Advertising
Advertising

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

    Advertising

    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

        Advertising

        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

            Advertising

            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

                Advertising

                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

                      More by this author

                      10 Benefits of Sleeping Naked You Probably Didn’t Know 12 Inspirational Speeches That Teach You the Most Valuable Life Lessons 15 Most Effective Cool Down Exercises For Every Workout 10 Things Guys Love That You Didn’t Expect 20 Google Search Tips to Use Google More Efficiently

                      Trending in Money

                      1 The Best Ways to Save Money Even Impulsive Spenders Can Get Behind 2 How to Answer the Tough Question: What are Your Salary Requirements? 3 How Personal Finance Software Helps You Get More Out of Your Money 4 The Definitive Guide to Get Out of Debt Fast (And Forever) 5 35 Real Ways to Actually Make Money Online

                      Read Next

                      Advertising
                      Advertising

                      Published on November 20, 2018

                      The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

                      The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

                      The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

                      Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

                      In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

                      Why Your Past Prevents You from Saving Money

                      Are you constantly thinking about your financial mistakes?

                      If so, these thoughts are holding you back from saving.

                      I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

                      It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

                      For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

                      Advertising

                      How to Effortlessly Track Your Spending

                      Stop manually tracking your spending.

                      Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

                      When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

                      Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

                      The Truth on Why You Keep Failing

                      Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

                      Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

                      Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

                      If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

                      Advertising

                      Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

                      Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

                      1. Save more than 50% of your available money (after expenses)
                      2. Only buy nice things after saving
                      3. Automate your savings with automatic bank transfers

                      These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

                      How to Foolproof Yourself out of Debt

                      Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

                      So how can you separate yourself from the 60%?

                      By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

                      This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

                      For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

                      Advertising

                      Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

                      A Proven Formula to Skyrocket Your Savings

                      Having proven systems in place to help you save more is important, but they’re not the best way to save money.

                      You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

                      What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

                      Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

                      Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

                      During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

                      Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

                      Advertising

                      Transform Yourself into a Saving Money Machine

                      Saving money isn’t complicated but it’s one of the hardest things you’ll do.

                      By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

                      The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

                      Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

                      Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

                      What are you waiting for? Go and start saving money, the sky is your limit.

                      Featured photo credit: rawpixel via unsplash.com

                      Reference

                      Read Next