Are you
saving, borrowing or spending? There's
lots of books out giving advice on the moves you should be making with your
money, but how does that advice stack up against more traditional economic
thinking?
A Yale economist selected the 50 most popular
personal finance books on Goodreads and their advice on issues including
mortgages, savings strategy, debt management, and investment allocation.
News 12 Long Island’s Elizabeth
Hashagen was joined by James Choi - a Yale professor of
finance and author of "Popular Personal Financial Advice versus the
Professors.”
Economic theory says your savings rate should be
low in your 20s and super-high in your 40s to make up for the fact that
you weren't saving as much in your 20s.
Meanwhile, when it comes to mortgages, there
is a sharp divergence between economists and popular authors -
11 books characterized adjustable-rate mortgage as riskier than fixed-rate
mortgages.
Retirement is also a hot topic – with 15 books giving advice on spending in
retirement.
Does classic economic theory still provide a good
overall guide for how to maximize your financial well-being?