Personal finance books are underrated, especially in popular culture, where people continuously have short attention spans and find reading excruciating. However, reading individual finance books provides endless insight into money management. What’s more, they assist you with setting and reaching your money goals.
Personal finance books boost your financial understanding and expose you to rare knowledge that is not common sense. Therefore, if you are used to watching much television, books provide much more value, even though you can learn some financial lessons from your favorite TV shows.
Plus, you could get carried away by the level of entertainment in the show and miss out on the valuable lessons you should pick. On the contrary, personal finance books deliver value-packed utility in real-time because they keep you more mentally engaged and open to direct learning. So, this blog post provides five personal finance books you should read now to get your finances back on track.
What are Personal Finance Books?
Personal finance books are printed or online material that discusses personal financial management. Whether it involves earning, saving, planning, budgeting etc., it emphasizes knowledge about making money, money habits, protecting your financial assets, and teaches steps toward creating more money.
Such books are effective methods to boost your financial intelligence as making money is never always enough. So whether you want to head to your local library, book store or purchase on Amazon, here are five personal finance books to read now!
Five personal finance books worth reading now
Rich Dad Poor Dad
Rich Dad Poor Dad is Robert Kiyosaki’s bestselling classic and popular among the collection of personal finance books. In the book, Robert draws a comparative analysis between the lessons he learned from his Dad and his friend’s Dad to highlight how financial decisions and mindset can contribute to better financial wellness.
A striking lesson emphasizes how your endless employee W-2 forms may not necessarily be the best for you. Through the financial quadrant analysis, he encourages readers to see ways to make money work for you by spending money more on assets than liabilities.
I will teach you to be rich.
This financial blockbuster by Ramit Sethi made the New York times and wall street journal. The book emphasizes lessons for spenders, encouraging readers that you can spend money without feeling guilty provided you invest and allocate appropriately. The overall idea in the book discusses how to avoid common money drawbacks and build monthly savings out of your monthly paystubs or 1099 if you are an independent contractor.
Your money or your life
You probably did not think that this famous robbery statement would make the title of a book. Believe it or not, Vicki Robin’s bestseller outlines nine decisive steps to change your relationship with money in an easy-to-read style. The author utilizes a mindfulness strategy to highlight all five branches of personal finance to help readers solve major financial problems. Whether you need to get out of debt, invest, or make wise spending, your money or your life covers you.
Why didn’t they teach me this in school?
This book by Carl Siegel, a retired business executive, presents 99 principles and eight money lessons most people wish they had learned earlier. The book contains the author’s first-hand money lessons and experiences expressed in an easy-to-read style. The book’s content speaks to graduates and those seeking a fresh start in their financial journey. Why didn’t they teach me this in school is an excellent personal companion for readers passionate about finance.
Think and grow rich
This major classic by Napoleon Hill offers honest advice to readers about the need to adopt a positive money mindset. The bestseller encourages readers to use the powers of their minds to attract wealth and create a life of financial freedom.
Financial concepts that make up most personal finance books
There is more to making money than keeping a job or running a small business. As a result, most personal finance books touch on the five areas of personal finance. While some might combine discussions about two financial areas, others might pick one unique aspect as a stand-alone topic.
Here are the five personal finance areas that influence most books in the niche:
Whether you run a business or work as an employee or independent contractor, your source of cash inflow is your income. Your income constitutes the beginning of your financial planning. As a result, some books discuss income management or increment. Here are some familiar income sources:
- Employee Paystubs
- Hourly wages
- Commissions, etc.
Your income sources provide the initial provision for further financial management and a decision like savings or investment.
After generating income, you should take active steps to hold on to it by seeking ways to protect it. In most cases, financial protection is using your money to guard against unforeseen circumstances. Here are examples of standard products you can acquire to get some protection:
- Life insurance
- Health insurance
- Life insurance
- Real estate, etc.
Personal finance books in this niche usually provide professional advice to readers about critical life issues, including some money rules that no longer hold.
Spending involves all expenses you incur that do not bring further financial returns. It mainly involves your liabilities. You can either run costs in cash or with your credit cards. Unfortunately, for the vast majority of the human population, more of their income is channelled towards heavy spending.
Here are some common avenues for spending:
- Internal Mobility
- Credit card payments
- Entertainment, etc.
Your expenses, if not controlled, can ruin your ability to grow your finances through investment and a savings culture.
Savings refer to the amount of money you can keep after necessary expenses. To boost the ability of your savings, you should only spend on your needs and not your wants. Here are some valid forms of savings:
- Cash savings
- Bank sayings
- Money market securities, etc.
Proper sayings management is critical for financial success. However, your savings add little to your income because they do not yield. As a result, they are a form of passive income.
When you buy assets that you expect to yield returns after some time, you have invested. However, not every asset or investment plan yields returns. So investing carries considerable risk. Here are some common forms of investment:
- Mutual funds
- Real estate
- Private companies, etc.
Since investment is the most complex personal finance niche, only expert personal finance books discuss them professionally—Usually investment veterans.
Some Personal finance books often reflect the significant financial challenges of the time the author wrote the book. However, like the classics in the niche, some personal finance books never get old. Hopefully, you find the inspiration to take control of your financial IQ by picking some among our list.
FAQS: What are examples of personal finance topics?
What are examples of personal finance topics?
Examples of personal finance topics include but are not limited to: Budgeting, chequebook balancing, retirement savings, tax planning and filing, insurance purchase, investments, etc. several authors of personal finance books discuss most topics in this niche.
Can I learn finance on my own?
Yes, you can learn finance on your own. There are several sources and platforms for you to pursue a self-education path in finance. For example, there are online courses, classes, books, etc., from where you can teach yourself about finance.
What are the benefits of personal finance books?
Personal finance books not only enlighten you about how to manage your finances but how to avoid common financial pitfalls. Such books broaden your horizon and show you a sneak peek into the lives and experiences of several financial experts to sharpen you up. For example, you can learn how to make wiser financial decisions, investments, etc.