No matter how long you’ve studied and practiced making good investments, it’s a good idea to keep reading new books to expand your knowledge base.

While the books I reference in this article are specifically aimed at newcomers to investing, just about anyone can benefit from reading them – especially if it’s your first time doing so.

A short explanation first:

These books I’m sharing aren’t about real estate per se. They cover the fundamentals of understanding and managing finances, managing your time and other resources, adjusting your mindset about money and making sound investments to grow wealth.

Before you delve into the specifics of the real estate world it’s necessary that you have a grasp on the broader principles of money and investment. I didn’t know much about real estate when I got started, but luckily, I read and listened to some wise financial authorities and that equipped me with the principles of how to make good investments. 

Going forward, it was much easier for me to understand how to make good real estate investment decisions.  In other words: start with the basics, and then the specifics will be much easier to master.

Here are 5 of the most formative and helpful books I read in my earlier years as a real estate investor. Though some of them have been around a while, they are full of timeless wisdom and practical knowledge.

1. Financial Fundamentals , by Larry Burkett

Before there was Dave Ramsey, there was Larry Burkett. Burkett was a big influencer during the 80’s and 90’s; while his books are usually flavored with a Christian perspective, they teach common sense concepts that everyone can benefit from.

From Burkett I learned the basics of budgeting and money managing – two concepts that you really need to learn before moving onto anything else. 

2. The Millionaire Next Door, by Thomas J. Stanley and William D. Danko

This one was a huge mindset-changer for me.

This book teaches you the difference between how society presents millionaires, and what millionaires actually look like.  The reality is surprisingly different. From this book I learned what sort of mentality I needed to cultivate if I wanted to become a millionaire.

Spoiler alert: millionaires usually don’t drive fancy cars and spend their money on “stuff”.  The guy you see driving an old pick-up is just as likely (if not more) to be a millionaire than the guy driving a brand-new Mercedes.

3. Rich Dad, Poor Dad, by Robert Kiyosaki

This is another mindset-changing book.  One of Kiyosaki’s core principles is understanding the difference between an asset and a liability – between things that add value and things that lose value.

It helped me understand what types of things I should be spending money on if I wanted wealth in the long-term.

4. EntreLeadership, by Dave Ramsey

This is a great read for understanding general business principles in addition to how to be a great leader.  In particular, it taught me the importance of social skills and relationships. 

After over twenty years in the real estate world, I know from experience how crucial people skills are. It’s also been my experience that people who go into investing (including real estate investing) don’t realize just how important the social aspect of a business is.  For that reason alone, this book is worth reading.

5. The E-Myth, by Michael Gerber

The big “ah-hah” moment with this book for me was understanding how to leverage processes and procedures, and time (both your own and other people’s) in order to scale your business.  Growing a business requires a lot of moving parts, so the key is to do it as efficiently as possible.  This book shows you how to do that.

Honorable Mentions

There are a number of other great reads out there that are worth pursuing.  These books will continue to deepen your understanding of sound investing and more broadly, a mindset of discipline and success:

Think and Grow Rich, by Napoleon Hill

The Richest Man in Babylon, by George S Clason

The Seven Habits of Highly Effective People, Stephen Covey

Money: Master the Game , by Tony Robbins

In addition to these resources, I highly recommend reading books and content from Robert G Allen, a big-time financial and investment influencer.  Start with his website, www.robertallen.com