The Internet is a great source of information about personal finance.
But if you want to delve deeper into the worldview of money or financial philosophy, the good old book is still no substitute for anything. That’s why even successful bloggers and TV presenters also publish books – this gives them the opportunity to comprehensively and in detail state their worldview.
I’ve had an unhealthy obsession with finance and self-help books for most of my adult life, and have struggled through my share of mediocre writing. Unfortunately, just because you’re a financial expert doesn’t make you a good writer, and just because you’re a good writer doesn’t mean you’re a financial expert.
But when you find a book with a well-articulated and thought-provoking perspective, it can change your life forever. Here are some of my favorite personal finance books.
In this book, Tiffany Alice does not suggest any level of financial savvy. It starts from the very beginning and goes from there. Manage Your Money Well teaches you simple techniques to manage your finances in a way that works for you.
This will help you lay the foundation for good financial habits without assuming any previous financial knowledge.
This book provides the author’s 10-step guide to “financial integrity.” She describes financial integrity as all aspects of your life working together for the greatest good.
Grab ‘Good with the money“ here.
Dave Ramsey has been a personal finance legend for decades, starting with the 1997 publication of his book The Financial World.
If getting out of debt is your number one goal, then you should start with Total Money Transformation. He gives solid step by step instructions to pay off your debt. Dave Ramsey coined the term “debt snowball” and this method is widely considered to be the most efficient way to pay off debt.
Grab “Total Money Makeover” here.
The Easy Way to Wealth is a book about the incredible power of index funds. Which sounds as boring as it gets, but is surprisingly easy to read.
JL Collins explains how index funds work and why they are a great place to start investing in the stock market.
If you are afraid to invest in the stock market, this book will dispel your fears. You’ll end this quick and easy read with a solid understanding of how index funds work.
Grab The Easy Way to Wealth here.
Author John Bogle is the founder of The Vanguard Group, an investment company known for its index funds.
He believed that index funds that track a particular index, such as the S&P 500, provide higher returns than individual stocks.
This book will give you a comprehensive education in stock investing, but keep in mind that it is not easy to read. However, it is pretty much required reading for anyone serious about learning to invest.
Besides, who better to learn from than the founder of one of the largest investment companies in the world?
Grab The Little Book of Common Sense Investing“ here.
This book takes the adage “pay yourself first” to a whole new level. David encourages you to put money on autopilot so you can make sure you’re saving what you need without relying on willpower or complex budgeting systems.
If you are looking for a plan to manage your money with minimal effort while still achieving your goals, this is worth reading.
Grab “Automatic Millionaire” here.
In the same vein as David Bach, Ramit is a proponent of installing automatic systems for your money so you don’t get hung up on the little details.
He also encourages the idea of making more money rather than cutting spending as a way to create wealth. He despises extreme frugality and instead encourages you to spend generously on what is important to you and ruthlessly cut back on what is not.
Grab “I’ll Teach You to Be Rich” here.
“Your money or your life” is a rallying point for the FIRE community (financial independence, early retirement).
This book will challenge your relationship with money and encourage you to rethink your current lifestyle.
Some critics disagree with the investment advice in this book, so read this book if you want to change the way you think about money and consumer culture and get investment advice from another book on this list.
Grab Your Money or Your Life here.
Known for his financial scribbles in The New York Times, columnist and financial planner Carl Richards demystifies the financial planning process in his second book.
He says that a great financial plan has nothing to do with what the markets do and everything to do with what matters most to you. Pick up this book if you want to create a simple value-based financial plan.
Grab the “One Page Financial Plan” here.
Best book for over 20s: The Millionaire Next Door by Thomas Stanley and William D. Danko.
Stanley and Danko analyzed the behavior and habits of millionaires to show how they save, spend and invest money.
The conclusions were unexpected.
It turns out that people with a net worth of $1 million or more tend to live in middle-class neighborhoods rather than gated communities. This is a fascinating look at how real people create and maintain wealth.
Grab The Millionaire Next Door here.
One of the original personal finance books, Think and Grow Rich, was published in 1937, after the Great Depression. The lessons in the book are based on interviews with the most successful people of the time, including Henry Ford, John D. Rockefeller, and Charles M. Schwab.
Hill takes their lessons and refines them into bite-sized formulas that the average layman can follow. It is not necessarily aimed solely at making someone financially successful, but successful in all aspects of life. He wants you to chase your wildest dreams, no matter how crazy they sound.
Grab Think and Grow Rich here.
Summary
Nothing beats an old-fashioned book when it comes to learning about a specific topic, including personal finance. These 10 books will get you started on your personal finance journey.
