People sometimes ask how I got into personal finance. The simple answer is by reading. Admittedly, I didn’t know much about money as a young adult. It wasn’t until I graduated college and found myself struggling to pay off my student loan debt that I decided to pick up my first personal finance book. Since then, I’ve been hooked! Here are 5 of my favorite personal finance books.
1) Rich Dad, Poor Dad by Robert Kiyosaki
Rich Dad, Poor Dad is unique for its conceptual descriptions. If you’re interested in wealth building versus simply earning more money, then this is the book for you.
Kiyosaki describes growing up with his father (the Poor Dad) and his friend’s father who was a business owner and mentor (the Rich Dad). In his book, he compares the thinking of his Poor Dad versus his Rich Dad and the lessons he has learned from both. He also outlines some very useful bread and butter concepts in the book, including the cash flows of the rich versus those of the middle class.
Kiyosaki argues there are very real difference in how the rich allocate their resources versus how the middle class allocate their resources. The rich put their money into cash flowing assets such as stocks, real estate and bonds. Whereas the poor put their money into liabilities that they think are assets, such as a home.
What I like the most about this book is the story behind it. It’s not a book that spews advice and facts to you. It’s concepts are very simple, but they are effective, and it’s an enjoyable read. Get it at Amazon now for only $8.43.
2) Total Money Makeover by Dave Ramsey
Although he can be controversial, there’s no doubting Dave Ramsey knows his stuff when it comes to money. Total Money Makeover was one of the first books I read when I was paying off debt, and I used most of his tactics to pay off my student loans.
If you’re struggling financially and aren’t sure where to start, this is a great book. Ramsey’s “baby-steps” map out the exact next step to take. His snowball method for paying off debt has helped thousands of people become debt-free. Be forewarned though, Ramsey’s advice is generally considered excellent for paying off debt and basic budgeting, he is less good for advanced investing topics.
Curiously enough, the hardcover is less expensive than paperback versions of this book. You can find the hardcover for only $15.00 now at Amazon.
3) Hustle Away Debt by David Carlson
Looking to make more money? Or, start a business in your spare time? Then read Hustle Away Debt by David Carlson.
Carlson, who runs the popular personal finance site Young Adult Money, has been a side-hustler for years. In his book, he talks about how to leverage a side hustle along with your day-job to pay off debt.
Personally, I was inspired by the site Young Adult Money to start my writing career in order to pay off debt. Eventually, I actually started writing for Young Adult Money as part of my career! Without Carlson’s site and book, I wouldn’t have been able to pay off my student loans as soon as I did! So, I recommend his work. You can can buy the paperback at Amazon from $14.25.
4) The Psychology of Money by Morgan Housel
Most people think about the math behind the money, but what about the psychology? The Psychology of Money by Morgan Housel discusses the behaviors associated with personal finance. Housel is an interesting guy, he’s a podcaster and one of the founders of the Collaborative Fund, a venture capital firm.
Housel basically says the following:
- People’s individual experiences impact how they perceive risk and reward
- Risk and luck matter: Hard work will get you far, but risk is always related to luck
- Money is never enough: real success is peace of mind
- Your savings rate, not the return on your investments, is what builds wealth
- Compounding matters: small changes repeated over time have big results
- Errors and failure are inevitable
- Needs and priorities change, take a balanced approach to your money.
If you understand the basics of money, but are interested in why we spend the way we do, then this is a must-read for your list. It’s fascinating to understand the behaviors behind our relationship with money. Get it at Amazon now for only $10.99.
5) You Are a Badass at Making Money by Jen Sincero
Jen Sincero is an interesting author. Born in 1965 Sincero is an award winning freelance business and personal success coach. Her first “you are a badass” book, You Are A Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life sold over 5 million copies and hit the #1 New York Times bestseller list, and she later won a Audie award for her audio version of that same book.
Sincero’s book focuses a lot on the psychology behind wealth – specifically the power of decision. She argues that you need to develop a wealth mindset and make a conscious decision to get out of debt, become a saver and improve your investing skills.
The author has written several books, but You are a Badass at Making Money is my favorites. If you are looking to increase your income but aren’t sure you can, Sincero’s book is for you. It’s an easy and fun read, and Sincero is genuine and approachable. If you doubt your ability to make more money, then give this book a chance! Buy the paperback at Amazon now for $8.48.
Readers, what is the #1 book that’s helped you with your finances? Leave a comment below.
And, if you’d like more favorites from Saving Advice, consider these:
17 Bills In Your Wallet Worth More Than Face Value
38 Ways To Make Extra Money You’ve Never Heard Of
Yes, You Can Improve Your Odds Of Becoming A Millionaire
