Studies for personal finances

Question

Over the last couple of days, I started thinking about financial independence for myself.

That idea sounds great to me as I'm 33 years old, have a good and stable income, and I could do something to save my money. It's just time for me to think about saving.

My problem is lack of knowledge and experience of finances.

Concepts I've discovered so far:

1. Idea of early retirement.
2. Financial independence.
3. Combination of first two in F.I.R.E.

Those ideas looks simple on first view: track your money, spend less, invest more. But when I'm thinking about this, I'm getting more and more questions: what does 'money tracking' mean? What does that look like? Where and how can I invest money? There are should be strategies and common-sense approaches to do this.

I looked on stocks/options/futures/bonds/etf, etc., and got some basic ideas. That sounds more or less familiar for me as I worked in investment banking area before (as software developer). But I feel that this is a big picture and I don't see details on it.

My goal is to figure out a way to keep saving and start personal investing in nearest future. So this is about building my (and my family's) financial independence and potentially early retirement (if possible).

As I realizing that I have no knowledge about finances, so I cant rely on my own choice for places to study that.

What I think I need to learn so far:

1. How to track personal finances? What instruments applicable? What the common approaches to do so?
2. Tracking is not enough, I want to learn how to manage it, how to build short and long term plans and so one.
3. Apart of tracking and planning, I would like to learn accessible ways of investment. What options for investment me (or any other guy) have? How to choose type of investment which is fit to me?
4. I'm newcomer in Canada and I'm planning to stick here for long term, so I wonder about any Canada's specific options for my goals?

So I'm asking for particular books, courses, trainings and other learnings which could help to me. Not just bunch of links which I can google by myself, but best materials accessible. I believe there is should be pool of best learnings, "classic" books or well known courses or something like this.

If that sounds as off-topic then please just give a direction.

If direction is off-topic as well, I'm asking to give me at least some learning themes so I will figure out rest stuff by myself.

Answer 1

I'm surprised that no one has recommended that you read "The Intelligent Investor" by Graham. That suggestion usually makes me laugh because it's not for noobs. Be that as it may, opinions on how to invest and what to invest in are as plentiful as the day is long and what suits one person may not suit another.

The simplest advice that I can offer is to read everything that you can about the financial markets. The starting point might be as basic as the "XYZ For Dummies" books. Build a basic foundation first. As you understand more, seek out more complex books in areas of the market that interest you (Equities? ETFs? Closed end funds? Mutual Funds? etc.) As you understand more, you you will get an idea of what intrigues you. At that point, you'll be able to judge a book by its cover (OK, maybe the Index) and determine for yourself if it's worth reading.

Understanding financial markets is like learning a foreign language. It takes time and effort, something most people don’t want to do and as a result of failing to do so, they often lose their money. Financial markets quickly take the money of the inexperienced and uninformed.

The short answer? Get a library card and worry about "best sellers" later because they're likely to be over your head now.

Good luck.