7 Personal Finance Books That Can Change Your Life

"Books are the quietest and most constant of friends; they are the most accessible and wisest of counselors, and the most patient of teachers."--Charles W. Eliot. As the holiday buying season gets underway, I thought I'd share those personal finance and investing books that have been my best "friends," "counselors," and "teachers." If followed, these books have the power to change your financial life and the financial life of somebody you know.

	For the young or new investor, I cannot recommend a better book. The Bogleheads' Guide to Investing explains in an easy to understand way investing, mutual funds, bond funds, asset allocation, taxes and more. I bought this book for my sister earlier this year. With no investing experience, she said the book was very easy to read. She's also now regularly investing in her 401(k)!
	If you or somebody you know are raising children, this book is a must. I struggle to find the best approach to teaching my children about money. Do you pay an allowance, or not? Do you tie allowance to chores? How do you teach your children to be responsible with money? Raising Money Smart Kids: What They Need to Know about Money and How to Tell Them (Kiplinger's Personal Finance) answers these and other questions. The book is easy to read and provides a lot of inciteful ideas.
	Whether you're just starting you out or are dissatisfied with your career, What Color Is Your Parachute? 2008: A Practical Manual for Job-hunters and Career-Changers can help you determine what line of work you'd most enjoy. What Color Is Your Parachute Workbook: How to Create a Picture of Your Ideal Job or Next Career is a companion workbook that is worth considering, too.
	For the not so new investor, The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk is a great book to learn some of the more advanced concepts of asset allocation. If you've read this book, two good alternatives are The Four Pillars of Investing: Lessons for Building a Winning Portfolio and All About Asset Allocation.
	Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence does a great job of describing how our lives and money should interact. This book will definitely give you a new perspective on money and work. A note of caution, however. The book includes chapters on inflation and investing that are truly misguided. But the rest of the book is worth reading, particularly if you or somebody you know struggle to control your spending.
	This book can be a real paradigm shift if you envision most millionaires as driving expensive cars and living in mansions. The Millionaire Next Door describes how most self-made millionaires actually live. I'll give you a hint--they live modestly.
	The Richest Man in Babylon teaches a great lesson in the power of slow, steady and small investments. It teaches that you don't have to have a lot of money to be rich. What you have to have is time and discipline.

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