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

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

Let’s face it: only few people in the world actually know how to manage money. We think we know how to do it, but if we actually did, banks wouldn’t have created credit cards. I was curious to know more about the things that matter in life, and given that money can enhance how we experience our lives, I started reading books related to money management. The following 10 books are certainly worth reading before you pick up your next novel.

Let’s take a look at these 10 books.

1. The Richest Man in Babylon by George S. Clason

    This is undoubtedly a book that will make you re-think what you do with each coin you earn. If you make a small investment in this book and apply each of the “6 laws of wealth,” it will take you down the road to financial success.

    This book takes place in Ancient Babylon. You may think, “What? A money-management book about Babylon?” Well, it turns out that Babylon was one of the richest civilizations that has existed.

    If you have ever read or listened to Jim Rohn, he mentions that this book was a great part of him becoming millionaire. Jim Rohn also has an awesome book that you will see as part of these top 10.

    So, what can you expect of this book? You will learn to keep more of what you earn, earn from your savings, get out of debt, invest wisely, earn more, and keep your fortune safe.

    2. Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom by Robert T. Kiyosaki

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      This is a classic, and it blew my mind when I was in high school. I read the Spanish translation of course, and I’ve read it again in English, and it just doesn’t stop making sense. Now, you will find this book very easy to read and you may get lost in the story and forget to take in the great message.

      Robert Kiyosaki is famous for his book Rich Dad Poor Dad in which he talks about two people giving him different advice. One of them advises him on entrepreneurship and how to be financially independent, and another one teaches him how stay financially safe.

      In this book, he expands on the rich dad’s advice to become financially independent, touching on the difference between being a business-owner and being self-employment, and how to accelerate the cash flow to breakthrough to financial independence.

      This is a highly recommended book for those looking to start a business or thinking of investing their money wisely.

      3. Think and Grow Rich by Napoleon Hill

        I read this book when I was starting up my business. It was one of the best books I’ve ever read. This book provides research on over 40 millionaires and how they got there. I’ve read this book twice simply because, as with anything else in life, what this book teaches is a process.

        Think and Grow Rich will lay out for you the steps to becoming a millionaire. Now, I should say this: it is not easy at all. If it was easy, everybody who read this book would be rich. It takes consistency and hard work, but reading this book is the first step.

        4. 7 Strategies for Wealth & Happiness: Power Ideas from America’s Foremost Business Philosopher by Jim Rohn

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          If you’ve never heard of Jim Rohn, it’s probably because he hasn’t been involved in entrepreneurship much lately. Well, Jim Rohn was a great public speaker, motivator and the mentor of Tony Robbins. He is a self-made millionaire who, after being broke, put all he had into making himself rich and happy.

          In this book, Jim Rohn shows the steps you need to take to live a better life—not just financially. This book will teach you how to set goals, seek the right path for yourself, seek knowledge and finally, control your finances the right way.

          This book is a great, all-around opportunity for life improvement. See, life is not all about money; money just enhances life, and that’s why you must learn how to manage it properly. Your personal improvement is what will take you to where you want to be.

          5. The Compound Effect by Darren Hardy

            Just like Tony Robbins, Darren Hardy mentions Jim Rohn as a mentor. Given that Jim Rohn (cited above) wrote one of the best books regarding money management and life, I don’t wonder how Darren Hardy came up with this great success-related book full of easy, small hacks that will get your life on the right path to wealth and improvement.

            If you are looking for a grounded opinion on how to manage money and achieve success, this is the right book for you.

            6. 925 Ideas to Help You Save Money, Get Out of Debt and Retire A Millionaire: So You Can Leave Your Mark on the World by Devin Thorpe

              There is a saying that you shouldn’t judge a book by its cover. Well, this what I did with this one, and it was well-worth the judgement.

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              This is a great book full of easy-to-follow ideas that you can really get to work. It has great tips, like coming to an understanding with your family regarding money matters, teaching your kids how to use it properly, etc.

              This is a great book for those with families (like me). It’s definitely worth the read.

              7. The One Week Budget: Learn to Create Your Money Management System in 7 Days or Less! by Tiffany The Budgetnista Aliche

                OK, this one is a real taking-action book. It shows you how, in seven days, you can get things out of the way and get onto the road of money management. This will take you by the hand on getting things done.

                This is not a good read—it’s a good money-management manual. If you want to start from anywhere, start from here.

                8. How to Manage Your Money When You Don’t Have Any by Erik Wecks

                  All the books up to number 5 were about how to get money and manage it, whereas number 7 was about getting to manage what you have in 7 days. But, what if you don’t have any money?

                  This is where this book comes in. It is a great read when you are struggling to get by on a monthly basis. This book works on your beliefs more than your actions. So, if you are looking to really change your perspective and get your finances right, this is the place to start.

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                  9. The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying by Suze Orman

                    Financial freedom is the final goal and worrying is the usual struggle. Here, they meet together. Suze Orman sets out a plan for financial freedom and an ease for your worries. What else could you want?

                    The author uses 9 steps for you to work on your finances, starting with your understanding of behavior, family and money. This book will create a great mindset and help you understand how you use money in your life and how it affects almost everything you do.

                    10. Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By by Cary Siegel

                      This is a question I’ve asked myself many times. Why is it that in school, they never teach you anything about money management? Everything starts from, as the author says, marrying the right person—they don’t need to be wealthy or a genius, but rather, someone who uses money effectively. Another option is to, of course, become educated together as you go. This is a great read for those in relationships or with a family.

                      There you have it: 10 powerful books that will teach you and help you achieve your financial goals in life.

                      Now, everything won’t fix itself just by reading; you have to, in fact, take action. As I always mention to any of my students, this is what makes the difference in everything we do in life. Action! It doesn’t need to be perfect—and never will be—but it will surely make a difference once you start applying some these teachings.

                      Over to you.

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                      Featured photo credit: Klein Nicks via farm4.staticflickr.com

                      More by this author

                      Jorge Gasca

                      Entrepreneur, Digital Marketing, Project Management, Planning Hacker

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                      Last Updated on July 20, 2021

                      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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                      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

                      Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

                      Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

                      Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

                      In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

                      Break Free of Your Finances

                      Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

                      When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

                      Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

                      Though it seems hard to believe, it is really very simple to get financial freedom.

                      To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

                      While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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                      Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

                      1. Stop Unnecessary Spending

                      We often spend money inwardly, instead of objectively.

                      For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

                      To stop this habitual spending, log down all your spending over the course of a month.

                      Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

                      This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

                      2. Plan a Monthly Budget

                      This is a great opportunity to get serious.

                      Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

                      Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

                      3. Cut-up Credit Cards

                      Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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                      If not, you may want to consider ridding your life of the burden that credit cards bring.

                      Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

                      Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

                      4. Increase Savings

                      There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

                      It’s good practice to save up to 15% of your income.

                      Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

                      Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

                      5. Invest Wisely

                      Consider investing in funds.

                      Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

                      To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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                      Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

                      6. Invest in Gold

                      There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

                      You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

                      Another way to invest in gold is through ETFs (Exchange Traded Funds).

                      These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

                      With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

                      7. Stash Emergency Funds

                      Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

                      If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

                      Make it hard to get your cash.

                      Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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                      8. Find Fabulous Mentors

                      Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

                      If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

                      There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

                      9. Be Extra Patient

                      Patience is the key of financial success.

                      Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

                      So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

                      Financial Freedom for All

                      Anyone can achieve financial freedom, regardless of their financial circumstance.

                      Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

                      Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

                      Featured photo credit: rawpixel via unsplash.com

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                      Reference

                      [1] Hartford Gold Group: IRA Retirement Accounts

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