If you want to manage your financial situation, it is important for you to have the right kind of knowledge. Books can really give you good deal of information with relatively little cost. It can be argued that a pile of book can’t replace an experienced consultant, but one good book can provide a good foundation of knowledge. With enough knowledge, it will be easier for you to work with financial consultants and you can make better decisions. Here are things you should do when choosing a financial book:
- Choose the right topic: Finance is a broad field, so you need to find books that directly deal with your situations. As an example, if you want to start saving, make a budget for the first time or eliminate debt for good, then you should choose the best books available.
- Find new ideas: You shouldn’t buy a book, if it offers the same thing that you can easily find online. The author should be innovative and yet trustworthy. It means that the method has been proven to provide good financial results for many people with specific financial issues. Forget buying a book if it rehashes things that you have read previously. Many financial books simply modify common methods and facts for a specific group of audience.
- Check the table of contents: Check in Google Books or other online snippets of books that you are interested in. Make sure that the book actually addresses your core financial problems. A book about debt management may end up discussing a lot about budget management, which is not appropriate, based on your preferences.
- Make sure there’s a glossary of terms: It’s true that you can easily use your smartphone to find definition of a financial term, but the book usually gives more relevant explanation about a term that matches the topic.
- Read the preface: Many people skip the preface, but it is actually a way for authors to communicate their purposes. By understanding the personal philosophy of the author, you will better understand how the book is written and how it should be understood. Preface is usually included in online snippets, so you can check them without going to the bookstore.
- Check the language style: Some books are written for financial experts, while others are for common people. Avoid buying text books for students. They may discuss about budget creation, but actually contains complex accounting methods. Again, online snippets allow you to check the language of the book.
- Make sure it contains exercises: With exercises, you can better implement anything that you have read in the book. You will be able to remedy your situations. The exercise should cover relatively mild and severe financial problems. So, even if the situation is desperate, you will understand what you should do. You need actionable steps, instead of psychoanalysis explanations on how to address financial issues.
- Read reviews: In Amazon and other online bookstores, there should be reviews from previous buyers. Make sure that the book actually helps people to address their problems.