Basic Financial Intuition

Finances are known to be a touchy topic. This can be further complicated by a lack of knowledge. In schools finance is taught as an equation for rote memorization. In families the knowledge tends to degrade a bit each generation, or the advice was too specific or relevant in a different market. In social circles it’s typically awkward or impolite to discuss money, although this is slowly changing in some parts of the world.

Simple questions lack sound advice for many people. Questions ranging from “How much should I save?“ or “How do I pay off this loan?”, to life-altering “Should I take this opportunity?“, or the more risky “How should I invest?“.

Basics: How wealth works for individuals

This was one of the first books I read when I was younger that just made basic simple sense and gave focused advice. Normally when I find someone who has these questions I’ll recommend one book that’s nearly 100 years old. The lessons are surprisingly relevant, and useful for anyone who wants to build a basic financial intuition. I also like this book because it’s in the Public Domain, so anyone can afford it. You of course can pay a small amount to get it in Paperback or e-book, and even audiobook formats.

You can find “The Richest Man In Babylon” for free on Archive.org.

Intermediate: Understanding businesses

Understanding how you and your team can manage money effectively is a bit of an art form, and decoding the games that can be played with a balance sheet

Financial Intelligence is my top recommendation for developing an intuition for what the numbers mean and what kind of traps or opportunities are hidden inside them.