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Wealth Management books:
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The best of Wealth Management books by number of unique Reddit comments:
![Blockchain Revolution: How the Technology Behind Bitcoin and Other Cryptocurrencies is Changing the World [Paperback] [Jun 14, 2018] Tapscott, Don,Tapscott, Alex](https://m.media-amazon.com/images/I/51HKM+CvPnL._SL500_.jpg)
Top Reddit reviews mentioning Wealth Management books:
I recommend reading "The Millionaire Next Door", it goes it to more detail about the spending/saving/investing habits of the ~~average~~ most millionaires in America. Living in a culture that prioritizes spending it's not surprising those who do the best financially go against the grain, and are also frowned upon.
>>The jets and all that other crap seem like a better value renting. > >Huh? $3 million in total wealth isn't much, especially for that. Please, don't do that. I strongly recommend that you read The Millionaire Next Door: The Surprising Secrets of America's Wealthy.
Yeah, that bit made me laugh. $3m isn't even remotely close to private jet territory. Try $300m. Lol
Most people that receive a large windfall like this do not fare well OP. At all. Be extremely careful with this money and do not tell anybody. Check out the "Windfall" section in the /r/personalfinance wiki. Also check out /r/fire and /r/fatFIRE.
Couple quotes from The Psychology of Money:
"Like everything else worthwhile, successful investing demands a price. But its currency is not dollars and cents. It’s volatility, fear, doubt, uncertainty, and regret—all of which are easy to overlook until you’re dealing with them in real time."
"It sounds trivial, but thinking of market volatility as a fee rather than a fine is an important part of developing the kind of mindset that lets you stick around long enough for investing gains to work in your favor."
Highly recommend this book. Managing your own psychology is critical to successful investing.
Provided you've got an emergency fund / buffer, holding (or buying if you can) is the right thing.
Your personal finances are a marathon, not a race. But, a strong start sure does help.
Here are some all-around, rock-solid resources:
/r/financialindependence
Do not day trade. Never buy equities on margin. Yes, boring Vanguard funds really are what you should be using.
When people say "avoid debt" they mean "bad debt is a loaded gun pointed at your head". I'd like to amend that with "but good debt is just a loaded gun". Used carefully good debt is a powerful tool, and no less dangerous than bad debt when used without great care.
Buying a car is bad debt. Carrying a balance on your credit cards is bad debt.
Taking on some student debt to break into a high paying career is good debt. (Make sure you take a sober, realistic look at what you can really expect from your career and what it takes to get that out of it.) Hell, it might actually have the single highest return of any investment you ever make.
Getting a mortgage on a cash-flowing rental property in a decent neighborhood is good debt.
Athletes constitute a extreme minority, especially superstars like LeBron. While his example was a little extreme in how lucky the beginnings was, the story is by no means rare. The is a popular book called The Millionaire Next Door which goes to explain how most millionaires in the US got their wealth.
In the vast majority of cases, it's quite straightforward: spend less than you earn, and maximize tax-advantaged investing. Don't waste money on expensive cars or other forms of wasteful spending. Keep doing that for a couple of decades, and you'll be a millionaire.
Of course, the above path does come with assumptions. First is that you need to have an employable degree, and not be crippled by student debt in a way that makes you lose a big chunk of your early earnings. Second is that you need to be not unlucky and e.g. not have an expensive medical emergency. Having a spouse definitely helps (but is not required), and not having kids also helps (but they won't make anything impossible).
Bottom line is that the most millionaires in the US are not sportsmen, nor are they born to immense privilege.
Reset by David Sawyer is a brilliant, UK centric book on FIRE. He also has fantastic advice on leading a fulfilled life on the way to your goals:
RESET: How to Restart Your Life and Get F.U. Money: The Unconventional Early Retirement Plan for Midlife Careerists Who Want to Be Happy https://www.amazon.co.uk/dp/1916412416/ref=cm_sw_r_cp_api_i_jkChFbRZKZDGX
You are probably old enough to read this book
The Psychology of Money: Timeless lessons on wealth, greed, and happiness https://www.amazon.com/dp/0857197681/ref=cm_sw_r_cp_api_glt_fabc_GEGATR7JAMGR84MYBJNW
I found it very informative when I started learning about all this stuff
I've been learning the indicators one at a time. The thesis is, traders watch these levels to time trades. 🤷♂️
This book is the 'bible' but I haven't bothered to read it.
https://www.amazon.com/Technical-Analysis-Financial-Markets-Comprehensive/dp/0735200661
I'm sure a youtube search will find any number of results.
For learning, honestly, I just look at charts that people make who have been doing this for awhile and learn from them. I like Patrick Ceresna a lot.
My approach is - look at a chart and draw some straight lines. This is a bit of an artform but starts to become easier once you look at charts a lot. Trend lines should touch the bottom of at least three candles (the fat part). Also, horizontal lines for historical support/resistances.
EMA - I'm looking at 20D, 50D, 100D, 200D and seeing which one is most significant. Basically - which EMA do the candles touch most often? Is it support (they bounce off and go up) or resistance (they touch it then go down)?
The "Pivots Traditional" can be useful but eh. VWAP and bollinger bands seem useful but I don't totally get how to set them up. Fib retracements I get but seems pretty "hocus pocus". MACD seems kinda useless to me for what I do. I don't understand why anyone cares about Elliot waves.
Most of the more 'advanced TA' is pretty hocus-pocus to me.
The DCA or lump sum argument, IMO, is a pointless argument. You're trading one risk for another. DCA invites the risk of missing out on a rising bull market, lump sum invites the risk of investing everything right before a downturn. Since we cannot time the market, and any successful timing is just luck, I always opt for lump sum. Markets are constantly at an all-time high, that's what happens when markets are historically on the rise more than they're on the downturn. DCA won't really hurt you though. It's more important that you focus on saving as much as you can.
IMO the debate between VT and WTI/VXUS is also pretty negligible. At your age, it's far more important to focus on investing in the first place, meaning staying frugal and saving money to invest. Either the VT or VTI/VXUS combo will outperform the vast majority of people in the long run, as long as you can save money and invest in the first place.
The average 25 year-old isn't concerned whatsoever with investing or retirement. As long as you make a concentrated effort to invest 20-30% of every paycheck, you'll be very wealthy in the future, regardless of what strategy you take in regards to choosing between lump sum/DCA or between VT and VTI/VXUS.
At your age, I'd highly recommend this book. Saving 20-30% of any money that comes your way may seem daunting, but it's actually not all that challenging.
I would consider picking up a copy of Warren Buffett and the Interpretation of Financial Statements to get a hang of financial statement terminology in general (even outside of just DCF.)
Another good resource I used were courses from Pareto Labs.
Here is the bible for technical analysis! Only book you will ever need!
I would recommend The Psychology of Money. It is an excellent book on how different people have different goals. Something that makes perfect sense to you makes no sense to somebody else. It is good to be smart with money but getting the highest possible pay or returns is not everybody's goals.
I recommend the book Cryptoassets. It’s a bit dated since it came out in 2017. But it covers all the fundamentals about cryptocurrency and blockchain technology. Dives in specifics such as the differences between utility tokens, smart contracts, ledger blocks. Also talks about centralized and secret slide networks / private and public block chains. I’ve had a chance to meet the authors in person and pick their brains, very knowledgeable guys. My recommendation.
https://www.amazon.com/Cryptoassets-Innovative-Investors-Bitcoin-Beyond/dp/1260026671
If you’re interested in learning more about technical analysis, the best book by far is <em>Technical Analysis of the Financial Markets</em> by John Murphy. It is considered the bible of technical analysis.
I would read The Psychology of Money. It's a quick read. The parts I found particularly interesting are those about the difference between getting wealthy (which you seem to be good at) and staying wealthy (which you hope to do). If you are asking for a sanity check, you probably already suspect that your current investment pattern is not for you. But I don't know you, so I can't say that for sure. It's not for me.
The Millionaire Next Door. I read it on a lark and didn’t expect to love it but I did, a lot. If you love minimalism and are a super practical person, you’ll love this book. One of my favorite books of all time and I don’t usually like non-fiction or “self-help” genres. This didn’t feel like either, surprisingly.
https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474/ref=nodl_
Same here. I would recommend reading some books before jumping right into it. I’m reading this book at the moment, which basically goes into great detail what I just described. Good luck on your money making journey!
I'd say this is a good read after it:
The Millionaire Next Door: The Surprising Secrets of America's Wealthy
and or
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Never to yearly to set yourself up for success going forward. Lots of good books which can help. I just finished this one and it really made an impression on me:
The Millionaire Next Door: The Surprising Secrets of America's Wealthy
This is another book that has been suggested for me to read and I've purchased and will start soon. But here is a paper on it that is very interesting and if your asking about setting yourself up for success going forward it's a good read:
Hope this helps.
I just started reading this one. Looks promising. I’ll leave full Amazon link without shortening.
The 80 hour weeks are really only the Cinderella years (1-3). Once a business stabilizes, many owners work less than 40 hours while continuing to receive passive full-time income.
This book, "The Millionaire Next Door", provides great insights.
Nick Maggiuli's Just Keep Buying has lot of interesting analysis on this. I don't like articles that people are linking here because it is really hard to project savings rates and income into the future (you have kids etc.). Moreover, Nick's book shows a lot of data that says we typically overestimate how much we will spend in retirement and as people get older they tend to spend even less.
TLDR - His analysis concludes is a portfolio of 25 x annual expenses should be adequate.
Buy yourself 2 books: https://www.penguin.co.nz/books/your-money-your-future-9780143775089 To understand the what and how of investing and developing a plan that works for you. https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681 To stop yourself doing something daft in the future.
if you have some time, I recommend reviewing this over the holidays - it's good to have this side-by-side with the Intelligent Investor --- https://www.amazon.com/Technical-Analysis-Financial-Markets-Comprehensive/dp/0735200661/ref=sr\_1\_1?keywords=murphy+technical+analysis&qid=1669050829&s=books&sr=1-1
Millionaire next door is a book that just shows that often people with lots of money are low key.
I know of Dave Ramsey, but haven't followed him, but didn't realize he was evangelical Christian. Learn something new everyday.
My whole point is when you are 19 without potentially a lot of life experiences an "exclusive" bar may be filled with flashy people who are up to their eyeballs in debt. Especially some young women are lured into bad situations, thinking someone is wealthy, when all they are is up to their eyeballs in debt. Which is why these older men pull one on these younger women. They can't fool women their own age, who see right through them.
try buying a copy of a book called:
It is scientific study of the financial habits of millionaires.
old, and still relevant :)
best of luck!!
I'd also recommend patience, you don't need to rush to do anything with this money. In the meantime read The Psychology of Money and/or The Simple Path to Wealth. Probably both.
If you still want to spend $100k on a car after reading those two books, you do you man.