FiLife - Your Financial Lifeline

Your Financial LifelineTM

In partnership with The Wall Street Journal
 
 

Question

Robert Schmansky, CFP®Napfa_small
Expert Partner
Votes+2
Views129

Robert Schmansky, CFP® asked about a month ago in Financial Planning

What is the best way to learn basic financial and economic principles?

There is a lot of anxiety at times due to not understanding what's going on in the economy and how it relates to a financial plan.

What are some of the things that have worked best for you to understand the fundamentals when it comes to your investments and how they relate to the economy?

The source that sums things up the best for me is a new book by Jason Zweig called 'The Little Book of Safe Money'. More on that, and a economic principles 101 book at my post here:

http://blog.fpaforfinancialplanning.org/2010/01/25/cure-your-financial-economic-anxieties-two-easy-reads-worth-an-investment/

Keywords: economy, investments, financial plan, financial literacy

Was this question interesting?

Yes

(2)

No

(0)

Permalink | Abuse

FiLife Recommends

Answer Question
  • Share:

Best Answer

Best answer chosen by asker

John Boettcher
FiLife Contributor
Reply

Try "Economics in One Lesson" by Henry Hazlitt. Or www.mises.com

Dave Ramsey is good to clear your debt, but if interest rates are going to only go higher from here, why would you want to sacrifice your savings and wealth by paying the bank back with your GOOD dollar today, and keep the MORE WORTHLESS dollars for yourself as time goes on??

If you can live and sleep at night with the debt you have, it will only get easier and easier to pay off as we print more dollars.

If you have a mortgage out right now, the bank is assuming most of the risk, you only put a small payment down. If interest rates rise, they are not making as much on your loan, as new ones they loan out.

So if you pay back the bank with all of your HIGH VALUE dollars today, borrowing or spending money for you in the future will be much more EXPENSIVE.

Try "Economics in One Lesson" It will debunk all of the mainstream fallacies out there and give you the perfect basis for further education in finance and economics. EASY TO READ!!!!

Is this helpful?

Yes

(2)

No

(0)

Permalink | Abuse

Rschmansky_1237128389_large

Robert Schmansky, CFP® replied about a month ago

John, are you trying to upstage my recommendation of One Lesson from the link I posted?

Just joking! Great contribution, and I concur that Hazlitt had a great way of explaining ideas and fallacies. I think where the dollar goes is important, and there are several ways a financial plan should consider inflation, not to mention risks such as continued deflation.

How can I not select someone that agrees wholeheartedly with my recommendation as the best answer?

4 Answers

Sort by:
LUCKYZIMMY
FiLifer
Reply

There is a classic book that I recommend. Do a search for 'the richest man in Babylon'.

Another book I suggest is the one that I wrote on insurance contracts. Let me know if you would like a copy.

Is this helpful?

Yes

(3)

No

(0)

Permalink | Abuse

Rschmansky_1237128389_large

Robert Schmansky, CFP® replied about a month ago

Hi Luckyzimmy,

That is a great book as well. Thanks for the contribution! Rob

Kees deWit
Platinum
Reply

My favorite is Dave Ramsey's The total money makeover. The goal is to become debt free, stay out of debt and build a future for you and your family.

His plan works in good times and bad economic times.

Is this helpful?

Yes

(2)

No

(2)

Permalink | Abuse

Rschmansky_1237128389_large

Robert Schmansky, CFP® replied about a month ago

Kees, Dave has some great advice on money management, personal debt and real estate that is for sure. Thanks for the contribution! Rob

John Boettcher
FiLife Contributor
Reply

Sorry Robert, didn't see that earlier Hazlitt post!

Never hurts to say it again.

Hazlitt!

lol

Glad to hear you like him.

Is this helpful?

Yes

(0)

No

(0)

Permalink | Abuse

Matthew J. Kelley CFP® AIF®
FiLife Contributor
Reply

"Naked Economics - Undressing the Dismal Science" by Wheelan does a pretty good job of framing Econ 101 at a basic level. He makes it a fun read, too.

Is this helpful?

Yes

(1)

No

(2)

Permalink | Abuse

Answer this Question

We want to get you real financial help as quickly as possible. To help us continually improve, please provide some feedback on your experience asking our experts your question:

The more information you can provide, the better answer our experts can give you. Tell us some more about your issue and we’ll try to give you a better answer.

Generic User Image

Ask a Question

140 characters

Tips

  • Be specific and clear.
  • Be courteous and thoughtful.
  • Share some details about your situation (age, relationship, etc)
Login, Join or login with   or

Ask a Question

140 characters

Personal Finance News

Receive our Personal Finance Newsletter

Stacker Poll of the Day

What age should you start your child's allowance?

Avg 8.4
 
Avg 8.4
 
533 responses

Top Members This Week

Kees deWit
Platinum

466

FiQ Points ?
Robert Schmansky, CFP®Napfa_small
Expert Partner

178

FiQ Points ?
jerrylee
Gold

169

FiQ Points ?
GM
Silver

153

FiQ Points ?

JLynn
Platinum

139

FiQ Points ?
Linda
Gold

134

FiQ Points ?
Tonka Beans, CFA
FiLife Contributor

77

FiQ Points ?
Joseph Alfonso, CFP®
Expert Partner

49

FiQ Points ?