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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

                      How Not to Be Broke—10 Powerful Books to Learn about Money Management How to Be Productive and Effective: 10 Lessons from Great Leaders

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                      Last Updated on June 26, 2020

                      25 Easy Tips on How to Save Money Fast

                      25 Easy Tips on How to Save Money Fast

                      “How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

                      If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

                      You don’t really need to order in food. You don’t really need to buy expensive perfume.

                      Building from that, you can work out how your regular expenses can be reduced.

                      As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

                      And remember: a budgeted lifestyle does not mean a bad or boring one!

                      But first, understand what budget you can cut down on daily:

                      • Regular expenses for the average adult (can be trimmed but not eliminated):
                        • food
                        • rent/mortgage
                        • cell phone
                        • insurance
                        • socializing/entertainment
                        • transportation
                        • hygiene products
                        • household bills
                      • Irregular expenses for the average adult (can be eliminated or cut down a lot):
                        • travel
                        • clothing
                        • medication (*depends)
                        • grooming (hair, nails etc.)
                        • gifts

                      Now, let’s dive right into the 25 ways to save money fast:

                      Save Money on Food

                      1. Bring a stock of food to the office/work

                      Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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                      Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

                      2. Buy the store-brand version

                      Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

                      3. Eat cheaper cuts of meat

                      Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

                      4. Have group dinners

                      If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

                      Save Money in Transport

                      5. Get a bicycle

                      Save on gas money and bus/metro fares with this underrated mode of transport.

                      6. Use public transport and/or don’t get taxis

                      Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

                      7. Find the cheapest gas

                      Regularly check out where the cheapest gas can be bought.

                      Save Money in General Shopping

                      8. Shop online

                      Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

                      9. Sell your old stuff

                      Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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                      Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

                      10. Bulk buying stores

                      For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

                      Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

                      11. Become a flea market/car boot sale/street market guru

                      You can find original gifts and develop good negotiation skills at these places.

                      12. Generic brand medication

                      More often than not, the generic version of paracetamol and other basics work the same as the branded version.

                      13. Choose deodorant, not perfume

                      It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

                      Cut Down on Household Expenses

                      14. Printing

                      Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

                      e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

                      Expand the margins of what you are printing as often as you can to save on paper.

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                      15. Minimize SMS and phone calls

                      A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

                      16. Shop around for insurance

                      Most people don’t spend enough time searching for the best insurance deal.

                      Keep a watchful eye out for deals and new competitors in the market.

                      17. Try re-negotiating your rent/mortgage

                      If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

                      18. Don’t get a TV

                      Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

                      19. Pool your internet bill with a neighbour

                      My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

                      Save Money in Socializing, Entertainment And Travel

                      20. Have house parties

                      Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

                      For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

                      21. Open festivals, meetups and events

                      It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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                      22. Volunteer

                      If you can’t pay for a ticket, volunteer and get to be there anyway.

                      23. Housesit

                      There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

                      Save Money on Hygiene and Beauty

                      24. DIY beauty

                      French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

                      25. Fewer haircuts/volunteer at a trainee hairdresser

                      If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

                      Bonus: Effective Money-Saving Tips for Everything

                      Here’s a summary of what you can generally do to save more money:

                      • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
                      • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
                      • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
                      • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
                      • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
                      • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
                      • Stop and think. Do I really need it?

                      Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

                      What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

                      Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

                      More Tips for Personal Finance Management

                      Featured photo credit: Unsplash via unsplash.com

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