Have a goal to read more books or improve your finances this year? If so, why not combine the goals? Below is a list of some of the best personal finance books out there. Read one (or all of them) this year to become more financially literate and take practical steps to improve your financial situation.
I will Teach You To Be Rich by Ramit Sethi (2009)
Much of the money advice we hear involves a lot of dos and don’ts and intimidating terminology. But in “I Will Teach You to Be Rich,” Ramit Sethi goes beyond math and focuses on the psychology of money, walking the reader through a practical, six-week program. Sethi writes in a down-to-earth, humorous style that makes this an easy read. You can download the first chapter of the book at http://iwillteachyoutoberich.com/blog/thank-you/first-chapter/.
Notable quote: “Investing is the single most effective way to get rich. By opening an investment account, you give yourself access to the biggest moneymaking vehicle in the history of the world: the stock market.”
The Millionaire Next Door by Thomas J. Stanley and William D. Danko (1996)
“The Millionaire Next Door: The Surprising Secrets of America’s Wealthy“ reveals seven traits that appear again and again among millionaires. The observations in the book come from interviews with millionaires, many of whom are blue-collar workers — in other words, the people next door.
What are the seven traits? The millionaire next door:
- Lives below their means,
- Spends time learning how to build wealth,
- Prioritizes financial independence above social status,
- Didn’t rely on parents for financial help once becoming an adult,
- Raises economically self-sufficient children,
- Successfully targets market opportunities and
- Has chosen the right occupation.
Notable quote: “Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.”
The Psychology of Money by Morgan Housel (2020)
Money can make us irrational, and when we’re making money decisions, we can behave with overconfidence, impatience and anchoring bias (the tendency to rely too much on the first piece of information we learn about a topic). These irrational beliefs and the emotions surrounding money have a real effect on our personal finances and, by extension, the global markets. In “The Psychology …….