caters the money talk to millennials. His first-generation American experience really resonated with me as a first-generation woman whose mother immigrated from Mexico. I really like this book because he begins with budgeting and debt reduction basics. Then as you continue throughout the book, he builds up the readers financial education to a great point and begins to tackle on the investing part. His book is a GREAT book for anyone who is just starting out on their financial literacy journey. This book was very easy to read and his advice helped me negotiate 3 of my credit cards down to a 0% APR (Annual Percentage Rate). Worth the read even as someone who has the budgeting basics down!

The Simple Path To Wealth By JL Collins

This book was based off a blog where a father wrote letters to his daughter to help her prepare for a life of financial independence. When I started following his rules, within two months, my credit score skyrocketed! I know his rule of living off of 50% of your income sounds crazy, but this mindset has really changed the way I see my money. Instead of just seeing my cash flow as a source of buying power, I think of all the missed opportunities or investments, that are associated with material purchases which quickly lose value and tie up my assets. I’m definitely in this game for the “F you” money he talks about. This is a great book for information on an investing mindset as well as the technical information on stocks, bonds and index funds. It starts off easy and then slowly begin to introduce investing terminology. He does a great job and breaking up the chapters into digestible sections.

The Millionaire Next Door By Thomas Stanley

The Millionaire Next Door does a great job at comparing and contrasting the habits of millionaires and high consumers. It also does a great job at explaining the differences between assets and liabilities. Broke is flashy, wealth is quiet. Growing wealth isn’t an attractive lifestyle when you’re starting out. It requires staying away from debt and living a “cash is king” life. This book has more data and charts to compare investing choices and income.

The Little Book of Common Sense Investing by John Bogle

This book does a great job at explaining why managing your own investments is so valuable. John Bogle does a great job at driving the point home that mutual funds managed by a company will be costly due to the high fees and eats away at your profits, where as learning to manage your own investments is much more cost efficient and not as difficult as you would think. He explains fees on accounts, asset allocation, ETF’s, index funds and all the basics that are necessary to understand investing. It is a little more of a dry read, BUT still valuable.

Invested By Danielle Town

I really enjoyed this book. Danielle broke down investing starting from our fears and anxieties. The fact is, there is risk with every investment, but choosing not to invest may be costly. She does a great job at breaking down the pros and cons of managing investments yourself. She also does a great job at guiding and helping the reader prepare to invest. This is a book I’d recommend after the other entry level investment books. This book focuses on investing in individual companies vs index funds. Still a great recommendation on my investing for beginners books.