One of the best ways to improve your financial situation is to increase your financial literacy and the best way to do it that is reading a personal finance book. Reading books on money management and investing will help you improve your financial future and put you on the path to financial freedom. Although these skills are criminally taught in schools, there are tons of great books out there to help you improve your skills. Check out six of them below!
The Richest Man in Babylon by George S. Clason
Instead of taking a purely didactic approach like many books do, The Richest Man in Babylon uses parables to demonstrate financial concepts like frugality, financial planning, and building your net worth.
If you’ve ever heard the phrase “pay yourself first” but didn’t have a clear idea of what exactly it meant, read this book.
Also, the simplicity of this book makes it a great starting point for teaching your children about money.
The Psychology of Money Morgan Housel
Doing well with money is not necessarily what you know. It’s about how you behave. And behavior is hard to teach, even to really smart people.
A financial plan is worthless without proper execution. But sticking to a budget and making smart financial decisions on a regular basis can be a challenge.
“The Psychology of Money” reveals the real ways people make decisions about money and helps readers understand their own behavior when it comes to finances.
Why didn’t they teach me this in school? by Cari Siegel
Ask anyone what they wish they had learned more about in school and the answer is probably money. More specifically, how to properly manage your finances — enter Kerry Siegel’s title, “Why Didn’t They Teach Me This in School?” Siegel, a retired CEO, breaks the book down into 99 principles and eight money lessons you should have learned in high school or college , but you didn’t. This book was originally intended for his five children when he realized they hadn’t learned important principles of personal finance before they entered the real world, but it grew into a well-reviewed read full of money lessons, as well as first-hand experience and advice from Siegel. . This easy-to-read book is ideal for new graduates or anyone looking to start their personal financial journey on the right track.
The Winning Playbook by Rob Welsh and Jonathan Scott
How is it that professional athletes have signed million dollar contracts and then found out they will have to work another job in the off season to make ends meet? The answer can be traced to a lack of awareness of how the monetary system works and a lack of understanding of how to effectively manage one’s finances.
With over 17 years in the financial industry, Rob Welsh has teamed up with former National Football League player Jonathan Scott to share his knowledge and experience and impart that wisdom to others in his book, The Winning Playbook.
The Millionaire Next Door by Thomas J. Stanley and William D. Denmark
This book is incredibly eye-opening, especially for younger individuals and families just starting out.
Combining data and expert insights, “The Millionaire Next Door” reveals the truth about what a millionaire really looks like – and it might not be what you expect.
The ideas covered in this book are simple but powerful: “Spend less than you earn. Save money every month. “If you spend less, your income will be less, and so will your taxes,” says Lawrence Pohn, a tax expert and certified financial planner in California, who cites the book as one of his favorites.
I Will Teach You To Be Rich Ramit Sethi
Being rich does not mean not spending money at all. In “I Will Teach You to Be Rich,” a New York Times and Wall Street Journal bestseller, financial expert Ramit Sethi explains that you can spend your money guilt-free as long as you invest and allocate it properly. This title talks about how to deal with all the common money pitfalls, from paying off student loans to how to save each month and even how to get out of late fees. This 10th anniversary edition includes updated views on technology, money and psychology, as well as some success stories from readers who actually got rich by reading — you guessed it — Sethi’s book.