While our ancestors may have led fulfilling lives as humans by just hunting games and cultivating the field, the modern man cannot effectively navigate this world without money.
Therefore, financial literacy is imperative. Just as we study to excel in religion, arts, and sciences, we also need to study to excel financially.
Stacked away in pages of various books are the pearls of wisdom of people who have succeeded financially. And anyone who is interested in making good financial choices can pick up these tips and grow their money.
In this article, we will list some of the best personal finance books that will be helpful to you in becoming financially free.
Why Read Personal Finance Books?
Someone might ask, ‘Must I read finance books to make it financially?’ Well, here is the answer, you have to. First, schools did not teach money management.
There was and is still no provision for students in the organized academic system to learn about money. That is why there are a lot of academic heavyweights that have failed financially.
That is why you should read finance books, to make up for the lack of financial literacy. If you are currently wondering what are the best books to start learning about finance? What is the best book on making money? What is the best book to save money on? I got you!
I meticulously selected the books in this article, and they have actionable knowledge that can transform your finances. If you will take your finance to the next level, check out the best personal finance books ever.
Best Finance Books for Beginners
Below are some of the best personal finance books for starters:
1. Rich Dad, Poor Dad
Is Rich Dad Poor Dad worth reading? A loud yes and I’ll tell you why
No one can talk about money management books in this 21st century and ignore Robert Kiyosaki’s bestseller. He and Sharon Lechter wrote and self-published this book in 1997 but published it commercially in 2000.
It is one of the finance books that has sold almost 40 million copies.
The thing that stands out in this book is the fact that the authors destroyed the notion that people can only be born rich.
The book contains financial lessons one can apply to their life and succeed, and it doesn’t matter if you were born with a silver spoon.
It is not surprising too that the book advocated for financial literacy, which is the reason you should read finance books.
In summary, Rich Dad, Poor Dad teaches few things:
- Pursue financial knowledge.
- Invest in assets, they appreciate and yield more money as opposed to liabilities.
- Never eat up all your earnings. Save some for rainy days.
- Make your money work for you.- You cannot get rich with your money sitting in a savings account. Invest in appreciating assets
- Winning means not being afraid of losing- Never be afraid to take calculated risks. Those who play it safe never make it big
- Pay yourself first- Every month, first invest in your income-generating assets, the rest of your expenses should be next to it.
Rich dad, poor dad has been translated to so many languages all over the world and it has few lessons for anyone seeking financial success. You can buy the book and start studying now!
2. The Richest Man In Babylon
Arguably one of the best personal finance book you’d come across and one thing we love about this book is its timelessness. George Clanson wrote this book in 1926 and almost 100 years later the lessons are still valid.
The book’s setting is Babylon. In the book, a rich man leads a young man to wealth by furnishing him with lessons on finance.
Here are some lessons he dropped for the young man:
- Spend lower than you earn and then save the rest.
- Multiply the money you saved.
- Get mentorship from people who are excelling in their field.
- Make sure you learn about a business before investing in it or you will lose your money.
- Create a system that gives you consistent cash inflow.
- If you are not smart with the money you got, it will vanish.
- Do not save less than 10% of your income. It won’t affect your living standard.
- Invest in education (You could say Clanson was inadvertently telling someone to read best personal finance books.)
- Knowledge gathering and application gives you an edge in making money.
You can see that these tips are what modern financial coaches also teach.
3. The Financial Diet
If we are talking about the best personal finance books for beginners, then this is another perfect book.
Chelsea Fagan and Lauren Ver Hage in their book gave young people, especially some tips about budgeting, repaying debts, and even the investments young women should venture into.
The duo did not stop there; they gave tips on how to make small and smart daily decisions on money. This accumulates in the long run to a tangible amount of money. The tips in this book, if followed, to the latter, will yield a positive result.
Wall Street Journal Complete Money and Investment Guidebook
Dave Kansas, who is the author, is one of the finest US business journalist. In fact, he edits the Wall Street Journal money and investing section.
In that book, he broke down the rudiments of the market, investing and the methods one can use to get a financial breakthrough.
Dave Kansas’s book gives the basic information any JJC needs to do well in the market.
He advised on investment in bonds and stocks. Lastly, Dave Kansas admonished that anyone who is investing in whatever should pay heed to the economy of the country they are planning on investing in.
It is also important to listen to government policies as they will most likely affect businesses.
4. The Index Card: Why Personal Finance Doesn’t Have to Be Complicated
Helaine Olen and Harold Pollack wrote this book and published it in the year 2016. The book got its idea from Pollack’s index card of financial advice written in 2013. He posted the index card online, and it had nine rules.
In 2016, he and Olen collaborated to turn the index card into a full book. One reason this book is popular is how the authors simplified the message they were passing. Here are some of the useful things they had to say about finance:
- Save 10 percent of your income.
- Never sell or buy individual security.
- Always pay credit card every month in full.
- Ensure you get your 401 (k) or any kind of contribution from your employer.
- Pay attention to fees. Avoid actively managed funds.
- Make financial advisors committed to the fiduciary standard.
- Promote social insurance programs to help people when things go wrong.
You can get a copy of this insightful personal finance book to level up your financial knowledge.
Best Books On Money Management
Below are some of the best personal finance books that teach money management:
1. Your Money Or Your Life
Vicki Robin and Joe Dominguez are the authors of this book. They published this book in 1992 which was a best-seller after Oprah Winfrey talked about it on her show.
The authors of this book chronicled their experience when they had to live and survive in the most minimal way possible.
Your money or your life seeks to change the way readers see money. Robin and Dominguez lead a frugal life with the minimum resources available. In their book, they listed 9 steps that will help one actualize financial independence. Here are a few things the book teaches:
- Saving money by maintaining good habits instead of budgeting strictly.
- Investing your savings and generate more money.
- How to pay up debts.
- Removing things that cause unnecessary expenses, especially if they are not eco-friendly.
2. The 60 Mins Money Plan
Sometimes, the problem isn’t that we do not get money; the problem is we do not have an adequate plan for that money.
Since we don’t have any plans, we spend the money carelessly. Taylor Medine wrote this book for this group of people.
The 60 mins money plan is an easy-to-use guide for a beginner in the world of financial management. The first thing the book teaches is how to make a budget.
It leads you through 60 minutes’ friendly exercise that helps you come up with a plan that suits you. One fine thing about the book is that the diction is simple and easy to understand. It is not laden with financial jargon that might confuse someone, especially a beginner.
3. Following Your Money
Edward Downs wrote a small book titled following your money. He especially made this book for millennials.
It is an excellent book to give a teenager whom you want to teach money management early. Since financial literacy isn’t taught in schools, this book might be one good way to set on a course to financial freedom.
Even though the book is written with millennials in mind, it contains money lessons that can still work for every other person.
For something to impress millennials, it has to be easy to comprehend and engaging, and you can be sure to follow your money is all that and more.
Just like other books in this article, Follow your money is not just all theories. There are actionable steps one can take towards meeting their financial goal. One of those is the 60 to 90 minutes per week financial commitment that the reader can do to boost finances.
4. Twenties In Your Pocket
Kate Nixon Anania is the author of Twenties in Your Pocket. It is one of the best personal finance books of the 21st century.
In this book, the author tackles even subjects that people do not really talk about in finance classes which are banking, salary negotiation, and student loans.
There are also actionable ideas on how to manage and repay debts, how to properly pay tax, and tips on how to financially plan for retirement.
Kate Nixon in her book recognizes that there will always be limited resources and so she gives tips on how one can maximumly use these limited resources and lead a great and fulfilling life.
Last, she strung together money advice that are specific to women and then for couples who want to achieve financial success together.
5. Minimalist Budget
If you have been paying attention, you’d have noticed that these best personal finance books have some things in common–Cutting down expenses. Budgeting.
One cannot achieve financial freedom unless they will let go of some unnecessary expenses unless they are willing to properly allocate income to the things that matter the most.
In this book, Abel Gray teaches how to do just that. The book tackles some financial issues such as debt, assets and income, financial planning, goal settings, budgeting, and a minimalist solution to financial struggles. Looking for ways to achieve more with less? Abel Gray has something interesting for you to read.
Best Books For Investors
There is no gainsaying that one pathway to financial success is investment. Here you will find some of the best books you can study and make sound investment choices.
1. The Essays of Warren Buffett: Lessons for Investors and Managers
Who else to talk about investment than the man who is arguably the most successful investor of all time.
Warren Buffett was the world’s richest man in 2008 and currently, he is in the 6th spot. In 1999, the billionaire released the first edition of his essays.
In this book, Buffet poured out all he has learned as an investor. And one quality he has always pushed for other investors to pick up is patience.
Patience to allow your investment to grow. Buffet outlined three mistakes some people make while investing, which are: investing in or leaving a venture too early, investing in a venture that is too expensive, and then lastly investing in something that will be popular only for a while. To pick the brain of this brilliant investor further, get yourself a copy of his essays.
2. The Four Pillars of Investing
William Bernstein, the man who turned $100,000 to $1.8 million by buying US stocks, is the author of four pillars of investing. In his bestseller, he lists the four pillars which are:
- Know that investment is a double-edged sword. You could either get returns or risks. Diversify your investment.
- History repeats itself. Study the history of the investment you want to do.
- Your psychology affects your investment.
- People who sell investment opportunities to you are not your friends. They’re after their own pockets. Know this and invest wisely.
Willian Bernstein opines that anyone who takes these pillars seriously will excel in investments.
3. Rich Dad’s Guide To Investing
Robert Kiyosaki makes a comeback into the list with his book, Rich Dad’s Guide to Investing.
Just as he mentioned in his previous bestseller, Kiyosaki believes everyone has the potential to make wealth.
But what makes the difference is the knowledge, skill, and patience that is required to do wise investments. And so, he drops three tips that should guide anyone interested in investments.
- Be financially literate.
- Self-invest first. Build a brand or a business.
- With the lessons learned from running your business invest in other businesses.
4. The Little Book Of Commonsense Investing
John Bogle, the founder of Vanguard Group, is the author of this book. He published the first edition of his book in 2007.
While this book might have some financial jargons that might be hard for a beginner to understand, it is also a well of ‘commonsense’ for anyone who is investing in stocks.
In his book, index funds with low charges and broad diversification should be held for long as it will give you a sizeable chunk of market returns.
The author is critical about investments with high charges and advice readers to be careful while choosing them.
5. Investing For Dummies
One thing I love about the authors of this book, Tony Levene and Eric Tyson, is how they used humor to make the book exciting to read.
I know there is nothing funny about making money, but if one can laugh while making money, why not? This book teaches how you can analyze an investment and decide if it is actually something worthwhile.
The authors offer tips on how to choose funds and stock. Last, the authors encourage all investors to put their money in small businesses and real estate.
Best Personal Finance Books
1. The Total Money Makeover
Dave Ramsey is the author of The Total Money Makeover. It is a bestselling book that teaches the reader all that Dave Ramsey has learned and taught about money.
The book has seven actionable steps that you can take and lift yourself out of debt. Ramsey also added real-life stories of people who put his principle to work and reaped the benefits.
He also debunked a handful of money myths that you may have come across. There are few things the total money makeover will teach you: how to pay your debt, how to save for retirement, and how to get an emergency health fund.
2. The Money Book For The Young, Fabulous, And Broke
Suze Orman is the author of the money book for the young, fabulous, and broke. She is a perfect proof that the power to transform yourself into that person you want to be lies in your hands.
Orman was a server before she became a TV star. In her book, she deals with many aspects of life that affect the finances of the young like marriage, college debts, investments, purchase of assets and liabilities, retirement savings, and their career.
She gives an in-depth analysis of each and advice on what young people can do to make more money.
The Millionaire Next Door
Thomas Stanley and William Danko wrote this book in 1996 and it makes our list of the best personal finance books. Here are some points to take away from their book.
- Your spending should be lower than your earnings.
- Do not keep up with others. Live your means.
- We cannot overemphasize investments.
- Don’t eat your tomorrow today.
- Be frugal.
To get more financial insights, you can purchase the millionaire next door and be on your way to financial freedom.
3. The Psychology Of Money
Morgan Housel is the author of the psychology of money. The author published it in 2020 and already it is making waves for being one of the best personal finance books.
Housel reiterates that how we behave with money determines if we spend the money, save, or multiply it. He admits that getting people to behave rightly with money is hard.
The author shared some true stories that will help the reader make the right financial decisions.
4. The Barefoot Investor
Scott Pape wrote this book which is basically a money plan, and many people across the world follow his plan. His book stands in the hall of fame as one of the best personal finance books of all time.
In his book, Pape outlined three buckets that he named blow, mojo, and grow. Your blow account is where all your income lands and where you take out money for daily expenses.
The mojo bucket gets its content from the overflow of the blow and it is where you keep emergency funds.
The last bucket is the grow, where you keep money for investments and wealth-growing opportunities. It gets its content from the overflow of the mojo bucket. There are lots more to pick from this gem of a book if you read.
Are Finance Books Helpful?
We have listed some of the best personal finance books we think can take you to the next level financially.
But perhaps there might be a question lingering in your mind. You might have even heard people be critical of finance books. Some may have even asked, ‘Are finance books helpful?’
The answer to the question is yes, finance books are helpful, but that is if YOU will put in the WORK. Show up, apply the knowledge that you have picked from the book, and watch it transform your life.
The knowledge you get from financial books will teach you how to see money. It can help you avoid financial mistakes, and it can help you grow financially.
The issue is, are you ready to put in the effort that is required? Practicing what you have learned is the only way to get these books to work for you.
Are you looking for a way to develop yourself financially? Do you want to know more about money, wealth creation, and wealth multiplication? Are you interested in cultivating healthy financial habits? Do you want to take charge of your life? Are you seeking for insights concerning investments?
Good news! You can do these and more if you study and implement all the lessons in some or all of the best personal finance books we listed.
There are rare gems, and they will guide you into becoming that person you want to be financially. Well, what are you waiting for? Start reading!
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