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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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                      Published on September 17, 2018

                      How Being Smart With Your Money Leads to Financial Success

                      How Being Smart With Your Money Leads to Financial Success

                      Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

                      With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

                      So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

                      1. Avoid being “penny wise but pound foolish”

                      It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

                      You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

                      So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

                      2. When you want something big, wait

                      Impulsivity can get you in trouble in most aspects of life. Finances are no different.

                      It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

                      We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

                      A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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                      So, you get the itch.

                      You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

                      Here’s where you have to take a step back.

                      Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

                      Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

                      It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

                      The impulse faded. And you just saved yourself a ton of money.

                      3. Live smaller than you can afford

                      You finally get that big raise. And you want to celebrate – and why not?

                      You’ve been looking forward to this forever. And after all, it was all due to your hard work.

                      That’s fine, splurge a little. However, make it a one-time deal and be done.

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                      Don’t get caught in the trap that just because you’re now making more money, you should spend more.

                      Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

                      The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

                      But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

                      4. Practice smart grocery shopping

                      Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

                      But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

                      Create a grocery budget

                      Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

                      Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

                      I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

                      Make a list… and never deviate

                      Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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                      You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

                      These impulse decisions will lead to overspending, which will derail your grocery budget.

                      Eat before going grocery shopping

                      It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

                      If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

                      After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

                      Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

                      However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

                      This makes it much easier to stick to your grocery plan.

                      5. Cancel your gym membership

                      Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

                      The average gym membership costs around $60 per month. That’s $720 a year.

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                      Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

                      I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

                      Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

                      Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

                      For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

                      Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

                      There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

                      It’s baby steps… And baby steps can start now!

                      I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

                      Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

                      The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

                      Featured photo credit: Unsplash via unsplash.com

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