Best Personal Finance Books
When it comes to how to manage money, the first thing that hit me is my poor money-saving skills. Like most of you, I too want to master finance and live a financially stable life. While some people manage their money like real experts, others like me…not so much!
The question now boils down to how to get a grip on your finances and make your money grow? It’s simple, educate yourself, and there’s no better way of doing it than losing yourself in tons of finance books. Going back to some old fashioned books can help you kick start your journey to manage your personal finance.
Sure, the internet is an excellent source for an enormous amount of information. But when you want to indulge in comprehensive learning, nothing can replace a good old book. I’ve had an unhealthy obsession with classics for most of my adult life. But off late, it has shifted to finance and self-help books.
With thousands of books on how to earn, spend, and save money, choosing the best personal finance books for beginners from the lot is no cakewalk. Luckily, thanks to my recent obsession with self-help books, I’ve read quite a lot of them and can give you some easy-to-read and useful recommendations.
Here’s a list of the best personal finance books for beginners that will help you understand the basics of financing and the best ways to cut expenses and save money.
Smart Women Finish Rich, by David Bach
David Bach’s “Smart Women Finish Last” is one of the best books on developing good money habits. When I realised I had to take matters into my own hands and fix my money situation, this was the first book I turned to. It has helped me to understand how simple cost cuts like cutting out a cup of coffee per day could lead to a good saving.
While the title aims at women, the book is useful for anyone looking to figure out their financial situation. The book successfully explains how small investments can shape up to something big and how to stop living your life paycheck to paycheck.
Psych Yourself Rich, by Farnoosh Torabi
“Psych Yourself Rich” teach you the relationship between you and money. The author has beautifully portrayed how we let our emotions influence our financial decisions. In this book, you precisely learn the concept of behavioral finance and the tactics to identify your weaknesses and make the most of your strengths to structure and maintain your finances without much stress.
I Will Teach You To Be Rich, by Ramit Sethi
When I first picked out this book, the tagline “Just a 6-week program that works” sounded more like a weight loss regime than a personal finance book. Yet, by the end of the book, it gave me a better understanding of using credit cards and managing my bank account. Sethi takes a steady approach, one week after another, to help readers develop a stable financial plan without any guilt or excuse.
Why Didn’t They Teach Me This in School? By Cary Siegel
The book came into inception when Cary realised how little his children learnt about managing money at school. Irrespective of the age factor, it’s never too late to master Cary’s 99 principles. All 99 principles are abridged in eight lessons and hits straight at the bull’s eye – teaching how to manage your money and not the other way around.
Rich Das Poor Dad, by Robert T. Kiyosaki
“Rich Dad Poor Dad”is a memoir and still one of the bestselling personal finance books ever. The writer takes you on a journey to his childhood days, where he draws a comparison between his poor father and his wealthy friend’s father.
With contrast, Kiyosaki throws light on to manage the money you have and help your kids do the same. The updated edition of the book is a fun and insightful read as it compares life 20 years ago against the present.
The Total Money Makeover, by Dave Ramsey
As the saying goes, when Dave Ramsey talks, people sit up and listen. Along with a successful radio program, The Dave Ramsey Show, Ramsey has written over five New York Times bestsellers. “The Total Money Makeover” provides a foundation for solid budget-busters like marriage and hefty college fees of one’s children.
Why I like Ramsey’s books, you ask? His books are not about quick guide to getting rich. It’s more about learning how to pay off debts and secure a comfortable retired life.
The Automatic Millionaire, by David Bach
Are you looking for a book that gets straight to the point without any superfluous elements? David Bach’s “The Automatic Millionaire” would be the ideal pick.
When you start reading the book, it feels more of a success story of a couple who is well off with two homes and a fair amount of retirement savings. But as you get deeper, the writer explains one-step plan to achieve what the couple has without exorbitant income or strict budgeting.
Broke Millennial, by Erin Lowry
“Broke Millennial” is a hot favourite among the millennial for its simple and straightforward language. Erin’s Broke Millennial is relatable to most of the young adults who have too much on the plate – from living with parents, paying off a student loan, to dealing with changing relationships and finances.
It is an excellent pick for young adults who want to gain insight into a range of factors, from checking the credit score to making a long-term investment.
The Money Manual, by Tonya B. Rapley
“The Money Manual”is a guide that takes us to the basics of managing money. The book is both relatable and engaging with excellent money lessons for everyone irrespective of the amount on the paycheck. It is interactive and includes question sections.
Right from the very beginning, Tonya starts with a simple money check-in and gives actionable advice to help you understand the current position and where you want to see yourself.
Nudge: Improving Decisions About Health, Wealth, and Happiness, by Richard H. Thaler & Cass R. Sunstein
When you are planning to change something, it sounds pretty straightforward. The actual struggle begins when a host of emotional and psychological factors get in the way. The book delves into how we tend to make decisions and how we can make decisions by understanding the power of reasoning.
With the book, the writers highlight the behavioral and emotional brassiness all of us have. It also brilliantly showcases some real-world examples of how we can overcome the brassiness to make better financial decisions.
11. Your Money or Your Life, by Vicki Robin
In this book, the writer brilliantly captures what a person thinks about money and his/her emotional connection with it. The book aims to transform a person’s relationship with money and gives a 9-step approach to gaining financial independence. Furthermore, the book also brings out a sense of satisfaction and fulfillment that an individual gets from family and community. All in all, the book emphasis on how prudent saving can make you much happier.
When it comes to the list of books on personal finances for beginners, the list is inexhaustible. However, the above mentioned list provides a good foundation for beginners when it comes to budgeting and investing. If you finally want to chalk out a survival plan related to your finances, these books would be a perfect start for you. So get hold of the best book at appealed you and share with me what you learnt from the book.
This is a great help! Good thing I’ve read this. Thanks for sharing!