Everyone makes money, one way or another. But not everyone is managing it properly. If people could manage it effectively, then they wouldn't have as many money-centric issues.
Why are lottery winners bad at keeping their money? In most cases, lottery winners end up living their old lives after 'blowing' all their winnings. They've been provided with an ample amount of resources, but they don’t know how to manage them.
Having a lot of money doesn’t guarantee you financial independence. To try and achieve that, you need to purposefully invest your time and effort. Similarly, to deal with the financial issues of regular life, you need to regularly read and study books on financial literacy. You need to educate yourself first, and then implement what you have learned.
Working as a top executive doesn’t necessarily mean you’ve enough financial education. Rather, it could mean you’re actually leading a more (financially) miserable life. You’re constantly battling unbearable pressures, and in return, you’re earning far less than your time and effort is worth.
True independence is far away from your daily life. Creating wealth could be your solution to freedom. If you’re focusing on creating wealth, you would be making money while you sleep, or on vacation, or whatever you’re involved in- money will be generating in abundance.
If you’re looking for how to create wealth, how not to become a slave to money, how to retire early or similar kinds of queries, then you’re reading the right blog.
Below, we’ve listed the top books on financial literacy that you should read to begin a better, financially sound life.
Author: Daniel J. Mendelson
"If you don't fully understand your student loans or already have a purposeful strategy for repayment, reading books on financial literacy like this one will likely save you thousands of dollars and put you in a better lifelong financial position.
This book goes further than just explaining the student loans and tackling repayment strategies and even talks about the difference between retirement accounts such as a 401k, IRA, Roth IRA, etc.
In that sense, it's almost like a beginner’s guide to personal finance, which would benefit everyone.
Author: Trent Hamm
"Your Everyday Guide to Saving Money was a great little book with lots of tips, and I always appreciate hearing about more ways to save money.
The book is organized by category like appliances, clothing, clutter, vacations, and so on. So if one doesn't interest you, you can move on to another section.
Some of my favorite tips include: plant shade trees, start a natural collection (my matchbook collection as a child comes to mind), teach yourself a new skill, and read more.
Since I have picked up many tips over the years from books on financial literacy, it can be hard to find suggestions I haven't already tried or read about, and some of the information served as reminders for me to continue.
I like the portable size of this book and the sections that you can read waiting in line. Of course, I got the book at the library, so good luck with your book sales." https://www.goodreads.com/book/show/6012010-365-ways-to-live-cheap
Author: John C. Bogle
"Bogle primarily focuses on index funds and how to change one's thinking about investing vs. speculation, diversification, investment costs, the tendency to revert to the mean, and how financial markets work.
Bogle begins the book with a parable featuring the "Gotricks family." The family initially invested in every company (like an index fund).
Still, members started trading individual stocks, paying fees to brokers, consultants, and fund managers, all in a bid to beat one another. The more they did, the less return on investment they got.
Moral of the story? Do away with intermediaries and invest passively.
He also offers several arguments as to why one should pick index funds over actively managed funds, offering concise and easy-to-understand data that backs up his point.
As someone who has never been exposed to the world of investing, I found Bogle's argument to be compelling and simple to understand."
Author: David Carlson
"A book that genuinely enables you to get more from your side hustle.
Dave is one of the foremost experts on the side hustle, and this book gets you motivated to take action on how to get involved in one.
While he will not pretend it's easy, there's plenty of options out there if you're willing to take action.
A great introduction and excellent to read Dave's experiences!" https://www.goodreads.com/book/show/26779943-hustle-away-debt
Author: Suze Orman
"No matter what you think of Suze Orman, you don't know how great she is until you read one of her money books.
Every college graduate should read this one. It begins on the basic side with FICO scores and credit cards/bills and progresses into first-time home buying and such.
I, unfortunately, did not read it until I had been out of college for a while, but I have found it to be immensely helpful. Orman's advice is practical, easy to take action on, and is laid out in an easy-to-understand, simple way in this book.
Hopefully, high schools will get it together sometime soon to teach financial skills while kids are still in high school and before they get themselves into credit card debt and other financial trouble.
Deep financial debt is, in my opinion, an unnecessary epidemic that is not being properly addressed at an early enough age for most.
Kids also need to know the difference between "good" debt (like educational loans) and "bad" debt (like credit card abuse); this is something that Orman addresses in detail in this book, among many other things." https://www.goodreads.com/book/show/127277.The_Money_Book_for_the_Young_Fabulous_Broke
Author: Robert Charlton, Robin Charlton
"This book outlines many of the same principles as other guidelines to saving for early retirement, but with the added benefit of seeing the authors' actual numbers for salaries, investments, debts, and outcomes.
I especially appreciated their description of saving in both tax-advantaged and taxed accounts and the benefits and drawbacks of each. If you are wanting to learn more about investing and saving for retirement, this book is helpful!" https://www.goodreads.com/book/show/17936546-how-to-retire-early
Author: Ramit Sethi
"In one chapter, this book briefly describes a girl that spends $5,000/year on shoes. Since it's a book on being rich, I figured she *must* be rich to waste that much money on shoes.
But no, her annual income is about half mine. She can do this because she decided that "$5,000/year on shoes" was her definition of "rich" and oriented her life around that decision.
That's all this book is: deciding for yourself what it means to be rich and acting on it. Everything's broken down into the simplest possible steps.
Even if you're the laziest person on the planet, taking one action/day will put you on the path to a wealthy retirement in about six weeks.
Many numbers are used to illustrate the difference between not taking action, taking some action, and taking maximum action. Some of these differences are measured in hundreds of thousands of dollars." https://www.goodreads.com/review/show/58573553
Author: Michael Zisa
"The title is misleading because this book is great for all ages.
Some parts were difficult to understand, but the author makes a solid attempt to repeat and break down investing using mini-stories and down-to-earth terms.
He gives it to you from a "analyze the risks" perspective. He shows what the math looks like (in easy math expressions). I recommend this book if you want to know how to minimize risks and be a smart investor." https://www.amazon.ca/Early-Investor-Adults-Become-Wealthy/dp/1492105007
Author: Steve Burkholder
"Read this book to prepare to teach personal finance at the high school level. It is a simple read about the complexities of helping people to understand the world of banking and money.
He uses easy-to-understand terms that help teens know how to use their money intelligently, save for emergencies, and prepare to save for the future.
Young adults and older adults would benefit from using this system of thought about money. Read it and decide for yourself."
Author: Bola Sokunbi
"This year, I committed myself and my husband to become more aware of my finances and increase wealth. I have always been scared of money and thought building wealth was only for millionaires.
This book made a big scary concept, MONEY, not seem so bad after all. Each chapter is broken down into a money topic (budgeting, debt, investing, credit, etc.) and gives you clear action items to tackle each topic.
This book made me feel empowered to have an action plan and see where I can improve. Enjoyed this!" https://www.goodreads.com/en/book/show/43119517-clever-girl-finance#other_reviews
Author: Jen Sincero
"I suggested my coworker buy this for the library. Then I borrowed it from the library and read it. After my first reading, I went ahead and bought myself a copy.
Yeah, it's a little woo-woo, but I think she grounds that a little more than some other people do. If you want to make more money, you have to get into the right mindset. This book helps you do that.
It's the exercises that I didn't do. Now that I have my copy, I have no excuse not to sit down and do them with paper and a pen and everything. (Though I did write $100,000 on my bathroom mirror. So that's something, right?)" https://www.goodreads.com/book/show/30900534-you-are-a-badass-at-making-money
Writers have done wonderful work to depict many, many insights to lead a better, financially independent, life. Few people excel at it and most people struggle to manage their money/ wealth. Why? The simple answer is that they’re reading these books but are reluctant to apply the instructions in their day-to-day lives. What’s the point of reading book after book and never following what they reccommend? It's just a waste of time.
Chances are that you have already read one of the books from the list. Don’t forget to share your experience with us. How has the book impacted your life?