Best Personal Finance Books – Our Top 8 Best Books (2023)

FAQs

What book is better than Rich Dad Poor Dad? ›

The Psychology of Money By Morgan Housel.

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.

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.

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.

Robert Kiyosaki

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 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.

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

What is the most important skill in finance? ›

'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.

“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.

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.

“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.”

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

What are the 5 steps of achieving personal 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.

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.

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

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.

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

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.

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.

Key responsibilities of a Financial Manager

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

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

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.

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?

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.

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 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).

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.

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.

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!

Rich Dad Poor Dad

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.

“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.

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 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.

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.

"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).

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.

The 48 Laws of Power

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.