Summary

An individual with a background in finance from their family and education is committing to reading about finance and economics for 5 minutes every weekday, using free resources and inspired by two influential books.

Abstract

The author of the article, who comes from a family of finance professionals and has an educational background in the field, has embarked on a journey to improve their financial literacy. Despite previous reluctance, they were motivated by two books, "Overcoming Underearning" by Barbara Stanny and "Rich Bitch" by Nicole Lapin, to incorporate a daily habit of reading about finance and economics for a short duration. They have been utilizing free resources, including limited articles from HBR and The Economist, and plan to continue this practice with the goal of becoming more confident and knowledgeable in the subject. The author has also provided a list of five free sources for others interested in enhancing their financial knowledge, emphasizing the importance of consistent, small efforts in learning.

Opinions

The author believes that consistent, small efforts in reading about finance can lead to a significant increase in knowledge and confidence in the subject.
They acknowledge the challenge of understanding complex financial topics but are committed to overcoming this through regular reading.
The author values free resources for learning, such as local libraries and reputable websites, and suggests these as starting points for others.
They express a personal struggle with making time for this new habit, despite having valid reasons not to, such as family and social obligations.
The author encourages engaging with finance professionals for reading recommendations and insights, suggesting that such interactions can be beneficial and enlightening.
They recommend signing up for newsletters and listening to the news as additional ways to stay informed about finance and economics.

5 Minute Habits: Reading about Finance

Of all the people in the world who are comfortable reading about finance, should be on the top. My dad is an accountant, My mom is a economist and a professor. That’s right- she teaches about finance and economics.

I also had a compulsory paper in my engineering coursework that I topped. (reality : i asked my mom to give me a crash course the day before).

I work in business intelligence, and most metrics tie directly or indirectly to costs and profit.

But, do I know anything about finance? Barring the ‘Earn, Save then Spend’ philosophy reluctantly absorbed from my savvy parents, nothing else comes to mind.

Do I handle the family money and investment portfolios? If paying bills counts, maybe.

Did I think I think I could ever learn to become confident and conversant. Until recently, no.

What changed me?

Two books: Barbara Stanny’s Overcoming Underearning and Nicole Lapin’s Rich Bitch. I loved both and one of the common steps that both books advocate is reading about finance.

Since the start of 2020, that’s what I have been doing. 5 minutes every week day, I have been reading something on finance or economics. It is truly trying and laborious as the authors warn. I hope to reach the level of ‘what-am-i-doing’ stage by the end of the first quarter and possibly ‘not-completely-over-my-head’ stage by the end of the second.

When I shared this with a friend the other day, she asked, what are you reading?

Valid question of course.

I exhausted my 3 free articles of the month on HBR in the first three days. Next, I dipped into the husband’s collection of the Economist. I realized unhappily, that it will probably last me for the year.

Much to the dismay of the Creative-Excuse-Maker in me: searching for sources of financial information was not going to be my problem. Yes, making the effort to read, understand and retain will be. Since I am only aiming for five minutes every weekday, I had cut off my other valid exit options too — like caring for a newborn, household duties of a mom of two, social obligations that seem to fill my calendar courtesy my school going, uber-friendly firstborn. (Not even a geographical move mid year seems to have tamped that down. Still not sure if i am to be amazed at her friend-making skills or appalled at my low expectations.)

But, back to reliable sources for others who might want to challenge themselves to similar not-so-lofty goals. Here are my top five free sources:

Haul yourself to your local library. They usually carry the latest publications of The Economist, The Wall Street Journal, etc. Read in the atmosphere that is amazingly conducive to absorbing even the most difficult of topics.

Borrow books and magazines on these topics. Note: some libraries permit only onsite consumption of magazines. In that case, go for periodicals and publications from sources like HBR, etc. that are permissible for lending.

2. Hop over to the websites of renowned sites like CNBC, Learnvest and so on. A simple Google search is your best friend.

3. Invite friends and family who work in the sphere for coffee/ snacks/ dinner- accountants, financial planners, finance journalists, analysts in the domain of stocks, investing, trading. Basically anyone you know- simply ask for recommendations on what your next read should be. They will be flattered and who know, they might even share an incredible tip or more.

4. Sign up for newsletters from places like HBR on the topics of Finance, Economics, etc. You can start receiving short articles and tips via emails that makes for easy-to-digest information.

5. Listen to the news. Simple and time tested.

Is gaining a better understanding of finance, investments and economics on your mind? Are you taking any steps to further your knowledge on theses topics? What steps are you taking?

Please share your techniques and ideas in the responses as well as your favorite among the five I listed.