11 Best Books on Finance for Beginners

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Everyone has different reasons to start learning about finance, whether because they are having trouble managing their budget, adolescents want to dip their toes for the first time in these waters, or they want to learn the art & science of cryptocurrency. So, this article suggests 11 must-read books on finance for beginners.

Top Books on Finance for Beginners To Read This Year

Reasons could be manifold, but the goal remains the same that is to become literate in finance. We agree with you and thus bring you to suggestions about books on finance for beginners catering to every need:

The Richest Man in Babylon- by George S. Clason

Originally published in 1926, this book will be one of the easiest to read on the list. The book starts with a story of a fictional character named Arkad, 4000 years ago, in the city of Babylon. The story often dwells between prose & verse, with general themes of advice & philosophy of wealth. All of these culminate into the now famous “The Seven Cures” & the “Five Laws of Gold.” 

the richest man in babylon
The Richest Man in Babylon- by George S. Clason

The unusual & exciting style of story-telling and dispensing wisdom stays relevant in the 21st century. 

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The Worldly Philosophers- by Robert L. Heilbroner

To begin reading about finance, you must take an active interest in economics as a subject. It will help you understand the reason behind advice or a theory & expand your worldview to see the possibilities that others can not. The book is an introduction to finance, showing you how the world-famous economists think & reach a conclusion studied in Finance 101.

common sense on mutual funds
The Wordly Philosophers

If you are thinking of taking a plunge into the world of Finance and wondering about the direction in which you should head, then this book can cover your bases through the history of economics & Finance.

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The Intelligent Investor- by Benjamin Graham

Another classic which was first published in 1949, remains relevant in today’s times. The core principles, tenets, & key lessons are pertinent in building an educational foundation for your journey towards financial literacy. The book is formal in its tone & often repetitive to emphasize the importance of key concepts.

The strategy of value investing is an idea developed by Benjamin Graham himself. The theories presented in the book have become so popular & valued over the years that it is present in the school curriculum. The above strategies & theories form the basis of the book. 

the intelligent investor
The Intelligent Investor

The book contains in-depth & practical advice for both active & passive investors. We suggest you pick this book on finance for beginners.

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The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb

To be good at finances, you need to develop a hold on topics & importance of probability & statistics. This book prepares you for the rare & unpredictable events & the risk & vulnerabilities of a market.

Nassim Taleb turns a complex & tedious topic into something witty & fun reading. The book covers various subjects using elements of fiction & unusual stories to elaborate his theories on those subjects.

the black swan
The Black Swan

It is one of those books that can prepare you for uncertain times with its comprehensive outlook on decision theory.

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Investing 101: From Stocks and Bonds to ETFs and IPOs, an Essential Primer on Building a Profitable Portfolio by Michele Cagan

Like its name, this book is more of a comprehensive textbook that can provide you with working knowledge of jargon, theories & concepts of financial investment. The book proclaims to be a crash course in building personal wealth.

Other titles by the same author as Budgeting 101, Stock Market 101, or Financial Words You Should Know, can go with this book.

investing 101
Investing 101

If you want to learn from scratch & prefer textbook formats, this book can benefit you.

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Common Sense on Mutual Funds- by John C. Bogle

The book was written in 1999 when mutual funds were the preferred choice across all age groups. Times have changed & still, investors praise it as one of the best books on finance for beginners.

The book emphasizes the importance of preparing a long-term strategy & index funds over active funds in the first 20-30 years to diversify your portfolio. He also counts several cost-effective & secure ways to invest in stocks & bonds.

common sense on mutual funds
Common sense on mutual funds

The book comes across as written in a straightforward & easily digestible format & can become your guide towards passive investment.

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The One-Page Financial Plan: A Simple Way to Be Smart About Your Money- by Carl Richards

A book about financial planning focuses more on making budgeting a fun activity that helps you save money. Per its name, the book takes you down with little details about flexibly planning your finances.

According to Richard, it is okay to set out financial goal(s) for yourself & then learn the basics of finance. 

the one-page financial plan a simple way to be smart about your money
The One-Page Financial Plan A Simple Way to Be Smart About Your Money- by Carl Richards

Financial planning does not have to be a dreaded task & you do not need to defer eating at a fine-dining restaurant because that will derail you from your goals. You can accommodate them in your plan to maintain a balance. The book emphasizes nuggets like this. 

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Against the Gods: The Remarkable Story of Risk- by Peter L. Bernstein

A classic book, Against the Gods, was A Business Week, New York Times Business, & USA Today bestseller for many weeks. The idea of the book is about risk management and navigating through those risks without getting demotivated.

The book covers vulnerabilities and the role of probability in financial markets in about 400 pages. Anecdotes & fictional stories from old Greece to Renaissance times make it an engaging read. 

against the gods
Against the Gods The Remarkable Story of Risk- by Peter L. Bernstein

From this book, you can learn about the highs & lows of taking risks & how to mitigate the worst-case scenarios in a financial market. 

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The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness- by Morgan Housel

One of those books on finance for beginners that we can find on almost everyone’s recommendation list & bookshelf. Basically, it is one of the most highly-rated books on every platform.

After reading so much of finance101, we need a book that can help us introspect about what we have learned so far. Hence it pushes us to understand where our thinking & reasoning stand when it comes to money.

the psychology of money
The Psychology of Money

If you are someone who likes to know the why behind everything & can not stand the idea of jargon & concepts, then this book will not disappoint you. 

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The (Mis)Behavior of Markets- by Benoît B. Mandelbrot & Richard L. Hudson

The book explains the concepts of a financial market with the physics & math behind them as the author of the book, Mr. Mandelbrot, is a mathematician famous for inventing the field of fractal geometry. In this book, he applies those mathematical concepts of fractals and then applies them to the market.

Financial crises in the market in the recent past have motivated many mathematicians & statisticians to take a deeper look at the uncertainty of this market & prepare models that can dodge the bullet next time. 

the (mis)behavior of markets
The (Mis)Behavior of Markets

This book can be a fun ride for anyone developing an interest in understanding the behavior of the market and, above all, does not mind studying the data that goes behind the 1800s.

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The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order- by Michael J. Casey & Paul Vigna

The list will not be complete without talking about digital currencies. The Age of Cryptocurrency is recent relative to the other books mentioned above. The book tries to explain the basics of digital money first by establishing the history of money.

It presents a non-technical point of view to the jargon like Bitcoin, Blockchain Technology, & so on, found regularly. Book also briefly touches on the history of cryptocurrency & provides a neutral viewpoint towards them.

the age of cryptocurrency
The Age of Cryptocurrency

This book provides a non-technical introduction to the cyber-economy & digital currencies. It can equip you to take further advanced courses as you progress through this book. 

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Frequently Asked Questions (FAQs)

The books mentioned before the closing are assorted & may need some shuffling if you have a specific query. Thus, we are answering some of the most frequently asked questions in the best financial books:

What are the best finance books that I should read?

  • The Richest Man in Babylon- by George S. Clason
  • The Intelligent Investor- by Benjamin Graham
  • The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness- by Morgan Housel
  • Investing 101: From Stocks and Bonds to ETFs and IPOs, an Essential Primer on Building a Profitable Portfolio by Michele Cagan
  • Against the Gods: The Remarkable Story of Risk- by Peter L. Bernstein

See Also: 18 Prominent Places to Get Paid to Read Books

What are some books on money that I should read?

These are some finance books that offer great insight into money & money related issues:

  • The Richest Man in Babylon- by George S. Clason

The book deals with acquiring & keeping wealth. A parable told through the eyes & encounters of a fictional man named Arkad.

  • The Millionaire Next Door: The Surprising Secrets of America’s Wealthy- by J. Stanley

The book stresses the importance of compounding wealth over the years through a strategy called, The Millionaire Next Door Formula.

  • The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness- by Morgan Housel

It is one of the best books on finance for beginners, having 19 short stories. The experiences of other people form the basis of these stories, asking you to introspect on their stories & decisions.

See Also: 8 Best Budget Planner Books For 2022

What are some best personal finance books?

These are some best financial books dealing with personal finance: –

  • The Automatic Millionaire- by David Bach
  • Broke Millennial- by Erin Lowry
  • I Will Teach You To Be Rich- by Ramit Sethi
  • You Are a Badass at Making Money- by Jen Sincero
  • The One-Page Financial Plan: A Simple Way To Be Smart About Your Money- by Carl Richards.

The Takeaways

So, this is our roundup of the best books on finance for beginners. Keep in mind the absolute beginners. Moreover, some books touch on specific topics like mutual funds or risk management & others present a comprehensive view of finance & economy.