Your finances (the way you handle your money) are an important part of your life. After all, why else would 25 percent of Americans say that they worry about money all of the time?
There’s an old saying about your finances that goes “if you don’t manage your money, your money will manage you”. When it comes to your financial habits, several key areas need to be addressed to become as well rounded with money as possible.
You can always look into a personal finance course, or you can make use of experts out there who already have experience by reading their books on finance. Being able to manage your finances is critical, so the more knowledge you have, the better.
Best Finance Books
There are many key parts to managing your finances. Whether you’re looking for knowledge on budgeting, money management, investing, or other important finance topics, there’s a book for that!
We’ve gathered the information on eight of the best finance books you can read and how they can help you to become more well-rounded when it comes to money.
Budgeting
1- “You Need a Budget: The Proven System for Breaking the Paycheck-to-Paycheck Cycle, Getting Out of Debt, and Living the Life You Want” by Jesse Mecham
Do you budget? No matter how money you earn, your finances can benefit from creating a budget that works for you and then sticking to it. And that’s exactly what author Jesse Mecham is going to help you do.
Serving as the basis for the popular YNAB app, You Need a Budget will demonstrate the guiding principles of budgeting by introducing you to their four-pillar method:
- Give Every Dollar A Job
- Embrace Your True Expenses,
- Roll with The Punches
- Age Your Money
Anyone who feels “stuck” when it comes to their finances or believes that budgets simply don’t work will think again after they read this book.
Money Management
2- “I Will Teach You To Be Rich: No guilt, No Excuses – Just a 6-week Programme That Works” by Ramit Sethi
No one knows finances quite like author Ramit Sethi. And in his updated version of his New York Times best-seller, he’s going to show you exactly what you should be doing.
I Will Teach You to be Rich is a 6-week plan that will help you to build your credit, make better decisions about spending, and automate your savings and investments. Unlike most finance books that are encouraging you to squeeze your finances down to the last penny, Sethi takes a refreshing approach offering you advice you won’t expect such as “spend extravagantly on the things you love”.
This book is helpful for anyone looking for motivation and practical guidance on managing their finances. Especially if you’re in your 20s or 30s, you should check it out.
Saving More Money
3- “The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich” by David Bach
This is the book about finances that made coffee houses all around the world shiver after author David Bach introduced the concept of “The Latte Factor”.
Now the author of ten New York Times best-sellers, Bach offers an updated version of his 2004 classic. Learn how a middle-class couple earning no more than $55,000 per year can retire at 55 with more than $1 million in savings, put two kids through college, and own two homes debt-free.
Through its simple use of storytelling and avoidance of complex investing topics, you’ll see how easy it can be to manage your finances and set yourself up to achieve millionaire status.
Investing
4- “The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns” by John Bogle
The late Jack (John) Bogle has helped more people with their finances than you could ever imagine. As the founder and CEO of the Vanguard Group, his persistence that trying to beat the market is “a loser’s game” has helped common investors to save billions of dollars in unnecessary fees and risk.
In The Little Book of Common Sense Investing, Bogle will teach you one of the simplest investment strategies known to date: Purchasing low-cost index funds. Not only will they save you a ton of time trying to research other investments, but they will also beat most actively managed funds.
Investing is the way you grow your finances, and if you want to find out just how easy that could be, then you’ll definitely want to hear what Bogle has to say.
Retirement
5- “The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life” by JL Collins
If there’s one thing you could learn about finances, it’s how having “F-You Money” could change your life.
This is what you’ll learn in The Simple Path to Wealth from author JL Collins, one of the most revered bloggers in the F.I.R.E. movement (financially independent, retired early). More than just a book about saving for retirement, The Simple Path to Wealth is a series of unconventional teachings and life lessons that will teach how to truly find your version of financial freedom.
If you’re looking for a refreshingly unique approach to saving for retirement that feels like the advice of a sage, old friend, then you’ll definitely want to check this book out.
Passive Income
6- “Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!” by Robert Kiyosaki
Since its first publication back in 1997, Rich Dad Poor Dad has served as an inspiration for those in search of turning their finances into the ultimate money-making machine known as “passive income”.
Author Robert Kiyosaki illustrates how passive income can help you to achieve financial independence through the story of his two dads. While his real father (poor dad) struggled financially despite being educated and having a great job, Kiyosaki’s friend’s dad (rich dad) taught him that true financial success can be achieved through owning your own businesses and putting other people to work for you.
Rich Dad Poor Dad has been a personal finance staple for more than two decades now. This is a must-read for anyone who wants to understand the difference between working for money and having your money work for you.
Mindset
7- “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” by Thomas Stanley and William Danko
Without question, The Millionaire Next Door is guaranteed to transform the way you think about your finances.
In an age where major media has us all believing that “the rich” are free to do with their finances as they please, author Thomas Stanley dispels this myth by identifying seven common traits that show up again and again among the wealthy. Real millionaires, as it turns out, are actually quite frugal. They bargain shop for used cars, pay less taxes, and reject the big-spending lifestyles most of us associate with the rich.
Not only will you find this book interesting, but it will significantly have you questioning your mindset when it comes to spending as well as how the wealthy truly live.
Life Fulfillment
8- “Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence” by Vicki Robin and Joe Dominguez
Never has any other book done such a good job of connecting your finances with something even more valuable than money – your time.
Your Money or Your Life is considered one of the most enlightening books when it comes to money because it forces you to realize just how much time you’re trading to buy things you don’t need. Time management is always an important thing to consider, and Vicki Robin knows that. Through her nine-step program, author Vicki Robin will teach you how to calculate how much your time is worth and then make you question what you’re really doing with it.
There’s no other book on finances quite like Your Money or Your Life. Read it for yourself, and you’ll see why its been a financial community favorite for over twenty-five years.
Final Thoughts: Best Finance Books
Knowing about and managing your finances is a crucial aspect of life. Use these best finance books to learn how to make your finances work for you.
Want to learn more about personal finances? If so, you may also enjoy our guide on the best personal finance books.
