Book Summaries: Personal Finance & Economics
Personal finance and economics books, summarised in one paragraph. Follow the links to see more detailed book notes and related articles from the blog.
The Deficit Myth - By Stephanie Kelton
The Deficit Myth is an introduction to Modern Monetary Theory (MMT), a controversial economic school of thought that is growing in popularity. It seeks to explain why for countries with monetary sovereignty the federal budget is fundamentally different to the household budget, and why deficits are generally good for the economy. Instead of focusing on self-imposed budget constraints, Kelton suggests we should instead use inflation and real resource limits as the measuring stick for public spending.
How to Own the World - By Andrew Craig
Since 2008, we have faced a paradigm shift in finance and economics. The rate of change is only likely to accelerate over the coming years. This book outlines Craig’s perspective on the optimal investment strategy to capitalise on these changes. Looking at some of the recent trends, Craig explains how any everyday investor can – and should – develop a portfolio of investments that seeks to “own the world” and “own inflation”.
Related Article: Why Financial Independence Is More Important Than Ever
Rich Dad Poor Dad - By Robert Kiyosaki
Growing up, Robert Kiyosaki had a rich dad (his best friend’s dad) and a poor dad (his real dad). His poor dad did everything the way most of us are taught to do it. He got an education at university, he secured a stable, well-paid job, worked hard, got a mortgage, and so on. His rich dad, on the other hand, didn’t follow the usual path. He started small and focused on building income-generating assets, he used legal corporations to reduce his tax liability, he paid himself first. In Rich Dad Poor Dad, Kiyosaki outlines the key lessons he learnt from his rich dad so he could avoid his poor dad’s financial fate. The book has become one of the best-selling personal finance books in history.
The Richest Man in Babylon - By George S. Clason
Written in 1926, The Richest Man in Babylon is a book of timeless personal finance principles, told in the form of short stories based on the “Babylonian parables”. At its height, Babylon was the wealthiest city in the world, which Clason attributes to the relationship its people had with money. The book uses stories of characters from Babylon to illustrate the importance of our relationship with money and the basic principles for acquiring, keeping and earning money.
Related Article: Compound Interest: When Your Gains Feed Your Gains
The Rise of the Robots - By Martin Ford
Martin Ford sets out why he believes new technologies will ultimately push us towards a world economy that is less labour-intensive. Without the right policy response, Ford suggests we will confront a grave economic and human cost.
Related Article: Finally, the Open-Plan Office Is Dead (Almost)
Think and Grow Rich - By Napoleon Hill
First published during the Great Depression in 1937, Think and Grow Rich is considered a classic in the field of personal development and self-improvement. The book is not exclusively about personal finance. Instead, its central focus is 13 principles which Hill believed were the key to the accumulation of riches and success in any field.
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