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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 January 21, 2020

                      How to Develop a Millionaire Mindset in 6 Simple Steps

                      How to Develop a Millionaire Mindset in 6 Simple Steps

                      We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

                      It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

                      How do you go about developing that millionaire mindset? By following these simple steps:

                      1. Focus On What You Want – And Take It!

                      So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

                      Millionaires play to win, not to avoid defeat.

                      This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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                      2. Become Goal-Orientated

                      It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

                      Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

                      Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

                      Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

                      You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

                      If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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                      If you are to become a millionaire, you need to start accumulating money.

                      Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

                      3. Don’t Spend Your Money – Invest It

                      The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

                      Stop working for your money and make your money work for you.

                      Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

                      There’s not just the stock market — there’s also property, and your own education.

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                      4. Never Stop Learning

                      The best thing you can invest in is yourself.

                      Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

                      Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

                      Learn everything you can about how economics works, how the stocks markets work, how they trend.

                      Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

                      Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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                      5. Think Big

                      While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

                      There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

                      Aim for the stars, if you fail you’ll still be over the moon.

                      6. Enjoy the Attention

                      To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

                      Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

                      If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

                      Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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                      Featured photo credit: Austin Distel via unsplash.com

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