The Best Personal Finance Books For Beginners

The notion that financial security is gained only if you have a high paying job is a fallacy because finance management keeps you financially secured. However, there is no better way of educating yourself by immersing yourself in reading. While an expensive formal education might teach you the basics of finances, there are several reads that a beginner can learn to manage finances from Experts, Millionaires, or Billionaires who started from scratch and made tons of mistakes while on their journey to reach the top. Here are a few suggestions,

5 Best finance books for beginners

Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter

“What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!”. The memoir itself says a lot. This read is one of the best selling finance books. The only reason this read stands out from the rest is that Kiyosaki walks his readers through the contrasting life he experienced where his father was not so wealthy but his father’s friend happened to be one of the richest residents of Hawaii.

He sets a very realistic yet very motivating tone by saying that you can still make your way with your staggering income. Through the expressions of “Rich” and “Poor,” he emphasizes how it is not about judging your current state of finances but the preferable behavior required to have financial freedom. In a nutshell, he manages to tell his readers how important it is to get out of the rat race because being a slave to money will ruin you so the ideal way would be to work for it.

Pearls of wisdom from the book

• Skills make you rich, not theories.
• Leverage is the reason some people become rich and others do not become rich.
• A plan is a bridge to your dreams.
• The more a person seeks security, the more that person gives up control over his life.

The Total Money Makeover by Dave Ramsey

Ramsey’s all-time bestselling book has helped transform lives by getting rid of debt in the most simple and practical manner. He creates a solid foundation by simply putting down that savings are quite essential if you want to retire comfortably and be prepared for your next life emergency. The amount of myths about money has brainwashed most people to believe but  Ramsey successfully debunks the whole list of debt and money myths by sharing solid facts and examples. He sets the idea of not succumbing to social pressures and instead of learning how to prioritize your financial goals. It is much easier to achieve your total money makeover if you get rid of the mental barriers.

The Millionaire Next Door by Dr. Thomas Stanley and Dr. William Danko

The authors delved into the lives of the wealthy and through years of research, described the stereotypical notion that most of the millionaires have designer clothes, fancy cars, and giant mansions aren’t true. The reality is in fact that they acquired wealth by working hard and most importantly saving most of their money. It emphasizes mainly how you can acquire wealth even without a high paying job or degree. Hence, making the notion of high priced education redundant as for people who aren’t keen on going to college can start a small business of their own as it offers value that a college education doesn’t.

“These self-employed people are four times more likely to be millionaires than those who work for others. Of the non-retired millionaires, two-thirds of them were small business owners.”

You Are a Badass at Making Money by Jen Sincero 

 A self-help and finance book in one? Consider this book a holy grail if you are looking for ways to feel financially motivated. Jen Sincero wasn’t the best example of “Financial Success” as she was barely making enough money to scrape by up until a few years ago. But a few years later she rose to the top as a bestselling author and is now an inspiration to many.

The book revolves around mastering your money mindset no matter where you are standing financially. She emphasizes being clear about financial goals. Her past experiences make the readers rely on her advice of changing the money mindset even though it doesn’t seem easy. She believes that our behaviors play a key role in creating our financial situations. This book is candid yet humorous as you will find yourself relating to it.

 

The Richest Man in Babylon by George S. Clason

The most inspiring and powerful financial parables ever written. Even though many might consider it outdated since it was published a century ago. Much to our surprise, humans haven’t financially evolved in the longest time so this book still stands informative and relevant. So don’t let the prejudice pave in and keep you from reading this classic. Many financially experienced people have claimed that they find themselves reading this book time and again just to seek motivation.

This modern- classic book teaches timeless financial wisdom in the form of fictitious parables set in ancient Babylon. Its simplistic advice of paying yourself first, living on less than you earn, getting advice from financially competent people, and putting your money to work through cautious investing gives a jolt to people to change their money mindset.

The above books will definitely help you understand the Money game and the right mindset required to make the most out of your finance. Comment down your favorite book, we would love to see your suggestions!