If you want to create wealth or build net worth over time, you need to learn how to invest. One of the best ways to get started is with an investing for dummies book. By learning how to invest, you can build financial independence and make sure your future beyond the workplace is secure beyond.
If you’re just getting started, check out The Intelligent Investor by Benjamin Graham.
When it comes to investing books, there’s more than one type of investing you can learn about. For many people, the first thing they want to learn about is how to invest in the stock market. But that’s not the only option out there. There are also mutual funds, exchange traded funds, retirement, real estate and more.
Even if you’re looking for a book for beginners, the first thing you should do is figure out which type of investing you want to get started with. With this, also consider how much risk you’re willing to take with investing. For instance, small cap index funds are a low-risk type of ETF that is good for new investors. The stock market, meanwhile, is quite volatile and may not be the best option if you’re new to investing.
As with any book, investing for dummies books come in a few main formats. These are ebooks, physical hardback or softcover copies and audiobooks. If you’re more of an audio learner, you may want to go with a format where all you have to do is listen, but if you want to take notes or put that highlighter to use, get a physical copy instead.
Some books on investing use complex terms and can be difficult to understand, much less put the lessons learned into practice. If you’re new to investing, it’s probably a good idea to go with a basic book that still covers the essentials.
Since investing is a complicated topic, many books are hard to get through. Some take a straightforward approach to explaining the topic, while others are more confusing. Even if the book itself uses clear terms and explains everything, it may not help you learn as much as you’d have liked if it’s too dense. In general, the denser the book, the more prior knowledge you should have before trying to take it on.
Investing for dummies books usually use a combination of easy-to-read paragraphs, illustrations, tips and practical examples or case studies so the reader can follow along. Some may also have exercises that let you put what you’ve learned into practice.
The edition of the book matters. Newer editions usually have new, updated content than older ones. The information in a book that’s over a decade old may not be that relevant in the modern world. New editions may also have new features that didn’t exist in the previous versions of the book.
However, the edition of the book doesn’t always make a huge difference. Certain concepts or topics don’t change much from year to year or even from decade to decade. For instance, if all you want is to get an idea of real estate investing and how it’s changed over the years, it may be fine to get a slightly older edition. Plus, older editions are often less expensive than newer ones.
Investing books, even those meant for beginners, can be incredibly dense. Some investing books can exceed 500 pages, while others may be closer to 200 or 300 pages.
Even if the book is long, that doesn’t necessarily mean you have to read the entire thing. As with most educational books, investing books for dummies are often organized into key topics. If you’re looking for information on specific topics, you can always skip ahead to the section or sections you want to read about.
Most investing for dummies books have a glossary at the back where you can find all the terms used within the text. The glossary can help beginners remember new concepts and connect the dots between them.
Everyone processes information differently, but if you’re trying to learn about a new topic, here are a few things you can do to make the information easier to digest.
Used books, e-books and paperbacks usually cost less than others with an average price of around $3-$10. For a new edition, hard copy book, you may be looking at between $25-$50.
A. You may want to supplement your knowledge with other sources, such as podcasts or online classes, but yes, most people can learn at least the basics of investing with a book or two.
A. This depends on what you want to put into it. The first thing to think about is the resources. If you plan on buying multiple books or taking several classes, it can be expensive to get started, but if you want to read one or two e-books and then start investing in small things like small-cap stocks, it doesn’t have to break the bank.
What you need to know: If you’re looking for a book that teaches you about investing in a smart, low-risk way, this is the one for you.
What you’ll love: This comprehensive book on investing provides unique insight and essential information on the vast world of “value” investing. Written by renowned investment advisor Benjamin Graham, this book is essential for any new or intermediate investor.
What you should consider: It offers a lot of value, but it’s a little dense.
Where to buy: Sold by Amazon and Audible
Investing All-in-One For Dummies
What you need to know: With eight books in one, this investing for dummies book is a steal.
What you’ll love: Available on Kindle and in paperback, this investing book covers everything from stocks and bonds to real estate and digital investing. It walks you through the essentials and gives you the tools you need to start building a diversified investment portfolio for your future.
What you should consider: It’s fairly easy to read and is great for beginners, but with the amount of information it provides, it can be a little bit much for new investors.
Where to buy: Sold by Amazon
You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of the Stock Market
What you need to know: For those who want to learn about how the stock market works and how to invest in it for the greatest returns, this book is a great starter’s guide.
What you’ll love: This book offers a lot of practical information and advice on the stock market. In it, you’ll find information about stock market investing that even the pros sometimes miss.
What you should consider: It’s mainly geared towards the stock market and security analysis, so if you’re not interested in those, it may not be the right pick for you.
Where to buy: Sold by Amazon and Audible
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Angela Watson writes for BestReviews. BestReviews has helped millions of consumers simplify their purchasing decisions, saving them time and money.