The U.S. and European debt crises have sent
world markets tumbling, and nervous investors running for the hills, wondering
if we are headed for another recession.
While most of us can
only watch from the sidelines, there are some things you can do to protect
yourself while investing wisely.
We’ve selected five of the best personal
finance books dedicated to helping Canadians who want to take control of their
money.
While it may have been difficult to find a
personal finance guide for Canadians a few years ago, the number of titles on
the shelves these days is growing.
If
you have a favourite book or financial tip, join the conversation on Facebookor by using our commenting system below.
(1) The Ultimate TFSA Guide by Gordon Pape
In the 2008 budget Canada’s Finance
Minister Jim Flaherty unveiled a program to help Canadians save for the future.
Unfortunately, the program went unnoticed by most. What many Canadians might
not realize is they are missing out on a huge opportunity to save for
emergencies and retirement without taking a hit from the taxman.
Under the Tax-Free Savings Account (TFSA)
program, all Canadians 18 years of age or older can contribute up to $5,000 per
year into a TFSA.
The contributions you make are not
deductible for income tax purposes. And investment income that is earned in a
TFSA is not taxed, even when withdrawn down the road.
The Bank of Montreal recently offered
Canadians tips for avoiding their own personal debt ceiling, saying that once
you have paid off your debts, TFSAs are the ideal way to save.
The
Ultimate TFSA Guide by Gordon Pape walks readers through
the rules of TFSAs, and how they can benefit each individual investor, whether
you’re gearing up for college or retirement.
Best
for: Savvy savers
(2) The Automatic Millionaire: Canadian Edition
by David Bach
David Bach’s guide to building wealth
focuses on the driving principle, “pay yourself first.”
Bach walks investors through a step-by-step
guide to paying off debt, investing, and realizing that you don’t have to make
a lot of money in order to save a lot of money.
Whether young or old, those new to
investing and homeownership will appreciate Bach’s conversational tone and
straightforward plan. The Automatic
Millionaire breaks down complicated financial terms into a simple guide. It
even includes a checklist at the end of each chapter to make sure you stay on
track.
Best
for: Newcomers to personal finance.
(3) The Wealthy Barber by David Chilton
David Chilton’s widely
popular book The Wealthy Barber is
written for Canadians trying to get a handle on debt, RRSPs, wills, buying
homes, and who need a little direction.
The book is more of a novel than a guide
filled with complicated terms, and confusing facts and figures. Consider it a
personal finance guide with training wheels. By the end of The Wealthy Barber, you will feel more
confident in your knowledge of the Canadian financial world and ready to move
on to a two-wheeler.
Chilton structures The Wealthy Barber as a narrative
surrounding three characters in their late 20s looking for money advice.
Chilton’s guide blends fiction with the facts of investments and debt in
Canada.
The Wealthy Barber has sold over 2 million
copies in Canada, and is still widely referenced as a introductory guide to
personal finance. However, it was published in 1989, and therefore doesn’t
touch on current topics such TFSAs. However, Chilton is releasing a follow-up
book, The Wealthy Barber Returns,
in fall 2011.
Best
for: People who find personal finances boring or
intimidating.
(4) The Complete Idiot’s Guide to Personal
Finance for Canadians By Lori M. Bamber
This Canadian classic offers a
comprehensive guide to personal finance. The latest edition covers:
· How to
write your own financial plan
· Who to seek
out for the best financial advice
· What you
need and where to get the best insurance
· How to
minimize your taxes and maximize your returns
· How to
invest in stocks, bonds, and mutual funds
· All you
need to know about getting a mortgage
· How to get
started investing online
(5) Shell Shocked: How Canadians Can Invest
After the Collapse by John Stephenson
Written by a Bay Street veteran, Shell Shocked details the benefits of
living in Canada post-2008 financial crisis.
From buying and investing Stephenson makes
the case for Canada as the best place for Canadians to invest in.
Shell
Shocked offers a fact-based analysis and explains
what to invest in and how.
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