Review: Sound Mind Investing

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

I've written before about financial books that can change your life (which lists the top five financial books I recommend). One of the books that is not on that list but certainly could be is The Sound Mind Investing Handbook - A Step-By-Step Guide To Managing Your Money From A Biblical Perspective 5th Ed. It's a book I first read 15 years ago or so (it's now in its fifth edition) and I loved it. Since then I have recommended it to both Christians and non-Christians who are just getting started investing as well as those who have floundered and want a strategy that works. I have even purchased a few for friends and they always get rave reviews.

My quick summary of the book is that it's a Christian how-to-invest publication. I'll get into what that means a bit later on, but here's a bit more detail on the book from Amazon:

Many excellent books teach God's principles of finance. Perhaps one or more of them has helped you lay a strong biblical foundation for carrying out your money management responsibilities. But as you try to apply those principles to making real-life investing decisions, it's easy to feel overwhelmed by the jargon and the sheer number of investment possibilities.

Investment adviser Austin Pryor has carefully created the "next step" guide that helps you put Godly principles of finance into motion. Whether you're a beginner or an experienced investor, you'll benefit from stepping across this bridge between "theory" and "action". Each user-friendly lesson is written in everyday English and filled with helpful visual aids. In this revised and updated edition of The Sound Mind Investing Handbook, you'll learn

• What investing is and why it's actually quite simple
• Six characteristics of investing that glorifies God
• What important steps to take to prepare yourself financially before invest
• What mutual funds are and why they make investing easier than ever before
• How to use your personal investing "temperament" and present "season of life" to make decisions and limit your risk
• How to implement an investment strategy that's guaranteed to help you keep pace with the markets
• Tax-wise ways to invest for college, including the state-sponsored 529 savings plans
• The pros and cons of investing internationally
• The rules governing IRAs and 401(k)s and which should have the priority
• How to make the calculations needed to make sure your retirement countdown is on schedule

College professors have even used this book in their finance classes because of its easy to understand format. So, whether you invest a little or a lot, these biblical principles apply to you. In short, he's made learning about investing as painless as it's going to get.

This is exactly what the book is -- a simple, easy-to-understand guide to investing according to the wisdom of the Bible.

Here's a brief "what this book is about" summary from the book itself:

The foundation of every successful investment program begins with a clear understanding of one's motivation: "What's my purpose in investing?" For the Christian, the answer is two-fold: (1) to provide financially for the needs of your household, and (2) to increase your assets to serve God more fully. This book was written to help you do both.

For non-Christians, the book is a solid choice as well. You can simply ignore the "to serve God more fully" parts.

Here are the specific reasons I like this book so much:

• It's from a Christian perspective. Other investing books will tell you how to invest, but this one will include biblical back-up and references for what it advises.

• It's easy to understand. The book takes you through a step-by-step process for understanding and making investments. Even the most novice investor can "get" what this book is talking about. And yet it's detailed enough that more advanced investors will get something from it as well.

• Simple philosophies. Their various investment strategies are simple to understand and implement. Again, they make what can be a confusing subject very clear.

• Index fund option. Their "just-the-basics" strategy invests in index fund and is a strategy very similar to what I do personally.

• Other solid money advice. The book is full of great non-investment advice (usually in sidebars) with sections like "12 Warning Signs of Excessive Debt," "Big Savings through Mortgage Pre-Payments", and "Questions to Ask When Shopping for a Money Market Fund."

• Great results. In particular, their "fund upgrading" strategy has delivered superior results over the past ten years.

I'm sure many FMF readers have already read this book. If so, I'd be interested in your thoughts on it and if your takeaway was as positive as mine.

Update: Sound Mind Investing also has a website that offers articles, investing advice, etc. -- information based on the book and more. Check it out to see if it's something you'd be interested in or check out a review of the website here.

Comments

[Suzi Orman]

College professors have even used this book in their finance classes because of its easy to understand format. So, whether you invest a little or a lot, these biblical principles apply to you. In short, he's made learning about investing as painless as it's going to get.

[Matt Jabs]

Thanks Suzi, I was blessed enough to receive a complimentary copy of this book from Matt Pryor (@SMIUpdates). I am reading through it now & am excited for the effect it will have on my life.

DebtFREEk!

[Bob]

Once I started to get serious about investing, it was one of the first books I read. I recommend it to everyone who is in my Dave Ramsey classes when we get to the part on investing especially those who are close to becoming debt free.

[Paul Morales]

Awesome post. Thanks for the recommendation. It's also good to know that college professors use these in their finance classes.

I need to start focusing on how to get rich :)

[Norma]

In 1996 I purchased this book as a primer for investing. It still sits on my bookcase. It is absolutely invaluable to new investors. He seeks to serve the Lord thru' his finances. He points out why and how we should do the same. He does so in a exciting, concise, and fun way.

[Justin Henelstrand]

sign me up

[Anastasia]

This would be a good idea!

[James]

I'd love to win this!

[Ann]

I'd love a new book to read!

[wscii]

i'm lucky enough to know the author and would highly recommend him and the book.

[James]

A new book! Great!

[Michael]

I have not read it yet but it definitely needs to be in my library, maybe get one for every member of the family

[tom]

I'm in! Thanks

[Jeff]

Thank You!

[SAH]

I would love a copy!!!

[Marc B]

In today's economy, I'll take whatever tips I can get!

[Jeff]

Thanks for the opportunity!

[Mike]

Count me in. I'd like a copy.

[Ron]

I'd love a copy

[teri]

I would love to win this book. Thanks for the opportunity

[Anastasia]

Thank you!