Save yourself, borrow yourself or expenses? There are plenty of books out there giving advice on what moves you should make with your money, but how does this advice compare to more traditional economic thinking?
A Yale economist has selected the 50 most popular personal finance books on Goodreads and their advice on issues such as mortgages, savings strategy, debt management and investment allocation.
News 12 Long Island Elizabeth Hashagen was joined by James Choi – a Professor of finance at Yale and author of “Popular Personal Financial Advice versus the Professors”.
Economic theory says that your savings rate should be low in your 20s and very high in your 40s to compensate for the fact that you aren’t saving as much. many in their twenties.
Meanwhile, when it comes to mortgages, there is a strong discrepancy between economists and popular authors – 11 books have called variable rate mortgages riskier than fixed rate mortgages.
Retirement is also a hot topic – with 15 books giving advice on spending in retirement.
Does classical economic theory still provide a good general guide on how to maximize your financial well-being?