The Psychology of Money by Morgan Housel
My rating: 5 of 5 stars
This is very good mostly because it's very simple. Twenty common-sense ideas that are so absurdly obvious if you think about but are hardly ever engaged with, seriously, basically account for all successes and failures when it comes to money.
The more obvious points:
Professional traders are about as good at it as random non-professional investors.
Compound interest is an ungodly cheat mode.
Getting your head on right is much more important than anything else you could do.
Prepare for the idea that shit might get real, good or bad, and figure it into everything you do.
Honestly, it's a great book. You don't have to be super financially literate in order to BECOME financially literate.
And it shouldn't surprise anyone that the current system is designed to appear horribly complicated and chaotic in order to discourage all but the top tier, but it IS possible to simplify just about anything if you have the will.
Books like this are very valuable for that very reason.
View all my reviews