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Know How To Manage Your Money: 10 Personal Finance Books You Need To Read

Know How To Manage Your Money: 10 Personal Finance Books You Need To Read

Managing your money is one of the most important things you can do. It doesn’t matter if you’re personally wealthy and trying to figure out how to invest or flat broke living paycheck to paycheck. Proper management techniques can save you money, make you money, and keep things in order. Here are some personal finance books that can help you do just that.

1. The Millionaire Next Door by Thomas J Stanley, Ph.D.

personal finance books

    First up is a delightful read called The Millionaire Next Door by Dr. Thomas J Stanely. This is a great book for people in their 20’s. It takes years of research and boils it down in solid, easy-to-understand rules that people can use to manage their finances and become more financially stable. Some of the lessons are pretty well known such as “spend less than you make.” It’s a great read and definitely worth your time.

    2. The Investment Answer by Gordon Murray and Daniel C. Goldie

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    personal finance books

      For young people, reading about finance is boring. I’m writing this article and even I shudder at the thought of learning about it. It’s complex and full of rules, regulations, risks, and rewards. The Investment Answer comes recommended by Business Insider as very approachable and easy to understand which makes it great for investment beginners. That said, it may be a bit weak for those who are already familiar with investments.

      3. Why Didn’t They Teach Me This in School? by Cary Siegel

      personal finance books

        As the name implies, this book is about all of the basic personal finance lessons that they probably should’ve taught us in school and didn’t. There are 99 tips, tricks, and lessons for personal finance that pretty much everyone should know and reviewers have called it a “great gift idea for high school and college graduates.” We happen to agree.

        4. The Money Book for the Young, Fabulous, and Broke by Suze Orman

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        personal finance books

          Being broke can be a horrible thing. You have rising debt, you’re stuck in a hole, and you don’t know what to do. This book can help you figure out what to do. It doesn’t matter if it’s credit card debt, student loans, or some other financial malady, Suze Orman has advice to help you get rid of it for good.

          5. Secrets of the Millionaire Mind by T. Hary Eker

          personal finance books

            In this book, you’ll learn exactly what separates rich people from everyone else on a subconscious level. According to Eker, millionaires are millionaires because of how they approach money, and it has little (if anything) to do with skill, talent, or knowledge in their business. It’s an interesting read and one that may help you change your tune financially.

            6. How to Retire Happy, Wild, and Free by Ernie J Zelinski

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            personal finance books

              Why do we work? So we can take care of ourselves. However, the second reason we work is so that one day, we don’t have to work anymore. In this book. Zelinski not only shows you how to retire well financially but also how you can enjoy life even if you don’t retire with a million bucks. It’s lighthearted, fun, and for people of all ages.

              7. I Will Teach You To Be Rich by Ramit Sethi

              personal finance books

                If you’re looking for something less philosophical and more direct, this is a great book to read. Here you’ll find a six week course that’ll help you set your financial life straight. It’s not an end-all-be-all solution but after the six weeks you should be on a much better track financially. It’s very highly rated on Amazon and word is that it’s also humorous and personable which is a change of pace for personal finance.

                8. Your Money: The Missing Manual by J.D. Roth

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                personal finance books

                  J.D. Roth is truly an inspiration when it comes to personal finance. He started out dirt poor, did the research, and found out the missing links that was preventing him from being successful. He started a blog and eventually wrote this book. If you’re not doing well financially and want to turn it around, this is a great place to start.

                  9. Thinking, Fast and Slow by Daniel Kahneman

                  Personal Finance books

                    The first thing you should know about Daniel Kahneman is that he’s so good at economics, they gave him a Nobel Prize for it. That means his opinion is probably one that should be respected. In this book, Kahneman explores the way we think about money and has determined that we either make decisions quickly or slowly. He explains the pros and cons of each and when we should use each one to make financial decisions. It’s a little complex but it’s definitely worth a read.

                    10. You’re So Money: Live Rich, Even When You’re Not by Farnoosh Torabi

                    personal finance books

                      Last on our list is a book that shows you how to have fun even when you don’t make enough money to have fun. This book is a great way to get the things that you want without going broke or going into debt. It preaches making sacrifices in some areas so you can have fun for others. One cited example is taking out your significant other on an expensive date, but eating PB&J for several days to make up for it. If you want nice things but don’t make that kind of money, check this book out.

                      Featured photo credit: Swingers via groupthink.jezebel.com

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                      Joseph Hindy

                      A writer, editor, and YouTuber who likes to share about technology and lifestyle tips.

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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.

                      More About Thinking Smart

                      Featured photo credit: Austin Distel via unsplash.com

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