Andrew Hallam became a millionaire at 36 years old. By 40, his savings had grown even more and granted him financial independence.
A middle and high school teacher, Hallam didn't inherit wealth or win the lottery. Rather, he started investing at 19, after the head mechanic at the bus depot where he worked took an interest in him and taught him the basics of finance.
As he got older, Hallam invested every spare penny. And to better understand the market, he read over 400 personal finance books. Eventually he even wrote two of his own: "Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School " and "The Global Expatriate's Guide to Investing: From Millionaire Teacher to Millionaire Expat. "
On his blog, Hallam highlights a few of his favorite books for beginner investors. "Don't mistake simplicity for something substandard," he warns. These books might be a good introduction to the industry but that doesn't mean they don't pack solid advice.
Here are five books to pick up if you want to start investing but don't know where to start.
In this book, Schultheis breaks down the complexities of investing into three simple principles: Don't put all your eggs in one basket; there's no such thing as a free lunch; and save for a rainy day. That's it.
"Promoting a low cost, index fund solution to investing, he guides his readers as if he's your affable neighbour, explaining the process over coffee," Hallam writes. "You can enjoy this book from cover to cover in a single afternoon."
Farrell fills this tome with easy-to-understand, actionable investing tips and strategies.
"Dr. Farrell's book is aimed at a broad audience, peppered with a fun writing style that's missing in the vast majority of personal finance books," Hallam says. "This could be the first and only investment book you'll ever have to read."
Solin's book is short but rich. It teaches readers how to setup and monitor investments, assess risks and avoid common mistakes.
"This immodestly titled book is comprised of only 154 pages, and this leading securities arbitration lawyer guides readers to see that again, index fund investing gives the highest statistical chances of success," Hallam says.
"The Elements of Investing " by Burton G. Malkiel and Charles D. Ellis
Bestselling authors Burton G. Malkiel of "A Random Walk Down Wall Street" and Ellis of "Winning the Loser's Game" joined forces to write "The Elements of Investing," which breaks down the skills and mindsets needed to invest wisely.
"From what I've learned, giving financial seminars, the average person has difficulty understanding terms and jargon that most financial writers take for granted," Hallam says. "As great as both of these gentlemen's other books are, this one is far easier for the average reader to understand."
"How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn " by Allan S. Roth
In this book, Roth tells the story of how he taught his eight-year-old son Kevin the basics of investing, tackling complex topics with a simple approach.
It's also worthy of sharing, according to Hallam. "I bought this book as a gift, initially, but then I had to buy two," he writes. "I simply couldn't give the original book away and be left without a copy myself."