According to WHO, over $7 trillion has been taken off the equity market. Over 2 million people have lost their jobs due to the coronavirus pandemic which leaves them with nothing than their savings. For those of them who read personal finance books and took the smart decision the story is different. Possessing knowledge about proper finance management is paramount and is worth your investment.
What is a Finance Book?
A finance book is any resource or material which teaches an individual all he needs to know about finances. Some times, some of them are more precise in certain areas. Before books became popular and widely accepted, there were lots of materials and papers that actually hit on financial principles. However, most of them missed inputting certain information. Of course, putting a book together is no easy task, but it’s a substantial source of passive income as it also helps you make the necessary adjustment depending on your feedback. I know it is difficult to accept because people write a lot of stuff that is impractical. However, while you get to get to know why you should read more financial books, you also get to see the best personal finance books that will change your life.
Why Should I Read a Personal Finance Book?
A good book on finance will help you do better with your finances. There is simply no doubt! However, I would want to be precise. Among a lot of reasons, I itemized six important reasons why you should read a personal finance book. Hence, these reasons include;
Practical Insight
A lot of times, when you ask questions regarding keeping your finances in check, the replies that come are very impractical. A lot of people can go far to tell you that you should survive on 10% of your income and invest 90%. How impractical! A good finance book will help you with real-time practical insight when it comes to making and multiplying your money. Don’t worry, this article outlines the best you can get to help you.
Investment Opportunities
Investment is the sure way to increase your wealth. Whether financial or human capacity investment, all of them play a significant role. However, you need to ensure you understand how an investment works before you plunge in. A good book can help you with the necessary information. Leveraging on an investment opportunity is always rewarding when you have the right knowledge and you use the right methods.
Financial Plan
A financial plan is very important. There’s no questioning its position. If you’re caught without a financial plan, you’re actually welcoming debt. Among other reasons, a financial plan helps you project how to budget your funds for great investments and proper utilization.
Right Habits
There are important habits you need to have when it concerns your finances. These habits when religiously practised eventually help you avoid debt and increase savings. Now, while some of these habits are timeless, others are totally dependent on your geographical location. So, this will influence your choice of a book. A lot of people have become better managers of their finances when they consistently practised the right money habits. So, you can join them and start building your way to wealth.
How Can I Improve my Financial IQ?
Your financial IQ is simply a combination of all your financial knowledge, what you read in the newspapers and blogs, and also what your friends told you. If you’re able to trace this, you’ll see the inaccuracy that is consistent in their communication. Because people speak based on their experiences and not principles. As much as picking up a personal finance book can help you, you need to speak to a finance coach. Your combine learning will dramatically change your story. An increase to your financial IQ means that you will make better financial decisions, especially during a bad financial time such as a pandemic. Also Read: How To Invest In Stocks As A College Student|Full Guide
Are Books A Good Investment?
Books are necessary. They are a timeless piece which educates and transforms the mind, thereby causing action that leads to growth. Although they might not be all funny and interesting, they teach core lessons that are needful for progress. Most times, a lot of people believe that reading books are very stressful. They would rather watch a video or something else. As much as those videos are important, they don’t eliminate the power inside the pages of a book. Because a book is a personal dealing – filled with workable experiences. A book is a great investment. In fact, it is one investment wherein you never lose because no knowledge is a waste. So, you shouldn’t be considering whether a book is worth an investment. You should be asking how much you can invest in a great personal finance book that can change your life.
How Do You Budget For A Money Book?
Budgeting for a money book is one of the best things you can do for yourself. Even though you don’t get your budgeting right, just ensure you get the book. The book will open you up to strategies that will help you budget better and make good decisions. So, if you want to budget for a money book, your best budget is to ensure you get the book.
15 Best Personal Finance Books
Now that you have understood what impact books can have on your life and finance, you are ready to make a pick. The books here are very practical and filled with insight that can help you grow your income from zero to what you want it to be. So carefully read each copy and follow the secrets you learn within their pages. Hence, the 15 best personal finance books include;
15. Financial Peace
Financial Peace is a powerful book authored by Dave Ramsey. After going through my piece, my finances took a very conscious leap. In this book, the author outlines thirty-seven principles responsible for bringing financial peace in every condition or circumstance you find yourself. I can’t list all the conditions but I will list some that struck me and I have continually applied till this very day. Some of them include; plant seeds, live substantially below your income, check your credit report every two years, learn basic negotiating skills etc. I can tell you that after you’ve carefully perused this material, you will set up yourself for a great retirement and you’ll also be debt-free.
14. The Science of Getting Rich
The Science of Getting Rich is a powerful personal finance book that can change your life. Written by Wallace D. Wattles, it is instructive and philosophical. If you truly want to get rich and also apply philosophical knowledge in your finances, this book is just what you need to give you a strong headstart. The book starts with educating the reader about his right to get rich. Afterwards, it began to talk about the science of riches. It concludes by giving the reader the precautionary measures to take and also the right businesses and principles to follow when they want to become rich. Readers have dropped powerful reviews about this book and as I said when it comes to understanding the science behind money, you won’t find a better material.
13. The Millionaire Fastlane
The Millionaire Fastlane is just a thriller. From the beginning of the book to its end, you will be amazed by the simple yet workable truths that you can learn from it. The book seeks to transmit the understanding that getting a degree, working hard and retiring late is not the best way to succeed. The author believes that early retirement is a possibility. In this material, the author pushed three ideologies. These ideologies include; wealth is not money, income should be independent of time and that you have a producer mindset. This wealth is not money ideologies teaches that you must invest in relationships. The independence of time demonstrates that you should discard the hourly work idea and finally, the producer mindset teaches that you should always seek to produce value. MJ Demarco is very practical as he retired a multimillionaire at 33. Is this your dream? You can simply get to a bookstore wherein you pick a copy of this amazing book.
12. Too Big to Fail
Too Big to Fail is not just a book. It’s a story of how Wall Steet and Washington fought to save the financial system and themselves. When it comes to principles of finance and how to overturn bad financial decisions, this book clearly expresses it. Andrew Ross Sorkin authored this book in 2009 and it won for the Gerald Loeb Award for Best Business Book in 2010. Indeed, an understanding of history is important when you want to overturn the financial crisis and this book helps you. So, you should get this book and start a financial recovery process for your life and business?
11. The Alchemy of Finance
George Soros is really daring. He makes some bold accusations in this book. In fact, let’s say he has the right because of his billionaire status. He proposes in this book that the market is always manipulated to favour the rich and rip the poor off their money. Additionally, he further stretched his point by explaining how traders benefit from trends because they actually push these trends. The book basically touches on the lessons of uncertainty, the importance of power relationships and much more. Then it concludes with the way out. Indeed, this book will change your perspective about the markets and give you the edge you need to make the right decisions.
10. The Wealthy Barber
The Wealthy Barber is a fictional financial planning book. David Clinton authored this masterpiece. The storyline depicts how a barber in a certain hometown went from being just a barber to a very rich person. It goes ahead to describe how some people in the same hometown went to have a conversation with the barber, asking him how he created his wealth. When it comes to financial planning, this book is one of the best resources you can ever find anywhere.
9. You’re a Badass at Making Money
This book generally attacks the wrong perceptions people have when it comes to making money. Indeed, it shatters all the mental blocks in details. The author actually communicates from her experience and how she was able to overturn her debt into a profitable asset. You’re a Badass at making money is a personal finance book that will change your life immediately you’re done reading it.
8. Money: Master The Game
Authored By Tony Robbins who has interviewed a good number of the biggest billionaires in the world. The author itemizes the seven steps that lead to financial freedom from his conversations with these billionaires. These steps are easy, practical and not exclusive to anyone. So, if you need to master your finances, get this book and start your journey to financial success.
7. Broke Millenial
The broke millenial is the book for the student and the person in a new job. This book clearly outlines how to deal with student loans while also talking about the hacks needed when negotiating for an increased salary. Another beautiful part of this piece describes how you can navigate through moving back to your house after you’ve lost a job. Indeed, this book cannot be summarized in a few letters. It’s just a shining path to financial freedom.
6. The Millionaire Next Door
The Millionaire next door is a piece which shows how high-income white-collar jobs neglect savings and investments. It draws a comparison between the high-collar jobs and menial jobs and shows how one trumps the other in the future. This book is very practical and gives huge insight into savings and investments.
5. The Intelligent Investor
The Intelligent Investor itemizes the roles an investor needs to play before he invests into a business. In essence, he says an investor analyzes the long term evolution and principles of a company before investing. If you’re looking for where to invest your capital, read this book so you understand the background framework and character behind investing.
4. Secrets of The Millionaire Mind
This book is powerful and very practical. It is filled with insight that is very important but hard to label. The author talked about how your experiences about money remain in your subconscious and go-ahead to run the way you see and address money. Then, he gives a breakdown of how you can change your psychology and be able to change your financial status. T.Harv Eker did justice in this piece as it’s one of the books with the highest reviews.
3. Rich Dad, Poor Dad
This book is a best seller. It has gotten great reviews and has won awards too. Robert Kiyosaki tells a story of how he has two father. His poor biological Dad and his Rich Dad. And he itemizes the roles they played in helping him create his income. One of the strong principles he teaches in the book is the art of “making your money work for you”. If you’ve not read this book, you’re taking a risk when it comes to making great financial decisions.
2. Think and Grow Rich
Think and Grow Rich is not just a great finance book. It is also a practical piece that teaches personal development. The book starts with breaking downs mental blocks to mind restructuring. At any page wherein you start reading this book, you’ll be blown away by its principles. Think and Grow Rich is a bestseller and one of the best finance books of all time.
1. The Richest Man in Babylon
Richest Man in Babylon is a classical time. In fact, the book is timeless. The principles that George Classon discussed in that book are applicable until this day. He tells the story of two men who made up their mind to understand how wealth is built. Although the book is fictional, it is the foundation upon which many other financial books are written.
Conclusion
As much as reading is important, taking action is actually what yields the results that you desire. You must be very consistent and unwavering when it comes to taking the decisions that will provoke progress in your life. Your greatest fulfilment will not just come from the result but from the decision to take the risk despite the odds.
