When it comes to understanding how to handle money, figuring out where to start can be fairly overwhelming. Walk into any Barnes and Noble store and you'll find hundreds of titles offering advice on how to spend it, save it, make more of it, and keep what you have from disappearing.
But not all advice is created equal. When you're in your 20s, you want easy-to-read books that will teach you the foundations of investing, the best way to budget for major purchases down the road, and how to finally pay off those student loans.
To help narrow down the choices and find the best advice, we reached out to personal finance experts and authors to find out which foundational books everyone should read before turning 30.
"The Millionaire Next Door" by Thomas J. Stanley and William D. Danko
First published in 1996, "The Millionaire Next Door" distills Stanley and Danko's findings from more than 20 years of research into seven key characteristics that explain how the elite club of America's millionaires became rich.
Why it's great for young people:
"'The Millionaire Next Door' is great for people in their 20s because it talks about the basics of personal finance," says Rob Gough, co-founder and president of Eckim (DefinitiveDeals.com, CouponChad.com). With simple, commonsense lessons like "spend less than you earn,""avoid buying status objects," and "diversify your investments," the book helps readers develop good habits from the very beginning.
"The Investment Answer" by Daniel Goldie and Gordon Murray
In "The Investment Answer," Goldie and Murray provide a general guide to investing by focusing on five decisions every investor has to make. These include whether to invest alone or with a professional; how to allocate among stocks, bonds, and cash; and when to sell or buy assets.
Why it's great for young people:
"Investing is an important part of personal finance for everybody, but most people hate reading about investing," says David Welliver, editor of MoneyUnder30.com. "This brief, easy-to-read book is the most approachable investing book I've come across. There are plenty of other good investing books for those that want to get their hands dirty, but for anybody who doesn't, this is the book to read."
"I Will Teach You To Be Rich" by Ramit Sethi
In a breezy, irreverent style, Sethi lays out a serious six-week personal finance program for 20- to 35-year-olds who want to master their money with the least amount of effort and then get on with their lives.
Why it's great for young people:
"'I Will Teach You To Be Rich' is hands down the BEST book out there for the younger generation," says "J. Money" from RockstarFinance.com. "It’s funny, educational, and full of exact 'how tos.' And a super easy one at that — which anyone with A.D.D. can appreciate (like me!)."
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