FINANCIAL FRESHMAN #011
TL;DR → If you’re still in college and interested in becoming more financially literate, consider picking up The Simple Path to Wealth and Set for Life. These two books provide meaningful perspectives on investing, debt, becoming financially independent, and developing good financial habits.
Best Finance Books for College Students
Your time as a college student is likely packed with assigned reading, some of which you might not find all that exciting. But what if you could add a few books to your reading list that set you up for long-term financial success? When you can carve out time, why not dive into books that will boost your financial literacy and equip you with the tools to navigate life after graduation?
The books recommended here are not only easily accessible but also packed with practical financial advice that is especially valuable to young adults. This Sunday, we’ll explore two must-reads that every college student should consider picking up.
Best Finance Books for College Students #1
The Simple Path to Wealth, by JL Collins
JL Collins had written a series of letters to his young daughter – mostly regarding money and investing – that she was too young to hear at the time. Those letters inspired his blog, which went on to inspire this bestselling personal finance book.
What is the simple path to wealth, you may be wondering? Spend less than you earn, invest the surplus, and avoid debt. The subtitle is appropriate, as this book provides an actionable roadmap to true financial independence—reached when you can live on 4% of your investments per year, according to Collins.
This book covers how to best think about money, how to stay calm and collected during (inevitable) market downturns, and how to get started with simple index fund investing. It also provides a blueprint to follow later in your career, when much of your financial efforts will pivot from wealth accumulation to wealth preservation. Along the way, Collins provides meaningful storytelling and defensible background information, making it an essential personal finance read for your early career.
“If you choose to master it, money becomes a wonderful servant. If you don’t, it will surely master you.” (p. 1)
“Everybody makes money when the market is rising. But what determines whether it will make you wealthy or leave you bleeding on the side of the road is what you do during the times it is collapsing.” (p. 61)
“Personally, there is nothing I’d rather buy or own than F-You Money.” (p. 255)
Best Finance Books for College Students #2
Set For Life, by Scott Trench
Scott Trench is the CEO of BiggerPockets, a company that provides education and tools to aspiring real estate investors. While this book does dedicate one chapter to real estate investing, it also covers smart financial approaches to housing, investing in the stock market, how to effectively track your money, and positive financial habits.
Each of these financial deliverables are discussed in the context of what Trench calls your financial runway, or the number of years that you could maintain your current lifestyle without the need for wage-paying work. Because of this framework, Set For Life effectively covers approaches to grow your wealth and reduce the amount of money it takes you to survive in the first place.
The explicit mentions of frugality and positive financial habits make this a must-read for someone that has yet to enter the full-time workforce. If followed early in your adulthood, the teachings of this book could form an impressive financial foundation.
“If you can easily get by on significantly less income than you currently earn, you open yourself up to an entire world of possibilities.” (p. 8)
“Income can be taken away and can come and go. Wealth, on the other hand, is a function of knowledge and time.” (p. 125)
“Build your own wealth, buy back your time, and spend both wisely.” (p. 221)
Final Thoughts
If you’re currently a college student, consider picking up these two books to start building a foundation of good financial habits. Rest assured that the library of beneficial personal finance books is vast; Come back in a few weeks for two more book recommendations!
