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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 March 4, 2019

                      How to Use Credit Cards While Staying Out of Debt

                      How to Use Credit Cards While Staying Out of Debt

                      Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

                      I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

                      Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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                      Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

                      Do Not Treat Credit Cards as Your Funding Sources

                      Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

                      I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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                      I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

                      If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

                      Make Sure to Always Pay Off Balances in Full Each Month

                      The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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                      Using Credit Cards with Rewards

                      Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

                      You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

                      I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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                      So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

                      What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

                      Featured photo credit: Artem Bali via unsplash.com

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