Along with exercising, eating healthy, and decluttering your life, saving money and sticking to a budget are two of the most popular personal goals. However, between paying endless bills and managing everyday expenses, finding the time to create a budget plan, saving for the future or investing, can be difficult. Adding to this, the world of finance, with its complicated jargon and lengthy calculations, can all feel a little overwhelming. While many personal finance books have been written on how to earn, save and spend money, it’s often difficult to track down the ones aligned to your goals. In a society burdened by debt and many people facing bankruptcy, there has never been a better time to gain some useful knowledge about finance.
So, whether you are starting out in your career or simply wish to expand your financial knowledge, here are the best personal finance books to help you develop constructive money habits.
The Total Money Makeover: A Proven Plan for Financial Fitness, by Dave Ramsey
This New York Times bestseller provides one of the most straightforward strategies for overhauling your bad money habits. Dave Ramsey’s seven-step plan includes paying off debts faster, creating a financial safety net, investing in a retirement fund, saving for children’s college expenses, and more. He effectively shows how people can free themselves of debt and increase their wealth using their current income. This book can very well be your entry point into conscious money management.
Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence, by Vicki Robin
One of the most compelling personal finance books, Your Money or Your Life will help you quit your habit of spending mindlessly. Robin prompts you to ponder deeply on your core values and understand what is important to you, urging you to spend your money only on what you really need and what brings you joy. Overall, this book teaches you how your unconscious financial decisions can impact your life satisfaction and how you can reclaim your happiness by spending wisely.
You Need a Budget: The Proven System for Breaking the Paycheck-to-Paycheck Cycle, Getting Out of Debt, and Living the Life You Want, by Jesse Mecham
Jesse Mecham’s proven four-step system will help you transform your personal finance into a valuable asset. Mecham states that you should be intentional about how you want to spend your money. He urges readers to focus on widening the gap between the moment they earn their pay cheque and the moment they need to spend it. When your money is at least a month old, you can finally break free from the pay cheque to pay cheque cycle for good. These and other valuable tips mentioned in this personal finance book will help you adjust your money habits, eliminate stress and build the life you want to live.
Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That The Poor And Middle Class Do Not!, by Robert T Kiyosaki
Having sold over 32 million copies in more than 51 languages across 109 countries, Rich Dad Poor Dad is written in the style of a set of parables, based upon the distinction between author Robert T Kiyosaki’s father’s (Poor Dad) definition of success and finance, and his friend’s father’s (Rich Dad) path towards success and financial aptitude. The author shatters the myth that a high income is an absolute necessity to become rich. This a great book for youngsters who have just started their careers and wish to get good returns out of their savings.
Broke Millennial: Stop Scraping By and Get Your Financial Life Together, by Erin Lowry
Cash-strapped millennials, living a fast-paced life, can easily get overwhelmed by the complicated terminologies used in the world of finance. But with this clever guidebook, youngsters can start taking responsibility for their money and their life. Financial expert Erin Lowry explains tricky money matters such as understanding your relationship with money, managing student loans, making wise spending choices in a casual and relatable way. Infused with fun little stories and anecdotes, Broke Millennial is an essential read for every millennial who wants to feel more in control of their finances.
The One-Page Financial Plan: A Simple Way To Be Smart About Your Money, by Carl Richards
In this book, leading financial advisor and New York Times columnist Carl Richards teaches you how to prioritise what you really want from your life and how you can get there. He begins by asking one over-arching question that would guide the rest of the advice: Why is money important to you? He says, “Recognising what really matters to you is the first step toward making financial decisions that are in sync with your values.” This personal finance book offers sound advice on creating a simple yet effective financial plan in an easy-to-understand language.
The Psychology of Money: Timeless lessons on wealth, greed, and happiness, by Morgan Housel
In less than 200 pages, Morgan Housel explains the significant but often overlooked role human emotions and behaviour play in money matters. Highlighting the difference between getting wealthy and staying wealthy, the author stresses the value of learning how to save money. As per Housel, “Preserving wealth requires humility and the fear that what you have made can be taken away from you just as fast.” The concepts in this personal finance book are simple, time-tested, and explained with clear examples of how our mind treats money, and how that, in turn, influences our spending and investment decisions.