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20 Best Personal Finance Books You Should Read Now

20 Best Personal Finance Books You Should Read Now

When we talk about understanding how to manage money, personal finance is one of the most essential skills you can learn. But without any guidance, it is difficult for us to understand the value of handling our money and using it to make even more. However, if you walk into any book store or library, you’ll find there a plenty of guides out there, in the form of personal finance books offering advice on financial planning. But all advices are not equal. To begin, you need some easy-to-read books that will explain you the basics of financing, the best way to save money, and how to pay off your loans.

Here’s a list of books that will help you in getting out of the sneak and rat race of debt and achieve the treasure that you truly deserve.

    The Millionaire Next Door

    by Thomas J. Stanley and William D. Danko

    The Millionaire Next Door is great for all those people who have just come into the game of personal financing, because this book talks about the fundamentals of personal finance with simple, consistent instructions .This book will help you in developing good practices from the very beginning.

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      The Investment Answer

      by Daniel Goldie and Gordon Murray
      In this book, Goldie and Murray pointed out a general guide to capitalizing by concentrating on five basic decisions every investor has to make. This brief, easy-to-read book is the most approachable investing book I’ve read.

      Print | eBook | Audiobook


        Psych Yourself Rich

        by Farnoosh Torabi
        In this book, you’ll learn about the relationship between you and the money. Farnoosh has beautifully explained how our “emotions influence when managing personal finances.” Precisely, this book will bring back you to the concept of behavioral finance and how you can discover your weaknesses and get the most out of your strengths to make structure and maintaining money as stress free and as organized as possible!

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          The Millionaire Mind

          by Thomas J. Stanley
          The Millionaire Mind aims a millions of people who have stored considerable wealth and live in ways that flexibly exhibit their prosperity. The writer reveals the surprising answers to some difficult personal finance questions, presenting them to readers through solid examples.

          Print | eBook


            I Will Teach You To Be Rich

            by Ramit Sethi

            In a friendly, naughty style, Sethi put down a serious six-week personal finance program for those who want to master their finance management with minimum effort. This book is so comprehensive that you feel like you’ve been to a long seminar with an outstanding expert after reading it.

            Print | eBook | Audiobook


              The Automatic Millionaire

              by David Bach

              This book highlights the influence of money by introducing the well-known Latte Factor. The author would make you understand the amount of your money goes to waste, realizing how better you can manage it by making the right selections in spending your money. This book will also help you in identifying where you unconsciously use your money and how those little expenses can be used to make you financially strong.

              Print | eBook


                Women & Money

                by Suze Orman
                Every woman in the world should read this book which is designed specially to empower women. Suze wrote this to help women, face their financial challenges and to make women financially strong. So, if you are a woman then you should read this informative book, which’ll guide you on how you must take care of your finances.

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                Print | eBook


                  You’re So Money

                  by Farnoosh Torabi
                  Aninstructive and realistic finance book which concisely tackles the issues college students are mostly likely to face in handling their own finances. Torabi explains readers how to survive without draining the bank and where to find easy places to save money.

                  Print | eBook


                    Thinking, Fast and Slow

                    by Daniel Kahneman
                    Managing personal finance is a series of decisions and this book,Thinking, Fast and Slow,drives support for the readers by understanding what pushes them to make the decision.

                    Print | eBook


                      Debt-Free by 30

                      by Jason Anthony and Karl Cluck
                      Debt-Free By 30 enlightens the basics of arranging your debt, discovering ways for extra money to repay the debt faster. In this book, readers can cheer up and can learn about credit, health insurance, financing a car and expenses.

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                        The Total Money Makeover

                        by Dave Ramsey
                        It is an incredible book to start with. It is a complete guide to saving fund, starting to invest, getting out of a mortgage, saving for a rainy day, paying off your debt and reaching financial prosperity in your life.

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                          Your Money Or Your Life

                          by Joe Dominguez and Vicki Robin

                          In this era of huge economic ambiguity when everyone is worried about their money and how they spend it, this bestselling book is an essential read. It tells the reader how to pay off debt and cultivate savings, rearrange priorities, solving inner encounters between values and lifestyle, and lot more.

                          Print | eBook


                            The Money Book for the Young

                            by Suze Orman
                            This book again by Suze, Tackle financial problems like student loans, debt, student loan, credit card, debt, and insurance. It communicates straight to people requiring help to deal with finance issues and financial plan for the first time.

                            Print | eBook | Audiobook


                              Beating The Street

                              by Peter Lynch
                              In the book Beating The Street, Peter Lynch describes how to become an expert in handling finance of a company and ways to build a profitable investment portfolio based on your own experience and insights.

                              Print | eBook


                                The Psychology of Investing

                                by John Nofsinger
                                A professor of finance, Nofsinger investigates into the behaviors, psychology influence investors, providing a complete summary on making smart investing decisions for those, who are keen to start their own business.

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                                  7 Money Rules for Life

                                  by Mary Hunt
                                  Mary Hunt is not new to budgeting and personal finance. Although to many she has a background of home economist than an investment guru. This book 7 Money Rules of Life steps out a bit of her old-style comfort zone to comprise lots of facts about financing, retiring, investing and preparation for your financial future.

                                  Print | eBook | Audiobook


                                    Rich Dad Poor Dad

                                    by Robert T. Kiyosaki
                                    This book is an investment classic, and is very informative, worth a read by anybody trying to find firm grip financially. Always keep this book on your shelf.

                                    Print | eBook


                                      The Money Saving Mom’s Budget

                                      by Crystal Paine
                                      Money Saving Mom is one of the best home economists’ book. This book is full of clear guides to getting your family’s financial plan in hand so that you can live the life you want to live.

                                      Print | eBook


                                        The Behavior Gap

                                        by Carl Richards
                                        In this book, Richards centers the senseless mistakes people make again and again financially, buying expensive because of others, buying things that aren’t important — and explains how our natural characters lead us off the track even knowing what is correct.

                                        Print | eBook | Audiobook


                                          The Richest Man in Babylon

                                          by George S. Clason
                                          This Book is read by millions, this precious book embraces the key to success-in the mysteries of the ancients. Constructed on the famous “Babylonian principles”, this bestseller book offers a thoughtful solution to personal finance problems; enlightening the mysteries to saving money, protecting money and earn more money.

                                          Print | eBook | Audiobook


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                                          Last Updated on July 10, 2020

                                          The Definitive Guide to Get out of Debt Fast (and Forever)

                                          The Definitive Guide to Get out of Debt Fast (and Forever)

                                          Debt can feel crushing, like a weight that is always weighing you down. Looking at those numbers, it can feel as if you’ll never get out from under it. However, if you really want to learn how to get out of debt, it is possible with a great deal of focus and self-control.

                                          Getting out of debt isn’t impossible. Like any big goal, all that it takes is an action plan to identify where you are and creating a plan to zero out your debt.

                                          Identifying All of Your Debts

                                          The first part of paying off your debt is getting a complete picture of what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.

                                          Here’s how you can get started identifying your debts:

                                          1. Own Your Debt

                                          Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of it.

                                          Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first, but you must own it.

                                          2. Make a Debt Tracker

                                          It’s astonishing how few people ever created a tracker to understand their total debts. Most likely, it comes from not wanting to accept the guilt of having debt, but, if avoided, it can make it nearly impossible to get out of debt.

                                          Open up a new Google or Microsoft Excel sheet and list out all of your debts. Start with the name of the creditor, interest rates, total balance, loan term length (if any), and the minimum amount due each payment. This will include student loans, credit cards, and any other type of debt owed.

                                          3. Get Your Debt Number

                                          Once you’ve made your debt tracker and taken the other steps, identify your total payoff number. This is crucial, as you will have a starting point and a clear goal that you are trying to achieve.

                                          Prioritizing Your Debts

                                          All debt is not created equal. It’s imperative to understand that there are different types of debt.

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                                          1. Understand Bad and Good Debts

                                          Bad debts are usually paying for things you want instead of always need. While there might be some emergencies that max out your credit cards, often times it’s excessive spending[1].

                                          There are three main types of bad debt:

                                          • Credit Card Debt: The average American household owes over $16,000 in credit card debt!
                                          • Auto Loan Debt: According to CNBC , the average auto loan in the US is $30,032!
                                          • Consumer Loan Debt: Consumer loan debt isn’t as common as credit card and auto loan debt, but it’s still considered bad as interest rates are usually between 10-28%.

                                          Good debt is identified as investments in your future. Here are three common types of good debt:

                                          • Student Loan Debt
                                          • Mortgage Loan
                                          • Business Loans

                                          2. Decide Which Debt to Pay off First

                                          Once you know each type of debt and their interest rates, you can begin to pay off debt quickly.

                                          Focus on paying off bad debt first, regardless of if it is a credit card or auto loan. Start by paying off the loan with the highest interest rate first.

                                          If you have several credit cards with different interest rates, you want to focus on the one with a higher APR. You will actually save more money by eliminating the card with the highest interest rate.

                                          3. Don’t Pay the Minimum Amount

                                          Paying the minimum amount digs you into a hole as interest rates will offset your payment. Even a small amount more than the minimum can help you pay off debt much faster.

                                          Removing Obstacles to Pay off Debt Quickly

                                          Creating a debt tracker and prioritizing a plan is simple, but avoiding temptation can be difficult.

                                          1. Set a Reminder to Track Your Debt

                                          “If you can’t measure it you can’t manage it.” -Peter Drucker

                                          It’s so important to track your debt to ensure that you get it paid off quickly. Similar to working out and measuring your results, you need to track your debt constantly. Start with a weekly reminder, where you sign on and log your updated number. Did you increase, decrease, or stay the same?

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                                          Regularly tracking your student loan balance can be incredibly motivating, as well. You will get a huge confidence boost each time you see your total debt amount decreases.

                                          Set weekly and monthly goals so you can have short term wins and keep the momentum going.

                                          2. Hide Your Credit Cards

                                          If your biggest debt is credit cards, you need to eliminate temptation and remove them from your wallet.

                                          Some people have gone to extreme measures by freezing their credit cards. Why? This would create an ice block around your card, which would require you to chip away at it slowly. This will give you time to think if it’s the best idea to buy that thing you’re about to buy.

                                          3. Automate Everything

                                          Willpower can be a huge downfall to paying off your debt. By automating your bills each month, you will ensure that willpower isn’t involved.

                                          4. Plan Ahead

                                          Getting out of debt will require some sacrifices, but with enough planning, you can make it work.

                                          For example, if you know that you have a friend’s birthday or family dinner coming up, plan ahead for the costs. Whether you need to cut back on spending the week before, pick up a side job, or meet them after dinner, do what is needed.

                                          5. Live Cheaply

                                          The only way to get out of debt is to make some sacrifices on your spending habits. Find ways to save money each month so you can apply that amount to your outstanding debts. Here are some ways to save money each month:

                                          • Live with roommates
                                          • Cook dinners and prepare lunches for work instead of eating out
                                          • Cut cable and choose Netflix or Amazon Prime
                                          • Take public transit or bike to work

                                          Finding the Lowest Interest Rates

                                          The higher your interest rates, the harder (and longer) it will take you to pay off any debt.

                                          If possible, you want to find ways to lower your interest rates to help get out of debt quickly. Here’s how you can get started:

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                                          1. Maintain a High Credit Score

                                          Your credit score will have a large impact on your ability to refinance your loans and receive a lower interest rate. If you have a low credit score, it’s unlikely you will be able to refinance your loans. Use these credit tips to increase and maintain an excellent score:

                                          • Never miss a payment
                                          • Don’t exceed 30% of your credit limit
                                          • Don’t sign up for more than one card at once
                                          • Limit hard inquires, like auto-loans and new credit cards
                                          • Monitor frequently with free credit-tracking software

                                          2. Find Balance Transfer Offers

                                          Start by opening a free account on credit.com. Credit.com offers you the chance to open a free account and see what type of balance transfer offers you can receive. Some of your existing credit cards might already have 0% or lower APR balance transfer offers available.

                                          Contact each of your credit card providers to ask about lowering your rate for a one-time balance transfer offer[2].

                                          If you do take advantage of this option, make sure that you use a balance transfer and not a cash advance. Cash advances have a ton of high interest fees (15-25%, depending on your credit card) and will only compound your debt problem.

                                          How to Get Rid of Debt Forever

                                          Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.

                                          1. Keep Monitoring and Adjusting

                                          Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.

                                          Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.

                                          2. Earn More Money

                                          There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!

                                          Think about it…it is much easier to find ways to earn an extra $1,000 per month than find $1,000 to cut from your budget.

                                          Here are some examples of ways to earn more money:

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                                          Talk to Your Boss

                                          Have a conversation with your boss about current salary and/or commission rates. If you’re not satisfied or want a change, don’t be afraid to look around at other positions. Some of them might even have a student loan debt reimbursement plan!

                                          Start a Side Hustle

                                          This could be coaching students on the weekends, driving for Uber, or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.

                                          Build an Online Business

                                          There are so many websites and blogs that earn money from ads, affiliates, and other online products. Find your niche and get started.

                                          3. Celebrate Your Wins

                                          As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.

                                          While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.

                                          4. Set New Financial Goals

                                          Eventually, with a plan and these steps, you can rid yourself of your debt. Once you do, make sure to celebrate your monumental achievement, but don’t stop there.

                                          Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.

                                          These could be anything now that you are debt free! Think about where you want to travel, buying your first home, or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.

                                          Conclusion

                                          Congrats, you can now set a plan in motion to finally pay off your debt quickly (and hopefully forever)!

                                          Remember, if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.

                                          More Tips on Getting out of Debt

                                          Featured photo credit: Pepi Stojanovski via unsplash.com

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