Very few of us can admit that we paid any attention to our money in our early 2os. I always saw budgeting way too complex and restrictive for my coolness. My perception quickly changed in my late 20s when I started having kids and a household to manage. As my life changed, I developed a love for personal development and financial literacy. There are many financial books out there to help develop financial literacy.
The very first book that opened my eyes to who I can become was The Compound Effect by Darren Hardy. This book taught me that the compound effect is the strategy of reaping huge rewards from small, seemingly insignificant actions. You cannot improve something until you measure it. In other words: small choices + consistency + time = significant results. This strategy I was able to apply to all aspects of my life.
Why Read Financial Books?
Financial literacy is knowing how to manage your money and reading books is one of ways to achieve financial freedom. Let face it, for many of us when it comes to managing money, many of us are self-taught.
Below are some of my favorite books related to personal finance that has helped me. I have no doubt they can do the same for you.
You won’t find many personal finance books targeting a particular demographic, but Broke Millennial by Erin Lowry target audience is the millennial generation. As a millennial myself, I felt this would be the perfect book to start off with. Outside of the typical millennial stereotypes, the book offers great lessons and insights applicable to all age groups.
I was impressed with the level of information I could pull from this book to get my financial life together. The author focuses on ways to simplify money, getting out of your financial funk, and also includes personal stories of her own to help you become a money master.
I Will Teach You to be Rich
Ramit Sethi’s emphasis in this book is that being rich is not about not spending money at all, it is more about investments and proper allocation. The book highlights a six-week program that automates saving and jump-starts investing and delves into topics such as banking, budgeting and entrepreneurship along the way.
A big takeaway from I Will Teach You to be Rich is how Sethi’s look at riches less in terms of how much money you have, but how that money can help you live a rich and fulfilling life.
The Millionaire Next Door
Have you ever come across someone who never appeared to be wealthy? They drive a simple car, and never wear flashy clothes, but at some point, you find out they are financially free or have a ridiculous amount of money saved?
That’s what The Millionaire Next Door explores, the people you least expect to be millionaires
This book shares facts on how America’s wealthy become millionaires by being frugal and accumulating wealth instead of showing it. Hence the title you’d be surprised to identify most millionaires, who could be neighbors.
Your Money or Your Life
This book is about changing your relationship to money so that it serves you, rather than the other way around. There are nine steps outlined in the book that teaches you to actually earn for your time, how to make the most of your money, and ultimately achieve financial independence.
Your Money or Your Life guides readers on how to pay off debt and prioritize savings, rearrange priorities, solving inner encounters between values and lifestyle, and much more.
Why Didn’t They Teach Me This in School?
The title of this book is a question I ask myself all the time! Why Didn’t They Teach Me This in School. Cary Siegel, a retired business executive, divides the book into 99 principles and eight money lessons that you should have learned in high school or college but didn’t.
Siegel initially wrote this book for his five children when he realized they didn’t learn important personal finance principles before entering the real world, but it grew into a well-reviewed read full of money lessons. This easy-to-read book is ideal for new grads or anyone looking to start off their personal finance journey on the right foot.
Above are just a few of my favorite books that can teach you with the basics on personal finance like why saving is important, how to manage and pay off debt, and more. You won’t get rich by just reading, but you’ll become smarter and more confident with how you handle your money.
What are some of your favorite books on personal finances?