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5 MUST READ PERSONAL FINANCE BOOKS
One characteristic of successful people is that they read. These 5 must read personal fiance books are a good place to start.
In the book, Change Your Habits, Change Your Life by Tom Corley, his study found that reading was a key factor in the success of self-made millionaires.
The book also found that 88% of financially successful people read at least 30 mins per day.
If you want to learn more about personal finances or change the direction of your life when it comes to money, I highly recommend the five personal finance books listed below. These books make for great presents especially for younger people, to avoid making some of the same mistakes many people make with money.
These are the top five personal finance books that I recommend. I will add to the list as I read and come across more books.
The Best Personal Finance Books That Will Change the Way you Think About Money
1. The Millionaire Next Door
2. The Total Money Makeover
3. The Richest Man in Babylon
4. The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish
5. Your Money or Your Life: 9 Steps to Transforming Your Relationship with
Money and Achieving Financial Independence
This book talks about the seven common traits that are common among people that have amassed wealth.
• Live well below their means
• Efficiently use their time, energy, and money for wealth accumulation
• Value financial independence over showing social status
• They are not dependent on their parents for money
• Their children are self-sufficient
• Talented at pursuing market opportunities
• They choose the right occupation
The average millionaire is regular average people. They drive used cars, live down the street, and work at regular jobs. They believe in living below their means, having a budget, and investing well. If we do an honest review of our finances, we may find certain traits that we can adapt to improve our finances.
This book teaches about money management. It starts out with information on creating a budget and using the cash envelope system. It provides information on starting a saving fund, paying off a mortgage, saving for a rainy day, paying off your debt and retiring in comfort. There are a number of real-life examples that help encourage the reader to manage their own money. This is an excellent book if you want to become debt free and enjoy retirement.
Dave Ramsey ask this question, “Would you fire yourself if you managed the money for a company like you manage your personal money?”. This question will make anyone give serious thought to the way they handle their finance.
This book is set in ancient Babylon, the characters learn about financial successes and failures of ancient Babylon through short stories. This is one of the best books to learn about personal finance. The most common principles in the book are:
• Start thy purse to fattening (pay yourself first
• Control thy expenditures (live below your means)
• Make thy gold multiply (invest wisely)
• Guard thy treasures against loss (avoid bad investments)
• Make of thy dwelling a profitable investment (the home is the biggest expense)
• Ensure a future income (have a retirement plan)
• Increase thy ability to earn (invest in ourselves)
This is an inspirational book on personal achievement. It shows that hard work, a positive attitude, and self-discipline can make a difference in a person’s life. The book also teaches on the dangers of procrastination and the need to take advantage of opportunities.
This book is about a couple who earn about $50,000 a year, own two homes with no mortgages, put their children through college, and retire with over $1 million in savings.
There are two main concepts in the book:
• Pay yourself first
• Make it automatic
The “one-step” in his one-step plan is to “Make Your Financial Plan Automatic!”. There is no effort on your part to automate your savings. Automatically pay yourself first while still paying your bills.
The book also talks about the Latte Factor. This portion deals with how we sometimes waste our money and teaches that we can manage how we spend our money. It is amazing how little expenses add up over the course of a year. Imagine starting to invest in your 20s, and invest for over 30 years, this will result in significant savings over time.
Rich Dad Poor Dad by Robert Kiyosaki
This book talks about the author’s observation of the money habits of his poor father and that of his rich friend’s father. The book talks about how to manage your money and teaching your kids how to do the same. The book deals with how to manage your money and stop living paycheck to paycheck.
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence by Vicki Robin and Joe Dominguez
Your Money or Your Life differs from other books in that it teaches about finding your purpose in life and aligning your life and money to follow this purpose. Life is more than making money, saving, spending and paying off debt. The time and energy you place into completing these tasks are part of your life. Many people if not most, derive satisfaction from spending time with family and helping or volunteering in the community.
The underlying problem is that most people work to earn money not because they love what they do. Working at a job that you don’t like does not bring satisfaction; it normally leaves you empty. The whole purpose of the book is to change your relationship with money.
1. Make peace with your past
2. Figure out your real earnings and spending
3. Create monthly reports for yourself
4. Three questions that will supposedly transform your life
5. Keep a prominent graph of income and expenses
6. Lean to value your life energy by minimizing spending
7. Maximize your earnings
8. Watch for the crossover point
9. Managing your money
There are many more books that are available but these personal finance books are good to start. I want to encourage you to read or listen to these books.
Do you have a personal finance book that is not listed? I’d love to hear what you have read. I’d love to know what you think of the books listed above in the comments section.
Hi, I’m Ngozi, I work full time during the day, blog at night and in my free time. Join me as I write about saving money, side hustle, getting out of debt, and ways to enjoy the simple things in life.