Personal finance YouTube personality Jaspreet Singh recently recommended on an episode of his show Minority Mindset that everyone in their 20s invest in reading four books – three specific personal finance titles and one autobiography or biography of a successful person.
But what finance books should you read? Singh offered his own picks, and there happens to be some overlap with our list! But we wanted to go a step further and recommend 10 personal finance titles you should read this year if you want to be rich.
If you’ve already read them, they might be worth a second look. After all, every time you read a book, you are in a different stage of life and take away new knowledge from it. You can grab these books at your local library for free, pick them up at a bookstore or Amazon, or – if you prefer digital copies – find them on Kindle.
10 Best Personal Finance Books
We selected these books for their relevance, readability, and life-changing insights. Whether you’re a young adult looking to set a strong financial foundation or an experienced retiree who is looking to maximize their investments, there’s a book for you here.
1. “Rich Dad Poor Dad” by Robert Kiyosaki
Brief Summary
Robert Kiyosaki’s “Rich Dad Poor Dad” introduces two father figures with contrasting views on money. His biological father is a traditionalist, believing in formal education and secure employment. On the other hand, his “rich dad” is a savvy entrepreneur who teaches Kiyosaki the ropes of building wealth through investments, real estate, and financial smarts.
The book challenges the reader to reconsider traditional financial wisdom. It drives home the importance of financial education and the difference between assets and liabilities, crucial for becoming financially free.
Key Concepts Covered
- The difference between assets and liabilities
- The importance of financial education
- Rich dad vs. poor dad philosophies
Who It’s Best For
This book is a must-read for anyone who wants to reconfigure their understanding of money, particularly those who’ve grown up with traditional views on finance.
Practical Takeaways
- Understand what constitutes an asset and what makes a liability
- Take personal responsibility for your financial education
- Set up a financial game plan aimed at acquiring assets
2. “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko
Brief Summary
“The Millionaire Next Door” dispels the myth that millionaires live extravagant lifestyles funded by high salaries. Through data-driven research, the authors reveal that most millionaires are, in fact, regular people who live frugally and invest wisely.
This book dives into the characteristics and habits common among millionaires. It provides a new perspective on wealth, showing that the real millionaires are not the ones buying flashy cars, but those who prioritize saving and investing.
Key Concepts Covered
- Frugality and building wealth over time
- How America’s wealthy actually live and spend
Who It’s Best For
This book is ideal for those who want a peek into the less visible but more prevalent forms of American affluence. It can help you build wealth slowly and spend your money wisely.
Practical Takeaways
- Understand that too many small pleasures can derail your financial goals
- Develop a disciplined approach to saving and investing
- Recognize the value in being frugal
3. “Your Money or Your Life” by Vicki Robin and Joe Dominguez
Brief Summary
“Your Money or Your Life” offers a fresh take on personal finance by examining the relationship between time and money. It provides a nine-step program to transform your relationship with money and achieve financial independence.
This book is more than a financial guide. It’s a manual for living a balanced life, challenging you to rethink your routines and lifestyle choices, encouraging mindfulness in spending and saving.
Key Concepts Covered
- The relationship between time and money
- Steps towards financial independence and retiring early
Who It’s Best For
Anyone interested in financial independence and a balanced life should have this book on their shelf.
Practical Takeaways
- Learn how to save money effectively
- Calculate your real net worth
- Re-evaluate your spending based on personal values and life goals
4. “I Will Teach You to Be Rich” by Ramit Sethi
Brief Summary
Ramit Sethi’s book delivers a six-week personal finance program targeted at 20-to-35-year-olds, but you’re never too old to absorb the concepts in this book. The New York Times bestseller focuses on banking, saving, budgeting, and investing. It breaks down complex concepts into easily digestible lessons.
The author advocates for financial automation as a way of managing money effectively. This book is a comprehensive guide for those who want practical steps to achieve financial freedom without sacrificing their lifestyle.
Key Concepts Covered
- Automating your finances
- Investment strategies that work
Who It’s Best For
Young adults or anyone new to personal finance who wants a straightforward guide to securing a financially independent future.
Practical Takeaways
- Automate your bank account transactions for bills and savings
- Understand how stock market investments work
5. “Thinking, Fast and Slow” by Daniel Kahneman
Brief Summary
Daniel Kahneman’s “Thinking, Fast and Slow” explores the systems that govern our thinking. Kahneman, a Nobel laureate, delves deep into human psychology and behavioral economics, focusing on decision-making processes, including financial choices.
The book is an eye-opener for understanding the biases and errors that influence our actions. It offers insight into why we make poor financial decisions and how to make better ones.
Key Concepts Covered
- Behavioral economics and money management
- The psychology of decision-making
Who It’s Best For
Readers interested in understanding the psychology behind their money mistakes should read this book.
Practical Takeaways
- Learn to make better financial choices
- Understand the psychological traps that lead to poor investing decisions
6. “The Simple Path to Wealth” by JL Collins
Brief Summary
“The Simple Path to Wealth” simplifies complex investment and retirement planning strategies. Author JL Collins aims to provide a clear guide on achieving financial independence and retiring early through the power of index funds.
This book is more than an investment guide; it’s a roadmap to achieving financial freedom. It offers detailed strategies for saving, investing, and planning for retirement, making it an excellent resource for long-term financial success.
Key Concepts Covered
- The power of index funds
- Planning for early retirement
Who It’s Best For
This is an excellent book for those wanting to retire early and are interested in value investing.
Practical Takeaways
- Understand why index funds are a safe bet for long-term growth
- Get a roadmap for retiring early
7. “Broke Millennial” by Erin Lowry
Brief Summary
“Broke Millennial” is Erin Lowry’s engaging personal finance book aimed at millennials and young adults. The book addresses common financial issues such as student loans, budgeting, and discussing finances in relationships.
Lowry, who identifies as a financial feminist, provides actionable advice with a touch of humor. Her focus is on empowering millennials to take control of their financial future through practical tips and relatable anecdotes.
Key Concepts Covered
- Budgeting strategies
- Dealing with student loan debt
Who It’s Best For
Millennials and anyone feeling overwhelmed by the financial responsibilities that come with adulting.
Practical Takeaways
- Learn how to budget effectively
- Gain insights into managing student loans and debt
8. “The Psychology of Money” by Morgan Housel
Brief Summary
Morgan Housel’s “The Psychology of Money” explores the emotional aspects of personal finance. It looks beyond numbers and spreadsheets to examine how human behavior affects saving, spending, and investing decisions.
Housel draws from a wide range of examples to make his points. He evaluates the decisions and actions of lottery winners and poker champions, but also looks at everyday decisions we all make. This book will challenge your assumptions about money and success.
Key Concepts Covered
- The emotional aspects of money
- The long-term perspective on building wealth
Who It’s Best For
Those interested in the more abstract, emotional factors affecting personal finances.
Practical Takeaways
- Understand the emotional pitfalls that can impact your financial life
- Learn how a long-term perspective aids in accumulating wealth
9. “The Richest Man in Babylon” by George S. Clason
Brief Summary
“The Richest Man in Babylon” is a classic book offering financial wisdom through parables set in ancient Babylon. The stories focus on fundamental principles of saving, investing, and growing wealth.
This book has stood the test of time and remains relevant even in today’s fast-paced world. It’s a valuable read for anyone looking for foundational principles on managing finances and building wealth.
Key Concepts Covered
- The importance of saving at least 10% of your income
- Investing wisely
Who It’s Best For
Anyone looking for an easy-to-read yet profound book on the basics of personal responsibility in finances.
Practical Takeaways
- Recognize the importance of consistently saving money
- Learn the basics of wise investment and wealth accumulation
10. “The Total Money Makeover” by Dave Ramsey
Brief Summary
Dave Ramsey’s “The Total Money Makeover” offers a no-nonsense approach to debt elimination and wealth building. As a former financial planner, Ramsey provides a straightforward seven-step plan designed to lead you to financial freedom.
The book emphasizes the importance of living below your means and saving for the future. It offers actionable advice on budgeting, eliminating credit card debt, and building an emergency fund.
Key Concepts Covered
- Importance of an emergency fund
- The ‘snowball’ method for debt elimination
Who It’s Best For
Those burdened with debt or living paycheck to paycheck will find this book extremely helpful.
Practical Takeaways
- Create an emergency fund as a financial cushion
- Follow Ramsey’s proven plan for eliminating debt
- Use budgeting as a tool to control spending
Conclusion
The path to financial freedom, early retirement, and a balanced life starts with the right knowledge and a good plan. The best personal finance books listed here are designed to give you a rounded view of how to manage money, from detailed financial planning to understanding the emotional and psychological aspects of money.
So, go ahead and pick a book, or two or ten, and take that first important step toward financial independence and a secure future. Whether you’re a young adult starting financially or deep into your career, these books offer valuable wisdom and practical tips that can significantly impact your life.
Frequently Asked Questions
What is the best personal finance book?
Choosing the best personal finance book depends on your current financial situation and goals. However, “Rich Dad Poor Dad” by Robert Kiyosaki is often recommended for its approachable language and fundamental financial advice.
What are the best books on how to make money?
The top books that focus on making money include:
- ‘The Millionaire Next Door’ by Thomas J. Stanley
- ‘Think and Grow Rich’ by Napoleon Hill
- ‘The Automatic Millionaire’ by David Bach
- ‘The 4-Hour Workweek’ by Timothy Ferriss
- ‘The Psychology of Money’ by Morgan Housel
- ‘The Millionaire Fastlane’ by M. J. DeMarco
These books offer different perspectives and strategies for increasing your income.
What are the best books on how to save money?
If you’re looking to save money, consider reading:
- ‘The Total Money Makeover’ by Dave Ramsey
- ‘Your Money or Your Life’ by Vicki Robin and Joe Dominguez
- ‘I Will Teach You To Be Rich’ by Ramit Sethi
- ‘The Financial Diet’ by Chelsea Fagan and Lauren Ver Hage
- ‘But First, Save 10’ by Sarah-Catherine Gutierrez
These books provide actionable advice on how to save effectively.
What books can help you become financially literate?
To become financially literate, consider reading:
- ‘The Richest Man In Babylon’ by George S. Clason
- ‘Personal Finance For Dummies’ by Eric Tyson
- ‘Broke Millennial’ by Erin Lowry
- ‘Why Didn’t They Teach Me This in School?’ by Cary Siegel
What are some must-read investment books?
Some must-reads for anyone interested in investing include:
- ‘The Intelligent Investor’ by Benjamin Graham
- ‘Common Stocks and Uncommon Profits’ by Philip Fisher
- ‘A Random Walk Down Wall Street’ by Burton Malkiel
- ‘One Up On Wall Street’ by Peter Lynch
What books explain how money works?
To understand the fundamentals of how money works, you could read:
- ‘The Ascent of Money’ by Niall Ferguson
- ‘Sapiens: A Brief History of Humankind’ by Yuval Noah Harari
- ‘Freakonomics’ by Steven D. Levitt and Stephen J. Dubner’
- ‘The Bitcoin Standard’ by Saifedean Ammous
