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Here are some of the very best books I’ve ever read on Personal Finance that are absolutely life-changing. Each book has a unique way of presenting its information and some may be more applicable to your current situation than others. That is why they are listed in no particular order.
If you only read one of these, it should be The Total Money Makeover, by Dave Ramsey (AKA King of Personal Finance). However, I totally recommend that you read all of these as you have time!
“If you will live like no one else, later you can live like no one else.”
Invest in this book. It is the most comprehensive, yet simplified approach to taking control of your finances. You will learn some fool-proof ways to get out of debt, save money, and build your retirement nest egg. The book includes some super useful forms and other resources. Hands down THE best personal finance book out there.
I Will Teach You To Be Rich, by Ramit Sethi
Geared toward 20-35 year-olds. You will learn about the four pillars of personal finance and take an automated approach to each: Banking, Saving, Budgeting, and Investing. It’s a 6-week plan with actionable steps so you can get your finances in order right away!
This book is for personal finance beginners, written for people with zero financial experience or understanding. If you have a solid foundation, this book isn’t for you. If you’re a beginner, this book covers the basics well (banking, home-buying, insurance, etc.) without getting into the weeds.
The author uses a fictional “barber” to illustrate how to gain financial independence at any salary level, even a barber’s salary. A fun and, at times, funny read, focusing on saving, paying yourself first, and even touches on investing and income tax. Some will find the story line a bit cheesy, but I think it helps by keeping the content from getting too heavy.
The Millionaire Next Door, by Thomas J. Stanley & William D. Danko
This book depicts something I’ve learned first hand in my finance career–those who are truly wealthy are not flashy, but average folks like you and me. The truly wealthy do not try to keep up with the Joneses, but live somewhat frugally and below their means, hence the title, The Millionaire Next Door.
Not your typical personal finance book! It is a common-sense approach which encourages a mindful approach to money. It’s all about mindset and behaviors and planning your next move. The best part, the 5-step approach tosses the budget out the window! If that doesn’t make personal finance less sucky I don’t know what will! A fun read!
Great tips on how to save and build wealth. Put it on auto-pilot so you don’t have to think about it. If you stall, you won’t save. Automate it! You’ll learn that it’s okay to pay down debt AND save for retirement at the same time. This author also tosses the budget out the window, something I don’t necessarily agree with. A good read and good tips, nonetheless. If your savings isn’t automatic, it’s time for a change!
Written like a handbook for millennials, or anyone just starting out. It’s surprisingly easy to read. I sometimes find Suze Orman to be a bit dry and boring, but this book was definitely not. It is written in a way that keeps the reader engaged. It focuses on real problems and real solutions. Almost everyone can relate. There are many useful and practical tips, like how often you get your hair cut. The best part is on retirement savings, 401(k), IRA, and emphasizes the TIME VALUE OF MONEY! Packed with great info!
In a word, the book is Sassy. Most women will love the writing style, some may think the author tried a little to hard for the “cool factor”. I felt like a close girlfriend was speaking to me, on exactly the level I needed and in just the tone (think tough love)! A focus on goal-setting, a 12-step plan.
The author, Jessi Fearon is also the amazing blogger behind The Budget Mama. I have been secretly stalking her blog for quite a long time now. I was excited to read Jessi’s book and it was exactly what I’d hoped for and more! It is budget-focused (unlike some others mentioned above), which I agree with wholeheartedly. The title is so fitting, it really is a real life guide to living a real and very fulfilled life on a budget! (The author did not ask for this endorsement, in fact, she probably doesn’t even know my little blog exists!)
There you go, that’s 10 encouraging (and not terribly boring) books on getting your financial life in order.
Have you read any of these? Do you have other recommendations for me? I’m always excited to read new personal finance books! (Geek)