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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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                                        Published on May 7, 2019

                                        How to Invest for Retirement (The Smart and Stress-Free Way)

                                        How to Invest for Retirement (The Smart and Stress-Free Way)

                                        When it comes to stocks, I bet you feel like you have no idea what you’re doing.

                                        Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.

                                        Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?

                                        You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.

                                        Here’s how to invest for retirement the smart and stress-free way:

                                        1. Know Clearly Why You Invest

                                        Odds are you already know why should invest for retirement.

                                        But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:

                                        • Will you spend more time with your family?
                                        • What does retirement mean to you?
                                        • Are you looking to launch that business you’ve been holding off for years?

                                        Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.

                                        Investing in the stock market allows you to take advantage of compound interest.[1] All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.

                                        2. Figure out When to Invest

                                        “The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb

                                        It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.

                                        The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.

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                                        A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.

                                        Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.[2]

                                        3. Evaluate Your Risk Tolerance to Create the Perfect Portfolio

                                        Investing your money well depends on your emotions.

                                        Why?

                                        Because when the market drops most people panic and withdraw their money. On average, the US stock market yields an annual 6% to 7% ROI (return on your investment.) But, this won’t happen if you’re worried about short-term loses.

                                        Before you invest your next dollar, know your risk tolerance.[3] Your risk tolerance determines the number of risky and safe investments you’d have.

                                        Regardless of your investing style, you need to view investing for retirement as a long term game. Know that some years you’ll lose money but recoup this in the long-term.

                                        Avoid watching market-related new. Also, create a double authentication to log in your investment account. This way you’re less likely to withdraw your money.

                                        4. Open a Reliable Retirement Account

                                        Depending on your circumstance, you may need to open a new brokerage account. This is the account is where you’ll invest your money.

                                        If you’re currently working for a company, odds are that they offer a 410K investing account. If so, here’s where you’ll invest most of your money. The only problem with this is that you’re limited to the stock options that are available.

                                        You do have the option to open a separate IRA (individual retirement account.) Here are some of the best brokers:

                                        1. Vanguard
                                        2. TD Ameritrade
                                        3. Charles Schwab

                                        5. Challenge Yourself to Invest Consistently

                                        Committing to invest for retirement is hard, but continuing to do so is harder.

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                                        Once you’ve started investment for your retirement, you run at risk from stopping. Often you’ll want to contribute less, so you’d have more money in your pocket.

                                        That’s why it’s important that you create a budget that allows you to invest each month. If you’re working for a company, you can set a percentage for the amount you’d like to contribute each month. Most people by default contribute 1% but aim to contribute 10% to 15%.

                                        Be the judge for how much you can afford to contribute after covering important expenses. To stay motivated, use Personal Capital to view your net worth.

                                        A benefit to contributing money to your retirement account is not taxed. For example, if you earn $100 and invest 10%, you’d contribute $10, then get taxed on the remaining $90. As of 2019, the most you’re able to contribute towards your 401K is 19K but this can change.

                                        6. Consider Where to Invest Your Money

                                        The most common way to invest your money is in stocks, but it’s not the only way. Here are other ways to invest:

                                        Robo Advisors

                                        Robo-advisors[4] are fancy algorithms that’ll choose the best investments for you. Sites like Wealthfront make it easy for first-time investors to invest their money. You’d input information about yourself and set your risk tolerance.

                                        Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors.

                                        Bonds

                                        Think of bonds as “IOUs” to whomever you buy them from.

                                        Essentially, you’re lending money and charging interest. Like stocks, not all bonds are equal. Some will be riskier than others depending on their rating.

                                        Here are the different types of bond categories:[5]

                                        1. Treasury bonds
                                        2. Government bonds
                                        3. Corporate bonds
                                        4. Foreign bonds
                                        5. Mortgage-backed bonds
                                        6. Municipal bonds

                                        Mutual Funds

                                        Picture a group of people dumping all their money in a jar that’s managed by a professional. This is how mutual funds work. The fund manager manages the money looking to earn capital gains (interest.)

                                        One of the best types of mutual funds is index funds. Since these funds don’t try to beat the market and instead follow it, they need less research. Because of this they often charge the lowest fees and yield the best long-term results.

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                                        Real Estate

                                        Yes, buying a home is an investment when done correctly.

                                        Imagine buying a home and using it as a rental property. After repairing it, you receive a monthly surplus check of $100 to $200.

                                        This may not sound like a lot, but repeat this process enough times and you’d earn a large amount of passive income. That’s why real estate is one of the best investments to not only retire but become wealthy.

                                        But, it requires a lot of money to start and you should expect losing money along the way as you learn the process.

                                        Savings Accounts

                                        Your money can still grow in a savings account. Nowadays most online banks offer a 2% annual return. Although the average inflation is higher your money will be available when you need it.

                                        7. Master Disincline to Dodge Short Success

                                        Investing for retirement is a long-term strategy. That’s why you need to master delayed gratification. All this means is delaying short-term pleasure for something bigger in the future. Research shows that those who have delayed gratification are more successful.[6]

                                        So how can you master delayed gratification?

                                        By building your discipline.

                                        Think back to what retirement means to you. A clear purpose will help you avoid withdrawing your money during a market downturn. It’ll help you contribute more towards retirement when you’d want to waste it instead.

                                        Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior. For example, after contributing more towards retirement, treat yourself to dinner.

                                        8. Aggressively Invest on This One Investment

                                        I’ve mentioned several types of investments but haven’t covered the most important one.

                                        It sounds cliche but here’s why you’re your best investment towards retirement. The more you know, the more money you’ll be able to make. The more good habits you adopt, the more secure your retirement will be.

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                                        More importantly, investing in yourself is an investment that no one can take away. There’s no market downturn nor tragic circumstance that’ll wipe your knowledge and experience.

                                        But, how can you invest yourself?

                                        Reading books, blogs, and anything that’ll help you learn new topics daily. Listen to podcasts and audiobooks on your commute to/from work.

                                        Save money to buy courses and hire coaches. I used to believe hiring coaches was a waste of money when I could learn the subject alone.

                                        But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.

                                        Retire Happy with Excess Money

                                        The key to a secure financial future doesn’t only belong to financial experts.

                                        It’s possible for you and I. What if you were able to retire earlier than most people and weren’t a financial planner? What if you were able to focus on what you enjoy doing the most while your money was working hard for you?

                                        I know this sounds impossible now, but the truth is you’re capable of taking charge of your retirement. I’m not a financial expert but I’ve learned how to invest my money by reading books and learning from others.

                                        Investing your money is scary. So start small and invest a small amount of your money with a robo-advisor. Feel your money drop and rise for a month or two. Then, invest more and keep this up until you’re aggressively saving for retirement.

                                        One day, you’ll wake up with a net worth you’re proud of – confident about your retirement. You now know a few strategies you can use to invest in your retirement. Will you take action to retire happy?

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                                        Featured photo credit: Matthew Bennett via unsplash.com

                                        Reference

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