The Supply Crisis of 2021 has played out as expected. Demand to buy stuff is high but availability of stuff is low. It's a nightmare for pocketbooks of shopping early birds and playing to the worst fears of people who leave the holidays to the last minute.
There is one area of the market, though, that seems to be in perfect equilibrium. The market of personal finance ideas is matched perfectly by demand for them. In 2021 people are saving more than ever, a good sign that there is a pretty good appetite for learning more. In that spirit, please find my best recommendations for personal finance books that you still have time to procure, wrap and sneak under the tree.
Let's start with children ages 5-10. I love the lessons and wisdom of "Sammy's Big Dream" by Sam Renick. Sammy learns of his opportunity to go on a field trip into space to ride the space roller coaster but has to earn and save his own money. My kids also love a series of books that would make visually beautiful gifts under the tree. Written by Cinders McLeod, "Earn It, Give It, Save It and Spend it", are entertaining stories in their own right, slipping in wisdom of youthful bunnies understanding that carrots are finite and must be earned, saved, given and budgeted.
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For kids who are ages 8 through high school, I am loving a book called "Investing for Kids: How to Save, Invest and Grow Money" by Dylan Redling and Allison Tom. I have been reading it a little at a time and discussing it with my two oldest who now seem genuinely excited to invest their savings. Reading this book, I realize that most adults don't have the level of understanding of the concepts laid out in a way that is easy for most people to understand, so reading it out loud at bedtime has a triple advantage: educating kids, educating parents, and maybe even a nice night-time melatonin supplement along the way.
For college grads, allow me to plug my own book,"But First, Save 10: The One Simple Money Move That Will Change Your Life" published by Et Alia Press. The book is tailored to young women starting their careers with very clear direction on how to sign up for their company retirement plan, why to choose a 10% savings' rate and how to choose from an investment menu. Most importantly, the language of the book contains little jargon, incorporates lots of humor and real-life stories from women their age, and reflects the language I have experimented with dozens of time convincing young women out of college to join retirement plans and save 10%. While the audience is young women, we have gotten great feedback from men who have read the book and appreciate the disarming nature of the messages.
For young adults graduating from medical school, law school, business school or anyone beginning a career in a high paid position, consider "The White Coat Investor: A Doctor's Guide to Personal Finance and Investing" by Dr. James Dahle. The book and blog by the same name have grown into an empire of financial education for high income professionals who care about being able to retire one day, maybe with the option to retire a little early, and avoiding the financial traps of high incomes and low savings. Dr. Dahle is an emergency physician living a quiet life in Utah who began self-educating about personal finance over a decade ago and realized what a disadvantage physicians have when bad advice and products are being pushed by the financial industry. His modest goal was to offer physicians a "fair shake" on Wall Street, but now physicians all over the country are following his simple but powerful advice: pay down student loans quickly, save enough, and invest money in their work retirement accounts and in self-managed brokerage accounts with low fee, passive investments.
For a book close to home for young professionals consider "The Baker's Dirty Dozen: Principles for Financial Independence" by local author Joe Baker, who does financial education for College of Pharmacy students. I have read this book and find it is packed with wisdom and inspiration to take action.
For folks in their 30s, the wedding mania has slowed down, first houses have been bought, student loans are going away, and minds are free to hear the simple but powerful wisdom offered by JL Collins, author of "The Simple Path to Wealth: Your Roadmap to Financial Independence and a Rich, Free Life". This was originally a book written from a dad to his daughter but has become a global sensation translated in 14 different languages, as readers continue to be drawn in by the kind and loving way that he writes his stories and the humor in his own mistakes and successes. He beckons readers to buy into a simpler way to save and invest and avoid the traps of consumerism and the hype of investment fads.
Now let's move up in age and Maslow's hierarchy of needs. Many people before the age of 40 are operating in the bottom stages and, when it comes to money, just need to find jobs they love and live on less than they make. But at 40, speaking from experience-ahem, we want to start moving up the pyramid, with money less of a focus. That's because by 40, our financial plan and processes are typically established, freeing us to pursue connection and relationships, giving, and our own personal development, or self- actualization.
While money should start playing less of a starring role at this point, the accumulation of money can lead to obsession and even worry. But what if we redirect that energy to thinking about the tradeoffs of money and time at a point when we might be able to afford to buy back our time?
There is no greater book to challenge the money/time tradeoff than "Your Money or Your Life: 9 Steps to Transforming Your Relationship With Money and Achieving Financial Independence" by Joe Dominguez and Vicki Robin. The book was inspiration to launch the FIRE movement (Financial Independence Retire Early) and continues to inspire people eager to avoid the traps of consumerism and to become financially independent, whether it's at normal retirement age of 65 or earlier.
And for the people in your life who are in this age range but still chasing the empty promises of consumerism, living paycheck-to-paycheck and not getting ahead, there was never a better understanding of what it takes to build wealth offered by "The Millionaire Next Door: The Surprising Secrets of America's Wealthy" by Thomas Stanley and William Danko, or my surprising love of the sequel "The Next Millionaire Next Door: Enduring Strategies for Building Wealth" by Thomas Stanley and his daughter, Sarah Stanley Fallaw, with updated research.
While this is by no means a comprehensive list -- hey, "The Richest Man in Babylon," I see you -- this is a sampling of books that have enriched my life and investment accounts and those of clients, retirement plan participants and peers. Now to you, what's the one book about money that you would give to a loved one? Why?
Sarah Catherine Gutierrez is founder, partner and CEO of Aptus Financial in Little Rock. She is also author of the book "But First, Save 10: The One Simple Money Move That Will Change Your Life," published by Et Alia Press. Contact her at sc@aptusfinancial.com.