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10 Books To Change Your Mindset About Money Forever

10 Books To Change Your Mindset About Money Forever

Reading books on finance could help you get rich and structure your financial life appropriately. Here are some books that will be ideal for helping you invest and manage your money.

1. Your Money or Your Life by Vicky Robin and Joe Dominguez

“If you live for having it all, what you have is never enough.”

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    Many people do not set priorities on how they run their expenses. However Your money or Your Life puts the concept of time is money on a literal sense where you have to set priorities, seek passive income and pursue financial independence.

    2. I Will Teach You to be Rich by Ramit Sethi

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      “There is a limit to how much you can cut but there is no limit to how much you can earn.”

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      This book tutors people who are under 30 and making a decent living how to become masters of their money with the least amount of effort. Spending recklessly seems to be common among youths but following Sethi’s serious six-week personal finance program can put you in the right direction.

      3. The Random Walk Guide to Investing by Burton Malkiel

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        “Trust in time, rather than timing.”

        This book is not complex or filled with investing jargon. If you are a beginner and need sound financial principles on how to invest your money, this book is great for you.

        4. Financially Fearless: The LearnVest Program For Taking Control Of Your Money by Alexa Von Tobel

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          “Clearly, having money doesn’t mean you’re immune to money stress. Not for nothing did Notorious B.I.G. coin “Mo Money Mo Problems.”

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          This book is great for young people. Alexa Von Tobel, founder and CEO of Learnvest shares her experience on how she helps her clients make more meticulous planning with their finances. If you are the analytic type, “Financially Fearless” has worksheets in the book, and LearnVest’s online offerings and app.

          5. The Automatic Millionaire by David Bach

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            “Please trust me on this. Nothing will help you achieve wealth until you decide to Pay Yourself First. Nothing.”

            The system David Bach’s recommends in this book offers you an automated approach to managing your personal finances. He provides a strategic solution that makes handling your finances less cumbersome.

            6. The Paradox of Choice by Barry Schwartz

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              “Focus on what makes you happy, and do what gives meaning to your life”

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              What makes us less happy is that we are presented with so many choices. According to Barry Shwartz we are better of making a decision when we have two choices for a product rather than twenty.

              7. Why Smart People Make Big Money Mistakes (and How to Correct Them) by Gary Belsky and Thomas Gilovich

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                “Would I buy this today, at this price?” If not, you may not want to own it any longer.”

                The use of anecdotes in this book looks at the mental mistakes that cause people to spend more than they are supposed to. Reading this book will help you understand the psychological obstacles on wealth and how you can avoid them.

                8. Work Less, Live More: The Way to Semi-Retirement by Bob Clyatt

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                  Bob Clyatt in this book helps you uncover how you can retire from your job before the traditional retirement age of 65. He suggests techniques such as living on less, putting your investment on autopilot, and more.

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                  9. How to Get Out of Debt, Stay Out of Debt, and Live Prosperously by Jerrold Mundis

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                    “Do what you can, with what you have.”

                    The book centers on the principles of Debtors Anonymous. Real stories from real people are contained in this book on how you can win against the horror of being in compulsive debt.

                    10. You’re So Money: Live Rich, Even When You’re Not by Farnoosh Torabi

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                      “Splurge when it makes sense.”

                      Farnoosh explains how you can spend money without going into debt or draining the bank. She suggests how you can make extra income or find ways to balance your account even you have spent more money than you should have done.

                      Featured photo credit: www.giveagradago.com via projectrenaissance.com

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                      Casey Imafidon

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                      Published on September 17, 2018

                      How Being Smart With Your Money Leads to Financial Success

                      How Being Smart With Your Money Leads to Financial Success

                      Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

                      With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

                      So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

                      1. Avoid being “penny wise but pound foolish”

                      It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

                      You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

                      So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

                      2. When you want something big, wait

                      Impulsivity can get you in trouble in most aspects of life. Finances are no different.

                      It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

                      We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

                      A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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                      So, you get the itch.

                      You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

                      Here’s where you have to take a step back.

                      Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

                      Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

                      It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

                      The impulse faded. And you just saved yourself a ton of money.

                      3. Live smaller than you can afford

                      You finally get that big raise. And you want to celebrate – and why not?

                      You’ve been looking forward to this forever. And after all, it was all due to your hard work.

                      That’s fine, splurge a little. However, make it a one-time deal and be done.

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                      Don’t get caught in the trap that just because you’re now making more money, you should spend more.

                      Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

                      The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

                      But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

                      4. Practice smart grocery shopping

                      Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

                      But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

                      Create a grocery budget

                      Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

                      Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

                      I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

                      Make a list… and never deviate

                      Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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                      You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

                      These impulse decisions will lead to overspending, which will derail your grocery budget.

                      Eat before going grocery shopping

                      It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

                      If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

                      After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

                      Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

                      However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

                      This makes it much easier to stick to your grocery plan.

                      5. Cancel your gym membership

                      Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

                      The average gym membership costs around $60 per month. That’s $720 a year.

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                      Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

                      I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

                      Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

                      Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

                      For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

                      Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

                      There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

                      It’s baby steps… And baby steps can start now!

                      I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

                      Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

                      The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

                      Featured photo credit: Unsplash via unsplash.com

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