10 Best Personal Finance Books Of All Time Cover

10 Best Personal Finance Books Of All Time!

10 Best Personal Finance Books Of All Time!

“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”  -Dave Ramsey

These wise words of David Ramsey reflect the necessity of everyday lives, that is, learning about healthy spending habits and better ways of investment to lead a financially sound life.

Today in this world of never-ending expansion of economies, rise in prices, and increasing demands, individuals suffer from financial problems like debts, losses and increasing expenditure. To understand more about better ways of budgeting and inculcation of financially sound habits in order to overcome these problems, you should read books on personal finance where you can learn all about your personal income, expenditure, and savings.

10 Best Personal Finance Books Of All Time

Given below are the top ten books on personal finance which can shape your mind towards the same.

1. Rich Dad Poor Dad by Robert T. Kiyosaki

rich dad poor dad by robert kiyosaki What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki- You should always start with the best and the consistently number one ranked book on personal finance has undoubtedly been this Kiyosaki’s masterpiece.

The book talks about two different dads living two different lives altogether. One dad is rich and the other is comparatively poor. The book busts the misconception of relating highly educated to being rich and vice-versa. The book beautifully explores the utility of investment and how you can save money by working for it to make the money work for you later. The lucidity of the book makes it easy to read and understand. It definitely helps in improving your financial intelligence.

2. The Millionaire Next Door by Thomas J. Stanley & William D. Danko

the millionaire next door

This book is great for beginners who have just entered the realm of personal financing. The book is simple and easy to understand. It talks about the rudimentary concepts and instructions that should be followed and kept in mind while learning about personal finance. The author talks about establishing a healthy relationship between you and your money. Establishing goals are very important. You should choose your aim wisely and work for it.

3. The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey

the total money makeover

Well, we started this article by quoting David Ramsey and there is no reason as to why he should not be making it to this list. He has written one of the finest financial works for especially the young lot who wants to start investing and make money. Total Money Makeover talks in length about creating a well-toned budget by employing healthy money habits.

He talks about flabby expenses that are unhealthy and can push you into unending debt cycles. According to him, to be financially fit, you need to cut out those extra expenses carbs and stick to fat-free savings to get a total money makeover!

Also read: 7 Best Value Investing Books That You Cannot Afford to Miss.

4. The Money Book for the Young, Fabulous, & Broke by Suze Orman

The Money Book for the Young, Fabulous, & Broke by Suze Orman

This book on personal finance is written by a financial expert whose main focus is on the present generation who are suffering the so-called “Generation Debt”.

According to Suze, this Generation Debts accounts for people in their 20s and 30s who are graduating from their colleges with a heavy load of education loans and other student loans. They are stuck in a financial environment where the money is not generated easily, employment is not for all and therefore, they should do something to take the matters into their own hands to secure their future and make money. This book is known worldwide for its relevance and the present problem it touches that is faced by young people.

5. Think and Grow Rich by Napoleon Hill

Think and Grow Rich by Napoleon Hill

This book is very inspirational for those who want to take up their lives to new heights, those who are not afraid to act to further their lives and reaching the goals they had set. Despite the old age of the book, it contains highly relevant lessons for each one of us. It talks about the way in which you can acquire wealth.

The author highlights the importance of planning and budgeting in order to amass wealth. Book also mentions a number of achievers and their success stories. The author also talks about the need for persistence which makes all the difference between a success and a failure and most importantly, the emphasis on knowledge acquisition before wealth acquisition which is truly marvelous to read!

6. Thinking, Fast and Slow by Daniel Kahneman

Thinking, Fast and Slow by Daniel Kahneman

Daniel Kahneman who has been a recipient of the Nobel Prize has worked on this book as a reflection of his own life. This book talks about the decision making processes taken p by our mind. He talks about the capabilities of a human being when it comes to thinking. He differentiates this human mind into two systems where one is fast but emotional and the other is slow but more logical.

Through his book, Daniel tries to balance these two systems and bring about a synthesis which is better judgment and decisions. He talks about the benefits of slow thinking and how it helps in reaching to better and more reliable decisions. Lastly, he tries to cover the importance of harvesting distinct personal and professional lives and safeguarding of both.

Also read: 10 Best Mutual Fund Books Of All Time!

7. Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth by T. Harv Eker

Secrets of the Millionaire Mind- Mastering the Inner Game of Wealth by T. Harv Eker

This book by Eker acts as the bridge between aiming at success and achieving it. It is for those who believe in doing rather than just saying. This book explores mind-boggling questions like why some people become rich easily while others struggle to reach their level. Is there something different in their education or skills or training or work habits? Or is it just good luck for them? Such questions will really trigger your mind into thinking.

Eker talks about achieving success by using the blueprints of your personal money in your subconscious minds. It is these blueprints that will determine anybody’s financial lives. If your blueprint does not aim at making high levels of success, you will never be able to earn big money. It is that simple! Similar such ideas have been touched upon.

8. The Wealthy Gardener: Life Lessons on Prosperity between Father and Son by John Soforic

The Wealthy Gardener- Life Lessons on Prosperity between Father and Son by John Soforic

Do you know why this book is special? This book is special because it was written by a financially independent father for his financially dependent son. It will give you a glimpse of their lives where the father is educating his son on how to pursue his goals and further his interests.

The book talks about amassing wealth by earning excess money and saving. It talks about the ways in which one can overcome any hurdle that can land him inside a debt trap and wage slavery. He describes ways in which you can transform your financial weakness to strengths and how you should sense each opportunities and troubles before they come knocking your door.

9. The Richest Man in Babylon by George S. Clason

The Richest Man in Babylon by George S. Clason

This is a classic book when it comes to books on personal finance. This book has been appreciated by millions. The author extensively talks about the ways in which you can accomplish personal wealth. He talks about personal financial planning. The language is simple and easy to grasp.

This book is more like a guide that tries to address the present-day financial problems that you may be suffering which is offsetting you from the path of success and accomplishment. Going through the Babylonian time and Babylonian stories of rages to riches will definitely boost you up and make you your best financer to solve all the related problems. These solutions will stay with your forever and guide you throughout your path to prosperity.

10. Psych Yourself Rich: Get the Mindset and Discipline You Need to Build Your Financial Life by Farnoosh Torabi

Psych Yourself Rich- Get the Mindset and Discipline You Need to Build Your Financial Life by Farnoosh Torabi

This book comes to you by the well known personal finance star, Torabi. She talks about the importance of money and why it should be earned. The best part of Farnoosh’s work is that she extensively talks about the application of ways and methods she has discussed in order to gain wealth and success. It is more practical and handy.

According to the author, developing healthy habits, disciplined life, and a focused mindset are some of the most important essentials required to achieve your goals. A disciplined attitude can only help you grow as a financial well being. You should live in the present thinking about your future. Future planning is very important. You should work harder to earn big and thus, make every money of your count.

Also read: 3 Amazing Books to Read for a Successful Investing Mindset.

Closing Thoughts

The above-mentioned books will definitely help in building up your repository of financial knowledge. These books are not just meant for those who come from a finance background but for everyone who wants to succeed in their lives, those who want to earn and make it big.

3 Amazing Books to Read for a Successful Investing Mindset

3 Amazing Books to Read for a Successful Investing Mindset.

3 Amazing Books to Read for a Successful Investing Mindset:

Hi Investors! Today we are going to discuss something different from my usual posts.

In the past few years, since I started investing, I met a number of people who asked me why I am investing in stocks on my own. Why don’t I just choose a SIP or mutual fund? Why do I put so much efforts and time when someone else (like an investment advisor) can do the same?

While I try to demonstrate the importance of managing our own financials, I find it a little difficult to explain to a few people. This is not because of lack of education or their academic background in different industry/sector. Many of my friends with similar qualifications like me are ignorant of their own financial situation.

The main reason for these people having such struggles is an unhealthy or unwilling mindset towards investing. Their mind is not trained towards the importance of investing and the wonders it can do in wealth creation.

Therefore, today I am going to suggest 3 amazing books to read for a successful investing mindset. These books will guide you, motivate you and open your eyes for a healthy mindset for investing. Here are the 3 books that we are going to discuss in this post.

  1. Think and grow rich by Napoleon Hill
  2. The Richest man in Babylon by George Clason
  3. Rich Dad Poor Dad by Robert Kiyosaki

I personally recommend you to read all of these books as the principles & lesson described in these books can help you a lot to tackle financial problems throughout your lifetime.

3 Amazing Books to Read for a Successful Investing Mindset

1. Think and Grow Rich

think and grow rich by napoleon hill

Think and grow rich is a 1930’s classic that is still the best selling in 2017. The lessons from this book proved out to be time-tested i.e. applicable all the time. This book was written by Napoleon Hill on the suggestion of Andrew Carnegie. The first edition of this book was originally published in 1937.

Andrew Carnegie proposed Napoleon Hill to interview 500 greatest men in the 20th century who were rich and successful in their industry. Carnegie offered to provide the fund for traveling and meeting these personalities in exchange for Hill’s time. He wanted Napoleon to study the common traits among all these rich and successful peoples.

It took Napoleon Hill almost 20 years to interview all the 500 people. He interviewed Henry Ford, JP Morgan, Alexander graham bell, Thomas Edison, Theodore Roosevelt, and many other famous personalities. He finally summarised his studies from the interview in the book- ‘Think and grow rich’.

In this book, the author Napolean Hill educates 13 principles required in a person in order to become RICH.

Thirteen Principles: The Power of thought, Desire, Faith, Auto-suggestion, Specialized knowledge, Imagination, Organized planning, Decision, Persistence, the Power of the mastermind, the Mystery of sex transmutation, the Subconscious mind, and the Sixth sense.

Let me cover the two principles described in the book here. I won’t be covering all as it will kill the fun of reading it:

A) The Power of Thought:

power of thought

In this section, Napoleon Hill describes how your thought can help you achieve what so ever you want in your life.

To explain this, he gave an example of Edwin Barnes, who wanted to do a partnership with Thomas Edition. Let me be clear here. He wanted to do partnership- not ‘work for’ Thomas edition.

When the thought originally generated in his mind, he didn’t know Edison. He lived miles away from where Edison lived. He didn’t have money or resource to meet Edison. However, the thought was so persistent that even after facing a number of obstacles, several years later, he became partners with Thomas Edison. He did a partnership in Edison’s dictating machine as a distributor.

In short, Barnes’s thoughts provoked his desires to achieve what he truly wanted in his life.

B) Burning Desire:

burning desireNapoleon Hill considers this trait as the most important of all to become rich and successful.

A burning desire is not about wishing, it is about wanting. A wish might not get fulfilled, however, if you want something passionately, you will find a way to get it.

In this section, Hill conveys the readers to ensure that the ‘want’ becomes ‘desire’.

Further, Hill proposes to develop a clear and concise statement of desire – What do you want and when you want it. If you want money, then be specific about the amount that you want and time frame when you want it. For example, if you want to become a millionaire, be specific that you want to earn one million by 1st January 2025.

You need to revisit the desire often to imprint it in your mind. Read the statement twice daily, in the morning and in the evening.

In addition, you need to create a specific plan to reach your goal and you need to start taking steps immediately. Besides, if you want to meet your desire, you have to sacrifice something. This might be your time, money, fun with friends or anything worthy.

TEMPLATE:
I want to earn ____________ by ______________ and for that I am will to _________________.

Overall, create a burning desire for what you want if you want to become successful.

These are the two out of thirteen principles taught in the ‘Think & Grow Rich’. Apart, there are many important lessons in the book that will help you to develop your mindset for a successful life ahead.

2. The Richest Man in Babylon

The Richest Man in Babylon is one of the best classic personal finance books that I have ever read. The lessons in this book are pretty simple and effective.

The book consists of different stories from the Babylonian days. A few of stories for the collection are- The richest man in Babylon, Goddess of good luck, The gold lender of Babylon, The camel trader of Babylon etc.

The one story that I particularly liked was the story of a Babylonian slave who was extremely poor with lots of debt. He later learned the rules of gold and with the newly acquired wisdom, he turned out to be one of the richest men in Babylon.

Here are three of my favorite lessons learned from this book:

1- Pay yourself first.

gold

Save at least 10% of what you earn. You have earned the money from your hard work and it’s your right to keep it for your self.

Pay yourself first, and then you give the remaining to anyone you want to, like your landlord, your maid, restaurant owner, laundry guy etc. This is the rule no one of money.

Here is an abstract from the book about this rule:

“’I found the road to wealth when I decided that a part of all I earned was mine to keep.’ – The teacher said.

‘But all I earn is mine to keep, is it not?’, I demanded.

‘Far from it,’ the teacher replied.  ‘Do you not pay the garment-maker?  Do you not pay the sandal-maker?  And Do you not pay for the things you eat?  Can you live in Babylon without spending?  What have you to show for your earnings of the past month?  What for the past year?  Fool!  You pay to everyone but yourself.  Dullard, you labor for others.  As well be a slave and work for what your master gives you to eat and wear.  If you did keep for yourself one-tenth of all you earn, how much would you have in ten years?’ “

2- Only seek advice from those that are wise and knowledgeable in the subject.

Take the counsel of the better men and learn from their mistakes. Here is an abstract about this rule from the book:

“Counsel with wise men.  Seek the advice of men whose daily work is handling money.  Let them save you from such an error as I myself made in entrusting my money in the judgment of Azmur, the brickmaker.  A small return and a safe one is far more desirable than risk.”

3- “Better a Little Caution Than a Great Regret.”

A little caution with the money can stop you from lots of trouble in the future. This rule advocates the readers to invest intelligently as it’s no good regretting later.

Books to read:The Intelligent Investor by Benjamin Graham Summary & Book Review

In addition, the book also describes the laws of gold, which like the law of gravity is applicable everywhere and in every time period. Here are the seven simple rules of money:
  1. Start thy purse to fattening: Save money.
  2. Control thy expenditures: Live under your means. Do not overspend.
  3. Make thy gold multiply: Invest intelligently.
  4. Guard thy treasures from loss: Avoid bad investments.
  5. Make of thy dwelling a profitable investment: Own the property/house you live in.
  6. Ensure a future income: Have insurances.
  7. Improve thy ability to earn: Keep developing. Become wiser and knowledgable

Also read: 10 Must Read Books For Stock Market Investors.

All the lessons learned in this book are effective an easily implementable. I have read this book a number of times and is my personal favorite personal finance book. I definitely recommend you to read this book. You can check out more about ‘The Richest Man In Babylon’ by George S. Clason on Amazon here.

3. RICH DAD POOR DAD

This is the first mind-opening book that I read during my freshmen year in college. The book is a life changer. It made me realize the importance of financial education and how I have been ignoring this all my life.

The book describes the lack of financial education given to the kids. The problem with financial education is that it isn’t taught in school. Hence, the family/parents have the responsibility to teach it. However, the trouble is that unless your parents are in the top 1% (income-wise), they are going to teach you to be poor. This is not because the poor don’t love their kids. It’s because they don’t know how to be rich and what exactly to teach.

In the book, the author has two fathers. First, his original father, who was a highly educated government officer yet poor. And the other was his friend’s father, who was not much academically educated but rich. Kiyosaki describes how the lessons given by both his fathers were completely contrasting.

rich people

At a very young age, Robert Kiyosaki decided to listen to his RICH dad instead of his profoundly educated POOR dad. A few of the important lessons learned by Kiyosaki from his rich dad were:

1. Always invest in assets: You should increase your assets and reduce liabilities. According to Robert Kiyosaki

  • An asset is anything that puts money in your pocket.
  • A liability is anything that takes money out from your pocket.

Assets can be a business, real estate, paper assets like stocks, bonds, etc. Whereas liabilities can be your expensive car, the big house bought on the mortgage, iPhone, etc.

2. Poor work for money and Rich make their money work for them.

3. Poor only have expenses, middle-class people buy liabilities and rich invests in assets.

Related Post: Rich Dad Poor Dad Summary- Lessons by Robert Kiyosaki

Apart, there are many important lessons in this book which will teach you why Rich are getting richer, and poor will remain poor.

Conclusion:

All the three books mentioned in this post is classic and time-tested. They will open your eye towards personal finance and help you to create a successful investing mindset. I highly recommend you to grab a copy of each one of them and start reading.

That’s all for today. I hope this post on “3 Amazing Books to Read for a Successful Investing Mindset” is useful to the readers. Do comment below which one is your favorite personal finance/ self-help book?