Some book I read as consumption, other book I read as investment. Knowing the difference the two is important! Because it changes how I read.

Economists think about “goods” (just meaning like “a thing you buy”) as being either consumption or investment. Wikipedia says:

Consumption is the act of using resources to satisfy current needs and wants. It is seen in contrast to investing, which is spending for acquisition of future income.

I’m finding this is a helpful framework for thinking about reading too. Reading, re-reading, and truly understanding some books pays dividends later. Other books are for “satisfying current needs and wants”.

Books that feel like consumption to me:

  • Pop non-fiction, which is most of nonfiction!
  • Most books on a “best seller” list.
  • Page-turner fiction.

Books that feel like investment to me:

  • Books that have stood the test of time, >50, >100, >1,000 years.
  • Fiction that I would re-read (uncommon but not rare).
  • Anything I’ll talk with someone about more than once (book club, family favorites).
  • Deep-dive nonfiction on topics I want to really understand— often academic but not always.

I’m reading about 40 to 50 books per year (see Six years of reading, if you count audiobook and book I didn’t finish, which I do) — and this framework changes how I’m reading.

How I read consumption book: audiobooks and e-books, DNF easily, How I read investment books: might start as audio or kindle but then I’ll usually get a physical copy, pen in hand, sometimes write up notes afterwards, read and re-read.

There’s nothing wrong with reading for entertainment! It’s so fun! Thinking this way frees me up to focus on the books for investment, and to enjoy the books for consumption.