We all have pastimes that allow us to unwind mentally. One such pastime is reading, which also enhances our understanding. In a constantly changing financial environment, it is crucial for finance professionals to remain informed about current trends. Reading serves as an excellent means to achieve this, since the concepts found in many of today's top finance and business publications can assist leaders in fine-tuning their strategies, adjusting to market shifts, and managing new tools and technologies. Here are the five books the modern day finance leaders should read.

The Psychology of Money

Numerous outstanding books have been published that explore the concepts of money, finance, and markets in an accessible way. A recent title that has appeared on shelves is ‘The Psychology of Money’ by Morgan Housel. Housel's work has gained significant popularity among a diverse audience. To begin with, the author avoids common clichés often found in personal finance literature, such as quick-fix schemes and universal solutions. Its widespread appeal is not surprising, given that the book is filled with engaging examples, interesting information, and well-supported arguments grounded in data, making it both an easy and enjoyable read. This book contends that an individual’s financial priorities should derive from the kind of life they aim to lead, emphasizing that the two are intertwined.

Moreover, the author’s intent to merge behavioural science with financial results is evident throughout the book. He emphasizes that people's financial choices are seldom motivated by logic or mathematics, with most pivotal financial moments traceable to levels of endorphins and cortisol. In summary, Housel argues that an individual's financial health is less about their intelligence and more about their behavior.

The Fourth Turning

A quarter of a century ago, Neil Howe and the late William Strauss captivated audiences with their bold theory regarding American history. By examining the past 500 years, they identified a clear pattern: modern history unfolds in cycles, each spanning roughly eighty to one hundred years about the length of a typical human lifespan with every cycle consisting of four eras, or turnings, that consistently follow the same sequence and each last around twenty years. The concluding breakdown as the fourth turning has always been the most dangerous, representing a time of civic turmoil and national mobilization as intense and transformative as the New Deal and World War II, the Civil War, or the American Revolution.

Insightful, serious, yet ultimately empowering, The Fourth Turning Is Here revisits history and delves into the collective psyche of each active generation to provide context for our present crisis, examine the varying ways we will be impacted by the political, social, and economic challenges ahead, and demonstrate how our nation, communities, and families can best prepare to confront these challenges directly.

Die with Zero

Die with Zero, authored by renowned energy trader Bill Perkins, presents a thought-provoking framework aimed at prioritizing fulfillment over financial wealth. The book introduces compelling principles that Perkins employs to navigate personal finances and, more crucially, life itself.

Bill Perkins didn’t develop the concept of Die with Zero after amassing his fortune. It’s rich with anecdotes from his early career on Wall Street when he earned $16,000 a year, to the experience of getting fired and feeling adrift in life. His current life is that of a hedge fund manager, film producer, high-stakes poker player, and active Indiana Jones for various charities. Dubbed the Last Cowboy by the Wall Street Journal, Bill Perkins is said to have generated over $1 billion for his former firm in a span of five years.

The Advantage

There exists a competitive edge that might be more impactful than any other. According to New York Times best-selling author Patrick Lencioni, the fundamental distinction between thriving companies and average ones is not about intelligence or knowledge but rather about their health. In this book, Lencioni combines his extensive experience along with various themes discussed in his previous bestsellers to present a novel idea: a detailed and unified examination of the extraordinary benefit that organizational health offers.

In simple terms, an organization is considered healthy when it is complete, cohesive, and consistent, with its management, operations, and culture working in harmony. Healthy organizations excel compared to their peers, are devoid of politics and confusion, and foster an environment where top performers are reluctant to leave. Lencioni’s first non-fiction work equips leaders with an innovative and accessible framework for achieving organizational health, featuring stories, insights, and personal anecdotes from his consulting work with some of the nation’s top organizations. Amidst the age of overwhelming information and rapid changes, relying solely on intelligence for competitive advantage is no longer sufficient. The Advantage establishes a fundamental framework for conducting business in a novel manner, one that enhances human potential and aligns the organization with a shared set of principles.

The Millionaire Next Door

Many individuals aspire to be millionaires and enjoy a luxurious lifestyle. In The Millionaire Next Door, authors Thomas Stanley and William Danko share unexpected insights (based on two decades of research) about how most self-made millionaires actually live and accumulate their wealth. This concise summary of The Millionaire Next Door highlights the main concepts from the book.

While many people associate wealth with an abundance of material possessions, a lavish lifestyle often indicates high expenses rather than true wealth. The authors define a “millionaire” as a person who possesses considerable assets such as cash, investments, and appreciating assets and has a net worth of at least $1 million.

 

Also Read: Five Favorite Books of Business Leaders and Why

It is clear that some millionaires inherit their fortunes and/or have such substantial incomes that they retain a net worth exceeding $1 million after factoring in their high expenditures. Nevertheless, these individuals often fall into the UAW category, living extravagant lifestyles while feeling insecure about maintaining them. However, the mainstream media tends to highlight such extravagant lifestyles, which skews our understanding of “how the wealthy live” and encourages a high-consumption culture that can lead to financial struggles for many in the younger generation.