Personal Finance Books - The Top 5 You Need To Read Now

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“Think before you speak. Read before you think.”
Fran Lebowitz

WHY BOOKS?

The quote above is on a mug I purchased at the New York Public Library. To be completely honest (and maybe I’m just culturally ignorant) I didn’t know who Fran Lebowitz was. I do know that the quote is an excellent life rule, especially regarding personal finance books.

I know, I know… anything you want to learn, you can learn for free online. Why bother with a published personal finance book that was outdated before the first copy hit the shelves?

Because at the end of the day, nothing beats a well-written, thoughtfully organized book in terms of presenting a congruent plan of action grounded in a fleshed out philosophy on a given subject.

I’m committed to sharing every tip, strategy, and suggestion I’ve used or can find to help all of us achieve our goals. But my journey started with my nose in a Kindle.

At some point, if you really want to succeed, you’ve got to have more than suggestions. You’ve got to have a plan. I think you can piece one together pretty easily by reading the personal finance books on this list.

Personal Finance Book #1: The Total Money Makeover – Dave Ramsey

Dave Ramsey has been in the game for a long time, teaching the benefits of debt free living. He’s written a number of personal finance books, but his most comprehensive by far (in my opinion) is “The Total Money Makeover.”

Dave outlines what he terms the “7 Baby Steps” you should take in personal finance. He explains EXACTLY how he would prefer you to navigate them.

Dave addresses just about every topic a typical individual would come up against in personal finance. He does an excellent job presenting this information in language we can all understand.

If you are looking for a complete philosophy of personal finance, with an actionable plan you can start today, that addresses ALL sides of the issues (saving, investing, insurance, budgeting, etc.) then this is the book for you.

In fact, everyone, just go read this book.

Personal Finance Book #2: The Millionaire Next Door – Thomas Stanley

In the mid 90s, Thomas Stanley pulled back the curtain on America’s wealthier individuals in his personal finance book. He made a startling discovery – they looked a lot like you and me (yeah, I’m not there yet).

In “The Millionaire Next Door,” Stanley explores which traits and characteristics appear in the lifestyles of most of these successful individuals. He offers the hope that you too might someday achieve the title of millionaire regardless of your current situation.

While even the current edition feels a little dated, this is a respected addition to the canon of personal finance books. It will leave you feeling empowered and ready to take action.

Personal Finance Book #3: Retire Inspired – Chris Hogan

If you read these books in the order I’m suggesting, by the time you get to Chris Hogan’s “Retire Inspired” you’ll have figured out that the surest path to wealth is utilizing your income over the long term.

In his personal finance book, Chris encourages you to dream about the future you want. He then gives you the tools to make it a reality.

All aspects of wealth building and retirement planning (Roth IRAs, 401ks, 403bs, Stocks, Mutual Funds, etc.) are covered in depth. But, they are covered in language that is easy to understand.

Make no mistake, you need to have a retirement plan in place. This book will help you turn your retirement dreams into retirement realities.

Personal Finance Book #4: Love Your Life, Not Theirs – Rachel Cruze

If your income, regardless of how large or small it may be, is your path to wealth, then we can safely assume outgo is the biggest hurdle to overcome on your journey.

In her personal finance book, Rachel Cruze takes a look at why we have such a compulsion to spend every dollar we make. She finds that our culture of comparison is likely the heart of the issue.

“Love Your Life, Not Theirs” offers exactly what you would expect from the title. It’s a guide to developing habits to help you be content pursuing YOUR financial goals, NOT someone else’s.

Considering the importance of directing your income at the things that really matter, both in the short term and the long term, these are habits you cannot afford to miss.

Personal Finance Book #5: Rich Dad, Poor Dad – Robert Kiyosaki

The message of the first four personal finance books on this list is powerfully simple. The path presented is almost certainly going to lead you to a future of wealth…

HOWEVER, there are two sides to every issue, and if you don’t fully understand the issue from ALL angles, you aren’t really making any decisions. You’re just doing what you’re told.

So in the spirit of learning about ALL the ways you can set and achieve financial goals, I think it’s incredibly important that anyone wanting to wrap their minds around personal finance read “Rich Dad, Poor Dad.”

In his book, Kiyosaki explores the difference in mindsets between the rich and the poor.

Over the course of his exploration, Kiyosaki provides examples of ways the rich might approach situations and opportunities differently than the poor.

Ultimately, Kiyosaki advocates for the concept of good debt, or leveraging other people’s money to purchase moneymaking assets. I do NOT advocate for this approach. Read more about that HERE.

(To be transparent, I should say here that I HAVE utilized some of the ideas Kiyosaki advocates for in the past, but I do not use debt as a means to achieve personal financial goals any more for the simple fact that I don’t want the risk that inevitably comes with it.)

While Kiyosaki’s philosophy stands in contrast to the other title’s on this list, “Rich Dad, Poor Dad” is a must read in the world of personal finance books for anyone wishing to have a well rounded knowledge of the subject.

My Thoughts On “Good” Debt

In Conclusion…

…go read these books.

And remember, regardless of your money goals, you can “Bank on a Budget” to get you from where you are to where you want to be!

At the end of the day, nothing beats a well-written, thoughtfully organized book in terms of presenting a congruent plan of action grounded in a fleshed out philosophy on a given subject.

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Alex

Hello, my name is Alex! I'm a public school teacher who has achieved some big financial goals just by getting control of my money using some simple strategies like using a monthly budget. Now I'd like to share what I've learned with you. Welcome to "Bank on a Budget!"