How to better understand Economics/Finance?

[sr82]

Hi,

I am very interested to learn how the Financial world works. It seems like some people have a very good connected big picture of how money works, and what are the different drivers in the financial system. They are also able to tell how different variables do affect/will affect the economy.

While I am not completely clueless, I feel like I don't know how to connect the dots and make the big picture work.

Can anyone here recommend some good reading material or other resources to help me understand the financial world? I think it would make me smarter about my money, and also open my mind up to new possibilities if I understood our environment and system a little better.

Thanks much.

[flipchick1127]

A very, very great and comprehensive site I would recommend to anyone is http://personalfinance.byu.edu. This site has beginning, intermediate, and advanced lessons about personal finance about just about every topic you can think of. I have personally looked at many of the lessons on the site and they are very useful.

Another suggestion is to join blogs. I have joined quite a few and added them all to Google Reader where I can see them all in one place. It is like having your own magazine that is constantly updated. I have my own blog that I just started about personal finances, but there are some really reputable ones out there. Some that I like are The Simple Dollar, Carnival of Personal Finance, Frugal Dad, Get Rich Slowly, Cash Money Life, Free From Broke ,and, of course, WiseBread. You can find quite a few more by doing a google search.

I don't really know much about economic ones. Good luck trying to learn more!

[starshard0]

What specific topics are you looking for? Are you leaning more towards actual economic theory, or are you more interested in the personal finance side?

[Julie Rains]

I also tend to think of Economics as being distinct from Finance, though there is intersection, especially lately. At Wise Bread, I think that Philip and Xin do a great job of examining how the economy works (or doesn't work). Nora and I (Julie) talk about personal finance issues as do all the WB bloggers. What's going on in the economy affects personal finance decisions but to an extent those decisions (where to bank, how to evaluate credit card offers, the mechanics of investing, etc.) can be made independent of the economy, or they could have been until the past year or so.

If there are specific questions, or issues you are starting to consider, let us know.

[the weakonomist]

There is more to finance than personal finance. It was initially born out of the detailed record keeping required to keep shareholders happy. Finance is essentially where economics and accounting naturally come today. As someone who majored in finance and works at a bank, I have some experience in the matter.

As for learning more about finance and economics, that is one of the founding principles of my blog, Weakonomics.com.

I can't waste an opportunity to plug my own blog either. When I started writing last year I started the "College of Weakonomics". It's a series of posts designed to help everyone learn more about money. The topics range from the simple (Intro to Economics and How Banks Make Money) to the more complex (short selling and the economic history of the Clinton years).

I have 22 such posts so far, but plan on doing 1-2 a month always. I keep a list of classes to do, and have about another 20 in the pipeline already.

[financialnut]

If you really want to get a good understanding of economics and finance, take a college course or two. I have read a lot of interesting information, but sometimes unless it's taught in a linear fashion, it's hard to "connect the dots."

[starshard0]

I'm sure the library has some good books on the subject. My girlfriend recently picked up a financial book at my suggestion, and hopefully she'll learn some fiscal responsibility.

[jasonM]

I agree with flipchick1127. Joining finance forums and reading what people have to say about the economy, stock market etc is a really good way to start understanding the finance world around you. When it comes to books or online finance forums i think that reading forums is a more practical and fun way to learning about finance because people post almost daily so the information you are getting and the topics being posted are most up to date and applicable to your life. I hope that helps!

[BGMeyer]

Originally Posted by starshard0

I'm sure the library has some good books on the subject. My girlfriend recently picked up a financial book at my suggestion, and hopefully she'll learn some fiscal responsibility.

ABSOLUTELY! Libraries are FREE, they are reasonably unbiased, and although the info is not always the most up to date, getting books that aren't more than 2-3 yrs old will help. Also: check out Money Magazine or Forbes or what magazines cover the subjects you want to learn about. Again, libraries have them for free to browse through there, and some have back copies to check out.

Now, Starshardo, remind your girlfriend to return her books on time.....
barb

[jasonM]

Libraries are FREE, they are reasonably unbiased, and although the info is not always the most up to date, getting books that aren't more than 2-3 yrs old will help.

Speaking of new up to date books, I recently came across a really great book "The Power Curve" written by Scott G Kyle. The book is great for beginners and experts alike since it goes over the basics and helps you build a strong foundation for stock market trading and goes into depth about lucrative investment strategies. I was actually recommended this book over a finance forum and it really help me with the reorganization of my portfolio and rethink my trading strategy. If you are interested, i believe that you can read the first chapter of the book online thepowercurve.com. let me know what you think.