NEW NORMAL: Finance advice for saving, borrowing and spending
Are you saving, borrowing or spending? There's lots of books out giving advice on the moves you should be making with your money, but how does that advice stack up against more traditional economic thinking?
A Yale economist selected the 50 most popular personal finance books on Goodreads and their advice on issues including mortgages, savings strategy, debt management, and investment allocation.
News 12 Long Island’s Elizabeth Hashagen was joined by James Choi - a Yale professor of finance and author of "Popular Personal Financial Advice versus the Professors.”
Economic theory says your savings rate should be low in your 20s and super-high in your 40s to make up for the fact that you weren't saving as much in your 20s.
Meanwhile, when it comes to mortgages, there is a sharp divergence between economists and popular authors - 11 books characterized adjustable-rate mortgage as riskier than fixed-rate mortgages.
Retirement is also a hot topic – with 15 books giving advice on spending in retirement.
Does classic economic theory still provide a good overall guide for how to maximize your financial well-being?