Wish you learned how to manage your personal finances in high school, instead of trigonometry? So, do I.
Unfortunately, most of us didn’t learn how to create a budget or to create an emergency fund, until it was too late. Some of us learned from trial and error (or crash and burn).
No matter if you were busting budget spreadsheets from the time you got your first lemonade stand or learned on the fly, here are some of the best personal finance books you will want to add to your reading list.
Why Personal Finance Books
Being educated about finance is important to your overall life. How much money you make, how much money you keep, and your credit score will determine the neighborhood you live in. It will also determine if you’ll live a comfortable life for you and your family or struggle to make ends meet.
Making the right decisions about your money is easiest when you have the right education. Now, do you have to go to school and get your MBA? No. Most of what you need to live your best financial life can be found in books.
Since most of us were exposed to financial literacy in school, we’re often responsible for gaining our own knowledge.
If you’re looking to create a budget, save money, or make more money – here are a few of my favorite personal finance books you should definitely check out.
Other posts you may be interested in:
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- How to Earn a Degree Without Going Into Debt
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I’m the first to admit that I’m not the best when it comes to taking care of my finances. Yes, I have made some good decisions over the years such as earning a master’s degree and buying my house at the age of 30 as a single mom.
I’ve also made some foolish ones as well, such as buying a Volvo that had a bad transmission (and tires that made a scraping sound when I turned the wheel) or emptying my 401K to pay bills because I left my job without a plan.
Like many of you, no one taught me about credit and investing. Much of what I learned was discovered through trial and error. Good thing, I found a few books that I have read that show me how to be smarter about money.
Here’s a list of the personal finance books that have changed my life.
Rich Dad Poor Dad by Robert Kiyosaki
I first read Rich Dad Poor Dad when I was a freshman in college. I can’t remember if it was one of the books assigned to us by one of my professors or something I picked up on my own.
Most likely it was a book I picked up when I should’ve been reading a textbook, but that’s not the point. After reading this book, my view on money and entrepreneurship changed forever. I still have the same copy I purchased 20 years ago and I’ve read it several times since.
Kiyosaki writes about how he had two dads, his biological dad and a man he looked up to as a mentor. His father, a professor at a local college, was educated but broke. On the other hand, his other dad didn’t have a college degree or any formal education but was a rich businessman.
He goes on to say that he learned a lot about both men, but his rich dad taught him a lot about money and building wealth. This book showed me that being rich is a mindset and no matter if you want to be an entrepreneur or not, you will find nuggets in this book.
Best Personal Finance Books for Beginners
The Money Book for the Young, Fabulous & Broke by Suze Orman
I Will Teach You To Be Rich by Ramit Sethi
The Total Money Makeover by Dave Ramsey
One of the best finance gurus to follow is definitely Dave Ramsey. With a disdain for credit cards and car payments, Ramsey wrote one of my favorites, The Total Money Makeover.
If you’re looking for sound money advice from someone who is not only rich but who was broke, became rich, lost his money and regained his wealth again, then Dave Ramsey is your man.
For me, I have a hard time taking diet advice from someone who has never been fat. I feel the same way when it comes to money, it’s easy to talk about how easy it is to be rich if you’ve always been rich.
Other Books to Check Out…
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas Stanley
The Purposeful Millionaire: 52 Rules for Creating a Life of Wealth and Happiness Now by James R. Nowlin, J.D
Love Your Life Not Theirs: 7 Money Habits for Living the Life You Want
One of the ways we get ourselves in financial trouble is by trying to keep up with the Jones’. Rachel Cruz agrees and in her book Love Your Life Not Theirs: 7 Money Habits for Living the Life You Want is a manual on how to stop wanting what others have (but we can’t afford).
Sound advice from someone who grew up in a household where being financially responsible was taught (she’s Dave Ramsey’s daughter), Rachel breaks it down on how we can have great lives, without going into debt and without feeling like you’re missing out.
Love Your Life Not Theirs is one of the few personal finance books I ever pre-ordered simply because I was excited to read it. Rachel has a YouTube channel that has sound advice.
Check These Great Reads Out, Too
America’s Cheapest Family by Steve Economides
Retire Inspired by Chris Hogan
The 4-Hour Work Week by Tim Ferris
Some people have discounted Tim Ferris’ mantra that you can work as little as four hours a week and live a rich and successful life. I disagree, to a point. I believe it’s possible to work 4 hours a week, but you have to put the time in first.
It is possible to lay out on a beach somewhere and live off of passive income. However, most of us know that passive income isn’t quite passive, especially not in the beginning.
I like the 4-Hour Work Week because Ferris tells us that as long as we have an infrastructure and system in place, then it is possible to have a four hour workweek.
These systems including starting businesses in profitable niches with little overhead and automatic processes. He shows how he started working from home by asking his boss for the opportunity.
Best Personal Finance Books of All Time
Think and Grow Rich: The Landmark Bestseller – Now Revised and Updated for the 21st Century by Napoleon Hill
The Richest Man in Babylon by George S. Clason
Gold Diggers and Deadbeat Dads
I admit it, I was interested in Gold Diggers and Deadbeat Dads because of the title. Good thing the book met my expectation and I have kept this book in my bag to refer to when I need a reality check.
The author talks about how she and others were financially devastated by trusting those she loved with their money.
As a woman who has done financially better than most of those around me, I am always being hit up for a loan to get someone out of their own mess. When I should have been paying my bills, I was paying others.
Though I have never cosigned for a car or an apartment for a boyfriend or family member, I have given money when I shouldn’t have.
This book will show you the power of no and how it’s okay to help others on occasion, but not to risk your own financial health to save someone who doesn’t care about theirs.
You will either resonate with the stories in this book or get scared to death by them. Either way, this is a must-read for all women and one of my favorite life-changing personal finance books.
Also, Check Out these Personal Budget Books
Smart Women Finish Rich: 9 Steps to Achieving Financial Security and Funding Your Dreams by David Bach
Live Richer Challenge by Tiffany Budgetnista Aliche
Have you read any of these books on my list? If so, what did you think of them? Do you have any to add?
How to Earn a Degree Without Going Into Debt - Living Simply Fabulous
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