If you are ready to take charge of your finances, these are the best personal finance books for beginners to create wealth.
“When you’ve spent your entire life worrying about what can go wrong with money, it’s almost impossible to dream.” Ramit Sethi
Does anyone else agree?
Fortunately, you can get rid of the fear associated with money by reading personal finance books and creating a financial plan.
Of course, you have to apply the principles to see results; nevertheless, these books cover the essentials to get started on the journey to early retirement.
I have broken them down into four; Investing, Budgeting and Saving, Entrepreneurship, and Psychology to make it easy for you to pick the books that fulfill your financial needs most.
Here is the list of the 9 Best Personal Finance Books for beginners.
Finance/Investment
The Bogleheads’ Guide to Investing, Taylor Larimore, Mel Lindauer, and Michael LeBoeuf
The bogleheads’ guide to investing is a beginner-friendly practical investment manual.
The authors are all “bogleheads” who follow the tenets of Jack Bogle, founder of Vanguard, and are themselves, successful millionaire investors.
Consequently, the authors’ focus is on passive investment strategies that rely on investing in low-cost index funds.
The boglehead methods are perfect for those who want to minimize the risk associated with investing while earning a passive income.
The Millionaire Next Door, Dr. Thomas J. Stanley, and Dr. William D. Danko
This book completely changed my perception of what it means to be wealthy.
Stanley was obsessed with studying the wealthy, and from that obsession, this book was born.
According to Stanely, becoming a millionaire is not rocket science.
Unlike what social media and popular culture would have us believe, the principles of wealth creation do not include a fancy show of material things.
Instead, Stanely says; you must maintain a sober attitude, plan effectively, live below your means, and make smart financial decisions.
I Will Teach You To Be Rich, Ramit Sethi
I Will Teach You to be Rich is a 360-degree financial plan. Ramit covers everything you need to know about finances, investing, getting out of debt, and building wealth.
Moreover, I love that the book teaches you how to save money without deprivation.
For example, you can cut down expenses by spending money according to your values and ignoring what everyone else is doing.
Ramit goes even further by giving you the exact word-for-word scripts you can use to negotiate “everything” for better deals.
If you don’t have a long term financial plan and would like to create one, you’ll love the book.
Budgeting And Saving
Your Money Or Your Life, Joe Dominguez and Vicki Robin
Your Money Or Your Life will forever change the way you spend money and make it easier for you to save.
The authors’ philosophy is simple; your life is not worth slaving away 50 hours a week so that you can buy material stuff.
Consequently, adopting a Your money or your life philosophy will help you curb unwise purchases seeing that a new Tv set (especially if you don’t need it) will cost you 80 hours of your life.
Additionally, you’ll find it easier to save and invest, and when you do spend, it will be on the things that matter.
As a side note, there is now scientific evidence that shows stuff does not make us happy. I write more about it in detail here so you won’t be sacrificing much if you limit material purchases.
The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness, Dave Ramsey.
In Total Money, Makeover, Dave Ramsey sticks to the good old-fashioned way; build an emergency fund, get out of debt, invest and build wealth subsequently.
The book has that “get your life together” feeling so if you want to change your money habits, get out debt and save, but you feel overwhelmed, this book is a great start.
Dave offers a financial plan in small actionable milestones he calls “baby steps” that anyone can take as well as a supportive community to help you stay motivated.
Entrepreneurship
The 4-Hour Work Week, Tim Ferris
Tim Ferriss’s concept of early retirement has had a significant impact on most millennial entrepreneurs, myself included.
He sells the idea of developing a semi-passive income by building a business that is easy to automate. Once the business is automated, you’ll have free time to travel and do whatever fulfills you.
If you like the idea of building a semi-passive business, you’ll love the book.
Playing Big: Practical Wisdom for Women Who Want to Speak Up, Create, and Lead, Tara Sophia Mohr
I think everyone should read this book because we all deal with negative emotions at some point in our careers.
Tara Mohr’s views on listening to your inner mentor instead of critic, unhooking yourself from praise and criticism, relying on your inner wisdom, and playing big, are worth applying in any career.
Mindset
The Power of Habit, Charles Duhigg
Most of us know that building powerful habits can help you achieve anything you want.
In the power of habit, Duhigg walks you through the current psychology research as well as the techniques for identifying your cues, routines, and rewards.
Once you identify the cues that lead to your spending, saving, and money-making habits, you can begin substituting them for new routines to speed you up to success.
You Are a Badass At Making Money, Jen Sincero
Although this book is not for everyone, I still recommend it for those who want to change their mindset about money and need the motivation to take action.
Sincero doesn’t give any practical advice on how to make more money; instead, she walks you through the limiting core beliefs that may be keeping you from making more money, which I appreciate.
Anyway, you can expect to learn how to use mindfulness to get at the core of your limiting beliefs, use visualization to counter those beliefs, and generate enough positive feelings to help you take action.
If you liked this guide to the best personal finance books for beginners and still feel anxious about your finances, you need to check out our free self-care Journal below.
It’s the best solution around for those who feel overwhelmed and want to get enough clarity to take action.
If you have any questions or suggestions, please leave a comment below.
Cheers,
Sania.
Leave a Reply