Back in 2004, when I took up reading about ‘Personal Finance’ to save myself from the clutches of an LIC agent :-), I had to scourge the internet (rediff money and later economic times) to understand even the basics like PF vs PPF, why Term Insurance is the way to go or how evil ULIPs were . Thankfully, things have improved and there are some very good books that people can instead turn their attention to.
Let’s Talk Money & Let’s Talk Mutual Funds – Monika Halan
A book like this would save so much trouble for people looking for important finance stuff in Indian context. All fresh-salaried employees should be given this book as it will help them immensely in their planning. Even experienced folks will find something new and useful. It contains all necessary information and practical suggestions with a fluid writing style and a “next door neighbour explaining stuff” vibe. It is a challenging task to write finance for general populace, because an interest in maths or numbers cannot be assumed but Monika has handled in beautifully and whenever she senses that the reader’s brain might be heating up – she adds some encouraging words to keep him/her engaged and travel just a bit more. Frankly, when I started writing articles on Personal Finance back in 2004, my idea was to do something useful like this. This is a much more complete, polished, not to mention, updated version. [Updated Dec 2023]: Halan followed it up with a book specific to mutual funds and what a brilliant work that was – to take up all categories and flavors of mutualf funds and to find a way to make it sensible to a regular investor is no easy job. It was commendable especially in its approach to teaching the person to fish rather than providing them with the fish. If there are just 2 books that you would read about personal finance then these are the two that I would highly recommend.
Your Money or Your Life – Joe & Vicki
Caution upfront – this book is not for the fast paced, quick-fix, the ‘I have no time – give me everything already’ type of readers. It is a beautifully written book on life and desires with money being the highlight of the discussion. If you want a wholesome book and are prepared to spend some time pondering over it for say a month at least, then you will end up much wiser, much more thoughtful on the entire process of accumulation and spending of money. The discussion surrounds around ‘life energy’ and where you would want to spend it and how to go about achieving that freedom. There is a brilliant discussion on work and paid employment which is worth an entire article by itself. There is a also foreword by mrmoneymustache, who is considered a hero among the FIRE cirle (Financial Independence Retire Early) and who has shaped a lot of my financial thinking as well.
Rich Dad Poor Dad – Robert Kiyosaki
This is probably a crowd favorite even if many would not have gone on to complete it. Robert is an amazing writer and more than that he is a brilliant salesman. So the writing style and content is very captivating. For me, It was the very first time that someone had managed to explain ‘assets’ and ‘liabilities’ with such clarity. It was also where I leared how our house, which we think is our biggest asset, could actualy be a liability. The explanation of “Cash Flow” using the 4 quadrants for every type of earner is something so simple – yet so effective, that it traces how money comes in and how it goes out of your pocket. I was a huge fan of both the book and author that I ended up owning a copy personally signed by Robert (thanks to my close friends). However, over time I do see some drawbacks of his rigid approaches as applied to the general public. Still, this book is about the right size and has a great pace (with a great story too) with good info that it is an easy recommendation.
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