Best Personal Finance Books – Our Top 8 Best Books (2022)

Mastering your finances will allow you to reach financial freedom by budgeting, investing, and paying off looming debt. Without personal finance skills, you’ll spend your life living paycheck to paycheck to pay your bills, missing out on doing the things you love. Without financial freedom, you’ll live out an unfulfilling life of never-ending work.

You can always use a personal finance course to help learn how to manage your finances. Another one of the best ways to master your finances, though, is to read about how the rich have done it and how you can do it.

Best Personal Finance Books – Our Top 8 Best Books (1)

Best Personal Finance Books

Personal finance books teach you how to budget within your income, keep more of your hard-earned cash, and alter your mindset about money to earn it in abundance. Whether you’re looking to start investing, recession-proof your finances, pay off debt, or start a retirement fund, personal finance books will teach you how to do so. Below are the top 8 books that guide you through the process of financial independence. After all, anyone and everyone benefits from maximizing their earnings.

1. I Will Teach You to Be Rich by Ramit Sethi

Best Personal Finance Books – Our Top 8 Best Books (2)

Author Ramit Sethi is the creator of both blog and book: I Will Teach You to Be Rich. Sethi is one of the most well-known finance gurus of the 21st century and a New York Times best-seller.

This book helps you earn more, save more, and live an affluent lifestyle. According to Spend Me Not, 58% of Americans have less than $1,000 in their savings. Thankfully, Sethi guides you in creating income streams that allow you to make money on autopilot and introduces you to the joy of being able to spend guilt-free on the things you enjoy. In this step-by-step process toward taking control of your finances, Sethi emphasizes that since anybody can become rich, all readers can take these actionable steps.

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Ultimately, I Will Teach You to Be Rich will teach you how to take responsibility for your finances, eliminate your harmful habits, and take control of your money.

2. The Automatic Millionaire by David Bach

Best Personal Finance Books – Our Top 8 Best Books (3)

In Bach’s 4th book about the secrets of acquiring wealth, he begins with a compelling story about a low-income American couple that goes from less than $55,000 per year to over $1 million in savings, debt-free. He dives deep into the reasons that you cannot get rich with only a budget, and the importance of setting up an automatic plan to pay for your lifestyle. He explains how this automatic payment plan sets you up for the future, pays for the present, and puts you on the path of financial independence.

Later, Bach analyzes the mindset of getting rich, and why willpower in regards to spending will always have more impact than creating a flimsy budget. His main claim: being interested in money is more important than making money.

All in all, The Automatic Millionaire is the go-to book for securing your financial future. David Bach gives you all the tools you need, from websites to phone numbers, to create your effective financial system.

3. The Total Money Makeover by Dave Ramsey

Best Personal Finance Books – Our Top 8 Best Books (4)

Dave Ramsey’s all-time bestselling book explains how to deal with a mountain of debt and enact a proven plan for financial fitness. The first step? Stop normalizing debt and take control of your finances. Since 2013, the average credit card debt among Americans has increased by 18.5%, according to The Federal Reserve Bank of New York.

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While debt increases, Ramsey will teach you how you can eliminate debt forever by implementing small habits. He even includes a 7-step plan on building your financial future and believing that you deserve financial freedom.

He debunks the myths about money and debt in our modern society and explains why they’ve been holding us back from becoming rich. He’ll teach you how to set up an emergency fund, invest for your retirement, and take control of debt to reach true financial independence.

4. The Intelligent Investor by Benjamin Graham

Best Personal Finance Books – Our Top 8 Best Books (5)

The Intelligent Investor is the #1 book for value investing. Warren Buffet said it’s the most important book ever written about investing, and that the strategies remain applicable today. In this, Benjamin Graham speaks about the importance of investing in personal finances.

He teaches the reader how to analyze long-term evolution and management principles of a company before investing, and proves what many had previously believed to be false in regards to investing. For instance, he claimed that investment returns were not based on intelligence or luck, but by how much you bought a company relative to its actual value.

Overall, many experts believe that this is the only book you’ll ever need to read about investing, and while it goes deep into multiple helpful strategies, it’s also an excellent place for beginners to learn about how to invest. It will allow you to take control of your finances, and only invest when you believe it is a good time.

5. Rich Dad Poor Dad by Robert Kiyosaki

Best Personal Finance Books – Our Top 8 Best Books (6)
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Robert Kiyosaki’s definition of wealth: how long can you survive on your remaining savings? Robert is a motivational speaker and financial commentator with a net worth of about $80 million. He was not raised into wealth; rather, he paved the path to wealth on his own.

In Rich Dad Poor Dad, Kiyosaki refers to his dad as the poor dad. He claims that his dad was a very hard worker, but didn’t know how to teach him to get rich, so he told him to secure a job and study hard. His friend, Mike’s dad, was the rich dad, who would mentor both him and his friend about acquiring wealth.

This book delves into the ways that the rich keep getting richer. Kiyosaki explains that the primary cause of financial struggle is not knowing the difference between assets and liabilities. Therefore, many acquire assets, thinking that they are liabilities. On the other hand, the rich have assets that generate more than enough to cover their expenses. Later, he explains how to buy assets that give you passive income to earn money without trading in your time.

He’ll teach you how to invest while managing your risk, how to minimize liabilities, and how to avoid debt along the way. With this book, you’ll learn how to use your logic over emotion when spending, and prevent the lethal combination of fear and greed that keeps the poor in a cycle of paying bills and continuously working.

6. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley

Best Personal Finance Books – Our Top 8 Best Books (7)

The Millionaire Next Door is a fitting title because this book explains the simple spending and saving habits of the rich that most ignore. Stanley explains how these habits lead to more cash in the bank and how you can implement them into your own life. He also explains the effectiveness of good money habits and teaches you how to avoid critical mistakes on your way to financial independence.

This book is not only action-oriented but also thought-oriented, as it explains how millionaires think about money differently. Further, Stanley debunks the myths about the rich. While rich people appear to live the most extravagant lifestyles and spend the most, it’s doing the opposite that got them to be rich in the first place.

(Video) 8 Best Personal Finance Books | presented by Oliver Palallos

After reading this book, you’ll be determined to manage your finances, budget wisely, and invest in things you know. Financial freedom is more important than a wealthy status, and a healthy bank account is key to a healthy life.

7. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner

Best Personal Finance Books – Our Top 8 Best Books (8)

Get a Financial Life is the 4th edition of the New York Times best-seller and guide for younger adults in a world where personal finance is of growing importance. Now more than ever, people in their 20s and 30s require financial guidance since the modern-day education system lacks such instruction. According to a study done by The National Endowment for Financial Education, only 24% of millennials possess basic financial literacy. Thanks to Kobliner, you now have the perfect book to read right out of high school and college to set you up for financial success.

This book covers it all: from choosing the right bank and insurance to making diverse investments, you’ll be able to plan for specific future financial goals and earn a steady income along the way.

8. The Simple Path to Wealth by J L Collins

Best Personal Finance Books – Our Top 8 Best Books (9)

This encouraging book is the savior for widespread misinformation about money management and investing. Anyone who knows that money is essential would rather spend time with friends and family, traveling, or living out their passion. The Simple Path shows the reader that investing doesn’t have to be complicated, and goes into the many ways that the average person can invest at any age. It includes tips about how to control spending, how to save up, how to manage debt, and how to invest wisely for long-term financial success.

Final Thoughts: Best Personal Finance Books

When it comes to personal finance, there is no target audience, anyone and everyone will benefit from money management skills. By conquering your finances, you’ll be able to live without having to worry about paying off debt or working as much as you can.

(Video) Top 8 Personal Finance Books That Changed My Life

Reading up about personal finance with one of these best personal finance books is a valuable investment of time, and will pay off greatly in the long-term.

Article Contents

  • Best Personal Finance Books
    • 1. I Will Teach You to Be Rich by Ramit Sethi
    • 2. The Automatic Millionaire by David Bach
    • 3. The Total Money Makeover by Dave Ramsey
    • 4. The Intelligent Investor by Benjamin Graham
    • 5. Rich Dad Poor Dad by Robert Kiyosaki
    • 6. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley
    • 7. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner
    • 8. The Simple Path to Wealth by J L Collins
  • Final Thoughts: Best Personal Finance Books

FAQs

What book is better than Rich Dad Poor Dad? ›

The Psychology of Money By Morgan Housel.

What are the 6 personal finance topics? ›

Personal finance is a term that covers managing your money as well as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, and retirement, tax, and estate planning.

What are the 5 most important aspects of personal finance? ›

We're discussing the five categories that attribute to personal finance, which are income, spending, savings, investing, and protection. These are critical to shaping your personal financial planning. Income is money received, especially on a regular basis, for work or through investments.

Is Rich Dad Poor Dad worth reading? ›

Rich Dad Poor Dad isn't a well written book. In fact it's very repetitive and most people will have the core concepts down after reading less than half the pages on offer. Once you feel like you've got to grips with the message don't feel like you have to read on.

Which rich dad books are best? ›

Robert Kiyosaki

Why do people want to be rich? ›

Why We Want You to Be Rich: Two Men, One Message is a non-fiction book about personal finance, co-authored by Donald Trump and Robert Kiyosaki. The book was first published in hardcover format in 2006.
...
Why We Want You to Be Rich.
Book cover
AuthorsDonald Trump Robert Kiyosaki
Media typePrint (Hardcover)
Pages345
ISBN978-1933914022
10 more rows

What are the four 4 pillars of personal finance? ›

Regardless of income or wealth, number of investments, or amount of credit card debt, everyone's financial state fits into a common, fundamental framework, that we call the Four Pillars of Personal Finance. Everyone has four basic components in their financial structure: assets, debts, income, and expenses.

What's the 50 30 20 budget rule? ›

What is the 50/30/20 rule? The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.

What are the 3 types of finance? ›

The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.

How can I improve my personal finance skills? ›

Here are seven to get you started.
  1. Track your spending to improve your finances. ...
  2. Create a realistic monthly budget. ...
  3. Build up your savings—even if it takes time. ...
  4. Pay your bills on time every month. ...
  5. Cut back on recurring charges. ...
  6. Save up cash to afford big purchases. ...
  7. Start an investment strategy.
28 Sept 2021

What is the most important skill in finance? ›

Top Financial Skills
  • Analytical Thinking. Analytical thinking is a crucial skill for finance professionals. ...
  • Accounting Skills. ...
  • Business Intelligence. ...
  • Financial Modeling. ...
  • Financial Reporting. ...
  • Cash Flow Management. ...
  • Mathematics. ...
  • Financial Management.
3 Feb 2021

Is the psychology of money worth reading? ›

'The Psychology of Money' is an essential read for anyone interested in being better with money. Fast-paced and engaging, this book will help you refine your thoughts towards money. You can finish this book in a week, unlike other books that are too lengthy.

What does rich dad say about money? ›

Rich people acquire assets. The poor and middle class acquire liabilities they think are assets,” rich dad says. The biggest challenge poor people have is knowing the difference between an asset and a liability. Knowing the difference between the two can help you become rich.

What is the best book for getting rich? ›

8 books to grow your money, wealth and financial prosperity
  1. Rich Dad Poor Dad. ...
  2. Think and Grow Rich. ...
  3. The Millionaire Next Door. ...
  4. The Total Money Makeover. ...
  5. Secret's of the Millionaire Mind. ...
  6. The Science of Getting Rich. ...
  7. I Will Teach You To Be Rich. ...
  8. Money Master The Game.

What books make millionaires? ›

Success Mindset (These books will teach you the right mindset for being successful.)
...
Beginner Level
  • Think and Grow Rich by Napoleon Hill.
  • The Success Principles by Jack Canfield.
  • Rich Dad Poor Dad by Robert Kiyosaki.
  • The 10X Rule by Grant Cardone.
24 Feb 2017

What Jobs will make me rich? ›

There are certain career paths that tend to create wealth more so than most.
...
Top 10 Jobs That Make You Rich
  • Doctor. ...
  • Surgeon. ...
  • Investment Banker. ...
  • Corporate Executive. ...
  • Petroleum Engineer. ...
  • Psychiatrist. ...
  • Data Scientist. ...
  • Research & Development Manager.

What qualities does a rich person have? ›

Wealthy people tend to be stable, flexible, able to make independent decisions, and more focused on themselves than others (but in an oddly positive way). "Wealth consists not in having great possessions," the Stoic philosopher Epictetus once said, "but in having few wants." Sounds wise.

What makes a rich life? ›

“To live richer is to follow the inner path to wealth and abundance. This includes the progressive realization of worthy goals, to love and have compassion and, most importantly, to always be in touch with your creative consciousness, which is the source of all riches.”

What are the 7 key components of financial planning? ›

A good financial plan contains seven key components:
  • Budgeting and taxes.
  • Managing liquidity, or ready access to cash.
  • Financing large purchases.
  • Managing your risk.
  • Investing your money.
  • Planning for retirement and the transfer of your wealth.
  • Communication and record keeping.

What are the 5 finance principles? ›

The five principles are consistency, timeliness, justification, documentation, and certification.

What are the 5 steps of achieving personal finance? ›

Define. Gather. Analyse. Develop. Implement.
  • Step 1 - Defining and agreeing your financial objectives and goals. ...
  • Step 2 – Gathering your financial and personal information. ...
  • Step 3 – Analysing your financial and personal information. ...
  • Step 4 – Development and presentation of the financial plan.

What is the rule of 72 in finance? ›

Do you know the Rule of 72? It's an easy way to calculate just how long it's going to take for your money to double. Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double.

What is Dave Ramsey 25 rule? ›

For decades, Dave Ramsey has told radio listeners to follow the 25% rule when buying a house—remember, that means never buying a house with a monthly payment that's more than 25% of your monthly take-home pay on a 15-year fixed-rate conventional mortgage.

What is the 70 rule in budgeting? ›

Well, 70% of your monthly budget should go to monthly expenses and 20% should go to savings.

What are the 8 sources of finance? ›

Sources of finance for business are equity, debt, debentures, retained earnings, term loans, working capital loans, letter of credit, euro issue, venture funding, etc. These sources of funds are used in different situations.

How can I study finance? ›

Learn and Master the Basics of Finance
  1. Understand basic to moderately complex finance topics.
  2. Understand the "Financial Times" or any other similar business newspaper or magazines.
  3. Talk confidently about the latest financial issues at dinner parties.
  4. Learn the techniques to managing finances and building wealth.

What are the 7 finance function? ›

The seven popular functions are decisions and control, financial planning, resource allocation, cash flow management, surplus disposal, acquisitions, mergers, and capital budgeting.

What is the best financial advice? ›

Here are 10 key tips to getting ahead financially.
  1. Get Paid What You're Worth and Spend Less Than You Earn. ...
  2. Stick to a Budget. ...
  3. Pay Off Credit Card Debt. ...
  4. Contribute to a Retirement Plan. ...
  5. Have a Savings Plan. ...
  6. Invest. ...
  7. Maximize Your Employment Benefits. ...
  8. Review Your Insurance Coverages.

What are 7 ways that can improve financial wellness? ›

Actions that could improve your financial wellbeing
  • Create a budget that works for you. ...
  • Consider rolling your debts into one. ...
  • Try to save a bit of money regularly. ...
  • Set aside some emergency cash. ...
  • Be open to talking money with your partner. ...
  • See if you can get a better deal with your providers.

How can I reach my financial goals fast? ›

7 steps to achieve your financial goals faster
  1. Write down your financial goals.
  2. Create SMART goals.
  3. Track your cash flow.
  4. Allow flexibility in your spending.
  5. Increase your disposable income.
  6. Reward yourself at significant milestones.
  7. Find an accountability partner.
3 Oct 2021

Why is finance so hard? ›

Most students find a finance degree difficult because of the moderately complex mathematics involved, the interdisciplinary approach, and the unfamiliar concepts and vocabulary included in the major. Finance is not only the study of the stock market or money. It is a much more comprehensive subject than that.

Is finance hard to study? ›

While finance requires some mathematics training and some knowledge and skills in accounting and economics, it's not necessarily more difficult than any other field of study, particularly for people with an aptitude for math.

Which skill is best for money? ›

Top 20 Skills to Earn Money:
  • Web Development. A web developer creates programmes and applications for the World Wide Web. ...
  • Mobile App Development. ...
  • Digital Marketing. ...
  • Graphic Design. ...
  • Real Estate Investment. ...
  • Foreign Currency Exchange Trading (FOREX) ...
  • Video Game Testing. ...
  • Creative Writing.

What are the four important roles of a finance? ›

Key responsibilities of a Financial Manager

Raising Funds. Allocation of Funds. Profit Planning. Understanding Capital Markets.

What is the most important number in finance? ›

1. Net Worth. Your net worth is by far the most important of the financial numbers, but also the most overlooked.

Why do rich people read? ›

But, reading does play a catalytic role in your journey to become rich. A majority of successful and rich people do share reading as a common trait. Reading allows you to learn from others' successes, and attain success faster. In this article, we'll discuss why and how reading can make you rich.

Why do rich people read alot? ›

Because successful people see books as a gateway to knowledge. As a result, they tend to read books that are going to help them grow their minds and improve their lives. This is important because, the truth is, if you're not learning anything of value, how do you expect your life to change?

What is toxic money mindset? ›

Toxic money is money that you begrudge. Usually, it comes from a source that you once loved or appreciated, but there has been a negative shift in your feelings; while everything else about the relationship has soured, the financial tie persists.

What is the most important asset Rich Dad Poor Dad? ›

Your Mind. Robert wrote in Rich Dad, Poor Dad, "Your mind is your greatest asset, so be careful what you put into it." This quote remains as true today as it was 20 years ago. Your mind is one of the only assets in the world that will never decrease in value.

What were the 10 steps in Rich Dad Poor Dad? ›

The Top 10 Rules from the Author of Rich Dad, Poor Dad that'll Make You a Better Real Estate Agent
  • The more you give, the more you receive. ...
  • Change the way you think. ...
  • Focus-Follow One Course Until Your Successful. ...
  • Hard times bring new opportunities. ...
  • Design the business properly. ...
  • Knowing what you are working hard for.

What is a true asset Rich Dad Poor Dad? ›

"An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket," the book explains. In this sense, rich people acquire assets (securities and investments) and poor people add liabilities (commitments and obligations).

Why do u need money? ›

Money can't buy happiness, but it can buy security and safety for you and your loved ones. Human beings need money to pay for all the things that make your life possible, such as shelter, food, healthcare bills, and a good education.

Can saving money make you rich? ›

Saving money does not protect you from market conditions such as inflation and economic downturns. In essence, saving money creates opportunity, but investing is the way to capitalise on the chance to create more wealth. The value of money decreases over time.

What books should you read after Rich Dad, Poor Dad? ›

7 life-changing financial literacy books like “Rich Dad, Poor Dad...
  • Think and Grow Rich by Napoleon Hill.
  • I Will Teach You to Be Rich by Ramit Sethi.
  • The Simple Path to Wealth by J.L. Collins.
  • Set for Life by Scott Trench.
  • Quit Like a Millionaire by Kristy Shen and Bryce.
21 Dec 2021

What is more powerful than money Rich Dad, Poor Dad? ›

But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth. Robert T. Kiyosaki, Rich Dad Poor Dad: What The Rich Teach Their Kids About Money - That The Poor And Middle Class Do Not!

What books are similar to Rich Dad, Poor Dad? ›

Rich Dad Poor Dad

What are books like Rich Dad, Poor Dad called? ›

The Cashflow Quadrant is another popular book on personal finance by Robert Kiyosaki. If you liked reading Rich Dad Poor Dad, this book could be a good read. The Cashflow Quadrant is a way to categorize the people based on how people earn money.

What does rich dad say about money? ›

Rich people acquire assets. The poor and middle class acquire liabilities they think are assets,” rich dad says. The biggest challenge poor people have is knowing the difference between an asset and a liability. Knowing the difference between the two can help you become rich.

What is the most important asset Rich Dad, Poor Dad? ›

Your Mind. Robert wrote in Rich Dad, Poor Dad, "Your mind is your greatest asset, so be careful what you put into it." This quote remains as true today as it was 20 years ago. Your mind is one of the only assets in the world that will never decrease in value.

How do I learn to be rich? ›

To pay off your debt and learn how to get rich, you should:
  1. Quit adding more debt to your life. ...
  2. Be realistic with your income and spending. ...
  3. Decrease your spending and expenses. ...
  4. Make more money. ...
  5. Pay more than the minimum. ...
  6. Put little amounts toward your debt.

What assets do the wealthy own? ›

Investing Only in Intangible Assets

Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork. Real estate continues to be a popular asset class in their portfolios to balance out the volatility of stocks.

What does Rich Dad, Poor Dad teach you? ›

The overarching theme of Rich Dad Poor Dad is how to use money as a tool for wealth development. It destroys the myth that the rich are born rich, explains why your personal residence may not really be an asset, describes the real difference between an asset and a liability, and much more.

What is a true asset Rich Dad, Poor Dad? ›

"An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket," the book explains. In this sense, rich people acquire assets (securities and investments) and poor people add liabilities (commitments and obligations).

What are the benefits of reading Rich Dad, Poor Dad? ›

It teaches you to understand that you have a choice in life

In this day and age, there are a plethora of ways to generate income. Instead of staying at a job we don't like for the sake of paying bills, 'Rich Dad, Poor Dad' encourages us to explore more options on how to make money in order to escape from the rat race.

What are some books similar to 48 Laws of Power? ›

The 48 Laws of Power

What were the 10 steps in Rich Dad, Poor Dad? ›

The Top 10 Rules from the Author of Rich Dad, Poor Dad that'll Make You a Better Real Estate Agent
  • The more you give, the more you receive. ...
  • Change the way you think. ...
  • Focus-Follow One Course Until Your Successful. ...
  • Hard times bring new opportunities. ...
  • Design the business properly. ...
  • Knowing what you are working hard for.

How Do You Think and Grow Rich summary? ›

Think and Grow Rich by Napoleon Hill examines the psychological power of thought and the brain in the process of furthering your career for both monetary and personal satisfaction. Originally published in 1937, this is one of the all-time self-help classics and a must read for investors and entrepreneurial types.

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