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19 Best Finance Books That The Richest People Read

19 Best Finance Books That The Richest People Read

If you want to become one of the richest people, should you just read what they read?

Maybe.

But there’s more. Besides getting the information the wealthy are getting, more importantly, you should also learn thinking about money and prosperity like they do.

You Need These 2 Types of Finance Books:

1. The financial information in black and white, tried and true. Follow it and you’re bound to succeed.

2. Your own inside ideas and beliefs about money may need to be shifted. Without doing this, no black and white money plans will ever work for the long term or even at all.  There are books that deal with both below.

Read both types of books and you may be well on your way to be a rich.

    The Law of Divine Compensation, On Work, Money and Miracles

    by Marianne Williamson

    According to Marianne Williamson, our thoughts create our financial reality.

    “In our ability to think about something differently lies the power to make it different”.

    This is a book of work, money and miracles.

    eBook |Print |  Audiobook


      The Science of Getting Rich

      by Wallace Wattles
      This book from 1910 provided the intellectual framework for many personal wealth-building seminars.  Wallace Wattle believed that how you think about your ability to accumulate wealth is how you create wealth. If you believe that money is evil, you won’t be wealthy.

      eBook | Print | Audiobook


        The 50th Law

        by 50 Cent and Robert Greene

        Robert Greene is an American author and speaker known for his books on strategy, power and seduction. He has written four international bestsellers: The 48 Laws of Power, The Art of Seduction, The 33 Strategies of War, The 50th Law with 50 Cent.

        This book is recommended by top entrepreneur’s, with the central theme of this being fearlessness, something much needed in re-framing your thoughts about wealth, being rich, and that anyone can make it financially.

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        eBook | PrintAudiobook


          Secrets of the Millionaire Mind

          by T. Harv Eker

          This is my personal favorite. It is written by T. Harv Eker, a man that made it to the top a few times and delves into the mind and beliefs of wealthy people.

          It has strategies that are simple to follow and he offers a free, live event to learn the tools in this book. He says the change of attitude is just as important as financial education and he shows you just how to do this.

          eBook | Print | Audiobook


            How to Get Out of Debt, Stay Out of Debt & Live Prosperously

            by Jerrold Mundis

            This may be the book you want to pick first.  Many wealthy individuals live frugally at first and understand the importance of eradicating your debt. Then you can go ahead and create your wealth.

            Don’t skip this one.

            eBookPrint |  Audiobook

              Think and Grow Rich

              by Napoleon Hill

              This book was written after the 1929 great depression and took two decades of research that the author Napoleon Hill conducted.

              He was a poor journalist and interviewed over five hundred people that were successful. John D. Rockefeller, George Eastman, W. Wrigley Jr., and Charles Schwab, and more. This book is his research in the form of steps that are still relevant today.

              Books on Financial Information:

              eBookPrint |  Audiobook


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                The Automatic Millionaire

                by David Bach

                This book is a great start. It’s a common sense approach that is step by step.

                eBookPrint |  Audiobook


                  The Intelligent Investor of Practical Counsel

                  by Benjamin Graham and Jason Zweig

                  Written in 1949, Warren Buffet has turned to this book often.

                  “Chapters 8 and 20 have been the bedrock of my investing activities for more than 60 years,” he says. “I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak.”

                  eBook | Print | Audiobook


                    The Investment Answer

                    by Daniel C. Goldie, CFA, CFP and Gordon S. Murray

                    Gordon Murray teamed up with his financial adviser, Daniel Goldie after he was diagnosed with brain cancer. This is a simple guide to investing.

                    “I don’t think you can get a better unbiased approach. The guy has nothing to gain other than to give his last and best advice,” says Steve Lockshin, founder and chairman of Convergent Wealth Advisors.

                    eBook |  Print | Audiobook


                      Jim Cramer’s Get Rich Carefully

                      by James J. Cramer
                      Jim Cramer’s new book if full of research and logic.

                      eBook | Print | Audiobook


                        One Up On Wall Street

                        by Peter Lynch

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                        The Author, Peter Lynch gives you information on how he invests and uses a sensible approach.  He includes how to view important factors when making an investment choice such as how to analyze a company.

                        eBook | Print |  Audiobook


                          Screw It, Let’s Do It: Lessons In Life

                          by Richard Branson

                          “In Screw It, Let’s Do It I’ll be looking forwards to the future. A lot has changed since I founded Virgin in 1968, and I’ll explain how I intend to take my business and my ideas to the next level and the new and exciting areas – such as launching Virgin Fuels – into which Virgin is currently moving.

                          But I have also brought together all the important lessons, good advice and inspirational adages that have helped me along the road to success”.

                          eBookPrint |  Audiobook


                            The Richest Man in Babylon

                            by George S. Clason
                            George S. Clason’s parables about acquiring wealth have inspired investors since the 1920s.  He emphasizes charitable giving, and saving over spending.

                            eBookPrint | Audiobook


                              The Millionaire Fast Lane

                              by M J DeMarco

                              One of his strategies:  to use the volatility of the financial markets to get rich quickly and enjoy it now.

                              “Show me a 22-year-old who got rich investing in mutual funds. Show me the man who earned millions in three years by maximizing his 401k. Show me the young twenty-something who got rich clipping coupons. Where are these people? They don’t exist.”

                              eBook | Print | Audiobook


                                The Millionaire Next Door

                                by Thomas Stanley and William Danko

                                By an Amazon reviewer: “Every now and then very, very special book comes along with a “aha” and this is such a book. Many people are spending their way through high incomes—keeping up with the “JONESES” high profile lifestyle’s encumbered with high debt and zero savings. I worked for a millionaire one time who said “Money buys clothes, clothes don’t buy anything!” He advised us to buy our “toys” clothes, cars, vacations etc. off profits of profits and never spend principal!” That is the basic premise of this book – build profits, then enjoy them – but don’t spend principal.”

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                                eBookPrint | Audiobook


                                  Rich Dad Poor Dad

                                  by Robert T. Kiyosaki

                                  “An eighth-grade dropout who spends less than he earns is smarter than a college professor who can’t make ends meet”

                                  This book makes it to most lists on financial freedom and wealth. He says that the key to great wealth is a person’s ability to convert earned income, such as a paycheck into passive income.

                                  eBookPrint | Audiobook


                                    Spirit Driven Success

                                    by Dani Johnson
                                    This book is based on her personal experience as one of the most sought after success coaches in the world, and a self-made multi-millionaire. Inside, you’ll discover the spiritual keys that unlock the door to true wealth. You’ll also uncover the habits that lead to poverty and the lies about money.

                                    eBook | Print | Audiobook


                                      The Little Book of Common Sense Investing

                                      by John C. Bogle
                                      The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns is a 2007 book on index investing, by John C. Bogle, the founder and former CEO of the Vanguard Group.

                                      eBook | Print | Audiobook


                                        Market Wizards

                                        by Jack D. Schwager

                                        Market Wizards is a book written by Jack D. Schwager and published in 1988 in which he interviews a wide range of traders with excellent track records of profitability.

                                        eBook | Print | Audiobook

                                        You are now armed with 19 books on how to think like the rich and how to invest like they do.

                                        Here is my challenge:

                                        Read one book a week for the next 19 weeks and in less than a half a year you could be well on your way to a future of wealth, profit and freedom to live the life you desire.

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                                        Lifehack Reads is the curated collection of our favorite books, carefully categorized and sorted by our Editorial Team.

                                        10 Books That Will Change Your Life Forever 5 Books You Must Read if You Want to Be a Millionaire in Your 20’s 27 Must Read Books Every Novel Lover Should Read at Least Once 1 Minute Book Summary: 59 Seconds 2 Minutes Book Summary: How the World Sees You

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                                        Last Updated on September 2, 2020

                                        How to Set Financial Goals and Actually Meet Them

                                        How to Set Financial Goals and Actually Meet Them

                                        Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

                                        In this article, we will explore ways to set financial goals and actually meet them with ease.

                                        4 Steps to Setting Financial Goals

                                        Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

                                        1. Be Clear About the Objectives

                                        Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

                                        It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

                                        Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

                                        2. Keep Goals Realistic

                                        It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

                                        It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

                                        3. Account for Inflation

                                        Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

                                        Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

                                        For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

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                                        4. Short Term Vs Long Term

                                        Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

                                        As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

                                        By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

                                        How to Achieve Your Financial Goals

                                        Whenever we talk about chasing any financial goal, it is usually a two-step process:

                                        • Ensuring healthy savings
                                        • Making smart investments

                                        You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

                                        Ensuring Healthy Savings

                                        Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

                                        This is the focal point from where you start your journey of achieving financial goals.

                                        1. Track Expenses

                                        The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

                                        Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

                                        If you’re not sure where to start when tracking expenses, this article may be able to help.

                                        2. Pay Yourself First

                                        Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

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                                        Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

                                        The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

                                        Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

                                        3. Make a Plan and Vow to Stick With It

                                        Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

                                        Nowadays, several money management apps can help you do this automatically.

                                        At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

                                        Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

                                        You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

                                        4. Make Savings a Habit and Not a Goal

                                        In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

                                        Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

                                        • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
                                        • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
                                        • If you go shopping, always look out for coupons and see where can you get the best deal.

                                        The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

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                                        5. Talk About It

                                        Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

                                        Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

                                        6. Maintain a Journal

                                        For some people, writing helps a great deal in making sure that they achieve what they plan.

                                        If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

                                        When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

                                        Making Smart Investments

                                        Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

                                        1. Consult a Financial Advisor

                                        Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

                                        Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

                                        2. Choose Your Investment Instrument Wisely

                                        Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

                                        Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

                                        As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

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                                        3. Compounding Is the Eighth Wonder

                                        Einstein once remarked about compounding:

                                        “Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

                                        Use compound interest when setting financial goals

                                          Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

                                          Start saving early so that time is on your side to help you bear the fruits of compounding.

                                          4. Measure, Measure, Measure

                                          All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

                                          If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

                                          Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

                                          The Bottom Line

                                          Managing your extra money to achieve your short and long-term financial goals

                                          and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

                                          More Tips on Financial Goals

                                          Featured photo credit: Micheile Henderson via unsplash.com

                                          Reference

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