The 5 personal finance books that everyone should read!
While putting the “The 5 personal finance books that everyone should read” list together, it needed to be relevant to the current environment we are in today. Right now, 64% of Americans are living paycheck to paycheck. (Lending Club Survey)
If we connect the dots, that means more than half of America is living paycheck to paycheck.
These people find themselves in this situation at no fault of their own. The educational system in America has mostly failed when it comes to teaching personal finance.
We want to offer up a starting point for those looking to move from surviving too thriving in their personal finances. This is not your average list of finance books. These books offer up a guide to help you take action and get your money under control.
Here is the list below:
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You are probably wondering why the list is 6 books and the last two don’t look like they have anything to do with money.
It will make more sense at the end so let’s get started and dive into each book.
The Total Money Makeover by Dave Ramsey
This is a great book for anyone that is deep in the rabbit hole of debt. You will be able to take action and begin taking steps to start improving your financial situation immediately. The Total Money Makeover is designed for people that are feeling hopeless and scared when it comes to their pocket book. Your finances are not hopeless, read this book. You will get a step by step process to look at your personal finances, assess the situation and begin to dig out of the debt whole.
I Will Teach You To Be Rich by Ramit Sethi
Yes please. We all want to be rich but it does not just happen because we want it to. It requires intention and this book will help you set that intention in your financial plan. From there you will learn step by step how to automate your finances and set your wealth building on autopilot. This is great for anyone in debt, starting from zero or even those who may have a comma or two in their bank account.
You might be thinking, those two books are very similar.
But….
There is more than one way to skin a cat. Figure out which works best for you by reading both. Also the best way to learn something is through repetition.
Let’s move on.
Rich Dad Poor Dad by Robert Kiyosaki
In this book, Robert does a great job of expressing the difference between poor thinking and rich thinking. He uses stories from his childhood to help you understand the important principles of money, how money works and how to make it work for you. Big take away from this book is how you think about money matters. Scarcity is a mindset. If you can change your mindset, then it does not have to be your reality.
The Richest Man In Babylon by George S. Clason
Through the stories in this book, George Clason does an excellent job of combining all the principles of money into one. It covers; living below your means, saving money for investing, why you should invest money and the importance of time and how it compounds your investment. This is basically personal finance 101 in a fun and easy to read book.
Now, we can finally address what is with these last two books?
The title stated 5 and there is 6 listed. The last two are not even really related to money.
Well the reason is that the first four teach you actionable steps as well as the principles needed to improve your personal finances.
There is more to it than that.
None of the info in these books matter if you don’t taken any action. Also, it is not a one and done situation. Good money habits are not created over night and require constant effort.
Therefore, the last two books are meant to be read together as if they are the 5th piece of the financial puzzle. Sure, you can read the first four books and see some financial improvement by making a few changes. If you don’t make those changes become a habit then you won’t get to see the compounding effect that can actually change your life. (pun intended)
The Power of Habit by Charles Duhigg
Just like the title says, you will learn the importance of habits and how they impact your everyday life. You will also learn how to change bad habits and start new ones. You know, like good money habits.
The Compound Effect by Darren Hardy
This book really wraps up the whole personal finance enchilada. It will explain how much impact continually making good choices can have on your life. A good financial habit compounded over a long enough period of time can change everything.
To clarify, this book list was not for the CEO who is making $1 million plus per year.
This list was for the majority of America that is struggling financially. This list provides actionable information that can be implemented immediately. These books teach the basic principles of money and growing wealth. From there, you will have learned how good financial habits compounded over time lead to a future filled with financial freedom.
Hopefully you enjoyed the list of The Top 5 personal Finance books Everyone Should Read.
Cheers!
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