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How Not to Be Broke—10 Powerful Books to Learn about Money Management

How Not to Be Broke—10 Powerful Books to Learn about Money Management

Want to stop being broke?

One of the most common habits that all successful people have in common is that they read books.  They’re continually learning, studying and implementing new strategies to better manage their money.  They understand that it isn’t necessarily about how much you make, it’s about what you get to keep.  That’s where proper money management comes in.

Here are 10 powerful books that will help you learn more about money management.  If managing your money is a weak point for you, then you may want to consider picking up one of these books.

1. Rich Dad, Poor Dad by Robert Kiyosaki

rich dad, poor dad book

    This is a popular finance book that shares the powerful lessons learned from Robert Kiyosaki’s Rich Dad and Poor Dad.  Growing up, Robert’s “Poor Dad” preached for him to “get a good education, get a good job and save your money”.  While this may appear to be good advice, Robert realized that this advice would never get him rich.  Instead, Robert’s “Rich Dad” would give him much different advice, such as “start a business, make passive income and invest effectively”.  This easy to understand book will give you a new way of thinking about managing your money.

    2. The Richest Man In Babylon by George Clason

     

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    richest man in babylon

      A classic by George Clason, this book shares nuggets of wisdom that has been around for nearly 100 years.  Some of the basic money management rules come from this short book, such as “Pay yourself first” and “Use the power of compound interest.”

      3. The Millionaire Next Door by Stanley and Danko

      the millionaire next door

        What do all millionaires have in common?  In this book, the authors interview and survey a variety of millionaires to discover the common traits amongst them.  Living below your means, budgeting your money and managing it effectively are core concepts that you will learn in this book.

        4. Secrets Of The Millionaire Mind by T. Harv Eker

        secrets of the millionaire mind

          This book will help reveal your “money blueprint”.  T. Harv Eker shares how your beliefs and associations with money determine your financial destiny.  While your psychology is extremely important when it comes to managing money, it also goes into a practical formula for how to allocate your money earned every month.

          5. The Total Money Makeover by Dave Ramsey

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          total money makeover

            If you are currently struggling with debt, then this is a fantastic book to start with.  Dave Ramsey not only accumulated over $4 million dollars by his mid twenties, but managed to lose it all through bankruptcy.  He’s now developed his own successful approach to getting out of debt and managing your money, which he shares in this book.

            6. Your Money Of Your Life by Dominguez and Robin

            your money or your life

              This classic money management book preaches the power of simplicity.  Simplifying your lifestyle to lower your expenses is a crucial element of being able to live below your means.  The authors also go into developing passive income streams so that you can have your money working for you, becoming financially free.

              7. The Money Book For The Young, Fabulous & Broke by Suze Orman

              the money book for the young, fabulous and broke

                One of the most trusted money experts in America, Suze Orman, shares her money principles for getting out of credit card debt, school loans, improving your credit score, buying a home, insurance, and much more.  This book covers all of the important money management strategies that all young people should know.

                8. The Wealthy Barber by David Chilton

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                the wealthy barber

                  This entertaining book provides some useful money management advice in the guise of a novel.  It shares the story of a group of friends that visit a barber shop once a month and receive powerful advice on managing their money from their “Wealthy Barber”.  The book covers the popular advice of “pay yourself first” and “compound interest”.

                  9. The Automatic Millionaire by David Bach

                  the automatic millionaire

                    David Bach shares his proven, automatic plan for becoming a millionaire in your lifetime.  David’s simple strategies, such as his “latte factor”, will help anyone be able to cut back on expenses, manage their money effectively, and invest for financial freedom.

                    10. Get Rich Carefully by Jim Cramer

                    get rich carefully

                      The host of CNBC’s Mad Money reveals his strategies to high yield, low risk investing in this powerful guide.  Jim understands that in today’s economy, most people can’t take big risks with their money.  That’s why this book is jam-packed full of practical, invaluable wisdom for turning your savings into lasting wealth.

                      By reading a few of these money management books, you will soon realize that managing your money is fairly straightforward and simple.  Many of these books provide the same concepts and strategies.  Why?  Simply because they work.

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                      Managing your money isn’t rocket science.  It may seem intimidating at first, but once you get in the habit of managing your money effectively, it will change your financial future.  You will have a sense of “control” over your money and it will greatly boost your self-esteem.

                      What money management books have you read?

                      Are there any that you’d recommend that are worth reading?  Leave a comment below.

                      Featured photo credit: Money Book via s3.amazonaws.com

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                      Last Updated on June 26, 2020

                      25 Easy Tips on How to Save Money Fast

                      25 Easy Tips on How to Save Money Fast

                      “How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

                      If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

                      You don’t really need to order in food. You don’t really need to buy expensive perfume.

                      Building from that, you can work out how your regular expenses can be reduced.

                      As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

                      And remember: a budgeted lifestyle does not mean a bad or boring one!

                      But first, understand what budget you can cut down on daily:

                      • Regular expenses for the average adult (can be trimmed but not eliminated):
                        • food
                        • rent/mortgage
                        • cell phone
                        • insurance
                        • socializing/entertainment
                        • transportation
                        • hygiene products
                        • household bills
                      • Irregular expenses for the average adult (can be eliminated or cut down a lot):
                        • travel
                        • clothing
                        • medication (*depends)
                        • grooming (hair, nails etc.)
                        • gifts

                      Now, let’s dive right into the 25 ways to save money fast:

                      Save Money on Food

                      1. Bring a stock of food to the office/work

                      Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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                      Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

                      2. Buy the store-brand version

                      Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

                      3. Eat cheaper cuts of meat

                      Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

                      4. Have group dinners

                      If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

                      Save Money in Transport

                      5. Get a bicycle

                      Save on gas money and bus/metro fares with this underrated mode of transport.

                      6. Use public transport and/or don’t get taxis

                      Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

                      7. Find the cheapest gas

                      Regularly check out where the cheapest gas can be bought.

                      Save Money in General Shopping

                      8. Shop online

                      Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

                      9. Sell your old stuff

                      Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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                      Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

                      10. Bulk buying stores

                      For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

                      Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

                      11. Become a flea market/car boot sale/street market guru

                      You can find original gifts and develop good negotiation skills at these places.

                      12. Generic brand medication

                      More often than not, the generic version of paracetamol and other basics work the same as the branded version.

                      13. Choose deodorant, not perfume

                      It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

                      Cut Down on Household Expenses

                      14. Printing

                      Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

                      e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

                      Expand the margins of what you are printing as often as you can to save on paper.

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                      15. Minimize SMS and phone calls

                      A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

                      16. Shop around for insurance

                      Most people don’t spend enough time searching for the best insurance deal.

                      Keep a watchful eye out for deals and new competitors in the market.

                      17. Try re-negotiating your rent/mortgage

                      If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

                      18. Don’t get a TV

                      Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

                      19. Pool your internet bill with a neighbour

                      My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

                      Save Money in Socializing, Entertainment And Travel

                      20. Have house parties

                      Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

                      For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

                      21. Open festivals, meetups and events

                      It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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                      22. Volunteer

                      If you can’t pay for a ticket, volunteer and get to be there anyway.

                      23. Housesit

                      There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

                      Save Money on Hygiene and Beauty

                      24. DIY beauty

                      French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

                      25. Fewer haircuts/volunteer at a trainee hairdresser

                      If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

                      Bonus: Effective Money-Saving Tips for Everything

                      Here’s a summary of what you can generally do to save more money:

                      • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
                      • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
                      • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
                      • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
                      • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
                      • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
                      • Stop and think. Do I really need it?

                      Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

                      What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

                      Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

                      More Tips for Personal Finance Management

                      Featured photo credit: Unsplash via unsplash.com

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