Whether we like it or not, money has a big impact on our lives. With better money management, you could change your future for the better. Luckily, there are some amazing personal finance books that can help you get your financial life together.
Best personal finance books
The right information can completely change your life. Personally, I know my life would look completely different without these personal finance books.
As an avid reader, I can safely say that these books are packed with life-changing knowledge. Although I’ve read dozens of personal finance related books, I’m including my top five favorites to help you start your personal finance journey.
The Psychology of Money
The Psychology of Money: Timeless lesson on wealth, greed, and happiness by Morgan Housel is a thoughtful look at how we interact with money. Although it can be easy to say that everything with money is black and white, I don’t find that to be true.
Money, and our emotions surrounding money, is a gray area filled with personal confusions along the way.
If you are trying to sort out how money can be perceived by others and how money can affect your emotions, this is a great read!
The Millionaire Next Door
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas Stanley and William Danko was the first book I ever read about money. It completely changed the way that I approach my personal finances.
When I first read the book in high school at the behest of my dad, I thought it would be a boring read about people that were born into luxurious inheritances (which I was not). But I quickly discovered that the average millionaire was nothing like I had pictured throughout my childhood in South Florida. Instead, most American millionaires are self made and shy away from lavish displays of wealth.
Once I realized that millionaires are made through savings habits – not spending habits- my outlook on wealth building changed.
PS – if you like this book, then check out The Next Millionaire Next Door. It has an updated outlook for 2020.
Your Money or Your Life
Your Money or Your Life by Vicki Robin is an enduring classic for financial independence enthusiasts. Even if you don’t plan on joining the FIRE (Financial Independence Retire Early) movement, this book is worth the read.
Robin forces you to take a closer look at your relationship with money. Since many of our financial decisions comes down to emotions, it is critical to take the time to examine your opinions when it comes to money.
My big takeaway came from chapter 2 when Robin talks you through the process of calculating your life energy. It is a simple calculation to determine how much your time is worth in a real hourly wage. The eye-opening exercise can force you to rethink your income decisions. It definitely forced me to make some changes!
You Are a Badass at Making Money
You Are a Badass at Making Money by Jen Sincero is a fun read. But more importantly, it forces you to face your money mindset.
Before you write this book off due to the focus on mindset, I promise you that a large percentage of financial success comes down to your mindset. If you approach money in a negative way, then it can be difficult to build a stable financial future. Sincero walks through everything you need to know about tackling your money mindset.
Take the first step
Taking the first step towards a better financial future can be daunting. But every major journey starts with a single step in the right direction.
Don’t hold yourself back. Instead find a way to read one (of all) of these books through your local library or a bookstore.
Let me know which book is your favorite!
