The 7 Best Personal Finance Books Worth Reading
Read any of these 7 personal finance books to take control of your financial life by getting out of debt, budgeting, saving, and investing.
Most of us our not financially literate. We were never taught in school how we should handle money or our parents didn’t teach us the right financial habits. For most of us, we need to rewire our brain financially when it comes to the main tenets of personal finance — budgeting, paying off debt, saving, and investing. We need to look to the experts who have spent years studying how best we can build wealth and live a successful life. Check out these 7 personal finance books to begin your path of financial literacy.
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Rich Dad Poor Dad is the pioneer of personal finance. What I love about Kiyosaki’s philosophy is that he breaks it down into regular people’s terms.
He had a rich dad and poor dad growing up. The rich dad dropped out of school and was an entrepreneur, while the poor dad had a PhD.
The poor dad taught him to go to school and do well to then find a job and make money. But, the rich dad taught him that the rich don’t work for money. Read the book to understand what that means.
He delves into what is an asset vs. a liability, the importance of cash flow, and how to use tax laws to your advantage. Basically all the tools you need to understand how the financial system is built and how you can succeed in the ecosystem. Like he says, the rich built this system. Once you learn the system, you can be rich too.
Secrets of Six-Figure Women will empower any women looking to take advantage of their inner strength. At the time of writing the book in 1998, Stanny reported that women made $25,000 a year on average. In 2018, women’s peak salary was from the ages of 35 – 44 where they made on average $45,606 a year.
Yet, there are a growing number of women who make over $100,000. Stanny interviews these women, who have an average income of $500,000. Stanny also looks at the other side of the coin when she interviews women who are under-earners, always trying to make ends meet.
You will learn how to value yourself and find a high-paying job, as well as how to let fear and challenges motivate you rather than stop you.
The Total Money Makeover is a step-by-step guide for getting in control of your financial life by following 7 “baby steps”.
These baby steps include (1) creating an emergency fund, (2) paying down debt, (3) putting more more money in your emergency fund, (4) investing for retirement, (5) creating a college fund, (6) paying off your mortgage, and (7) building wealth by investing.
Dave Ramsey gets straight to the point with these lessons and doesn’t sugarcoat anything. This book is perfect for you if you are in massive amounts of debt and need to figure out a budget and quick debt payoff game plan.
This plan is not for the weary — get ready to pay off those credit cards and then cut them up and throw them in the trash.
Hardy in The Compound Effect dives into the golden rule in finance, and pretty much life: consistent small steps every single day will multiply into something huge over time.
Whether its learning how to figure skate at 30 and going to the rink every day for a year or investing $5 a day in a mutual fund for a year, your efforts will grow.
Hardy calls us to forget about immediate success, but look for immediate alignment with our core values. Live your life in the moment and take advantage of everyday to take another step to your grand success in the future.
The Millionaire Next Door will show you how simple it truly is to build wealth. The book explains that income does not equal wealth.
You know that person that drives a Mercedes and lives in a $4,000 sq. ft. house? Yea, they’re probably broke. That guy that’s driving a 2005 Toyota Camry, mows the lawn every Saturday, and wears the same outfit every other day? He’s loaded.
To build wealth, these millionaires lived well below their means for years. The broke person probably has a good paying job but tries to keep up appearances and ends up spending all of their income.
Check out this book if you want to build strong financial habits.
The 7 Habits of Highly Effective People is a game-changer. This book has so many nuggets of wisdom that will not only change your perspective on your personal finance, but how you live your life.
Covey dives into how you can shift your mindset to become an effective person, which is the best version of yourself and live your happiest life.
The habits include (1) be proactive, (2) begin with the end in mind, (3) put first things first, (4) think win-win, (5) seek first to understand then to be understood, (6) synergy, and (7) sharpen the saw.
If you feel stuck in your life, this book will be the catalyst for you to change your whole perspective on life, which will help you build wealth.
On My Own Two Feet is the perfect guide for women to understand the basics of personal finance for the financial clueless. The book focuses on women because we live longer and divorce is a real thing.
The book preaches that we only need to do three things to reach financial nirvana: (1) save, (2) invest, and (3) protect.
Specifically, you will learn about savings, credit cards, insurance, budgeting, investing, retirement, buying a home, cars, income taxes, and love and money.
If you need a crash course in personal finance then read this book that is written for women by women.
What books are you going to read? Comment below.
This post contains content this is for informational purposes only, and should not be considered legal or financial advice. Please read my Disclaimer for more information.
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