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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

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.

                      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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                      Published on November 8, 2018

                      How to Answer the Tough Question: What are Your Salary Requirements?

                      How to Answer the Tough Question: What are Your Salary Requirements?

                      After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

                      But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

                      Unfortunately, this is the wrong approach.

                      Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

                      Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

                      Of course, you can’t command a high price without bringing value.

                      The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

                      1. Hack time to accomplish more than most

                      Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

                      With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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                      Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

                      Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

                      For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

                      Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

                      It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

                      2. Set your own boundaries

                      Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

                      Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

                      Here are some important traits to consider:

                      • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
                      • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
                      • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

                      These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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                      3. Continuously invest in yourself

                      Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

                      You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

                      Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

                      Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

                      Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

                      It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

                      4. Document the value you bring

                      Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

                      To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

                      A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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                      Here are some ideas:

                      • joesmith.com
                      • joeasmith.com
                      • joesmithprojects.com

                      Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

                      During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

                      5. Hide your salary requirements

                      Avoid giving you salary requirements early in the interview process.

                      But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

                      The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

                      Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

                      6. Do just enough research

                      Research average salary compensation in your industry, then wing it.

                      Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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                      Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

                      Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

                      7. Get compensated by your value

                      Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

                      Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

                      Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

                      You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

                      The bottom line

                      You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

                      You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

                      Featured photo credit: LinkedIn Sales Navigator via unsplash.com

                      Reference

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