Looking for personal-finance books that actually help? Here are approachable picks and how to use them.
Are you a bookworm in need of a new challenge? Or a finance nerd wanting to expand your arsenal? Or perhaps you are learning to read and want some practice? Or, most likely, are you simply looking for good advice for how to achieve your financial goals, be at peace with your money, and have massive wealth? Fear not- this article has what you need. We all can point to at least one book that changed your life through new knowledge or a shift in perspective, and these personal finance books will do the same!
For me, one book pushed me to make the decision to pay off over $150k in student loans in only 16 months. These books will help you make meaningful progress to meet all of your personal finance goals, whether it's to massively increase your income with side hustles or to pay off massive amounts of debt with a low income (I've been there!).
This post will go over the best personal finance books for you and your financial goals, no matter what they are. Genius tips for massive financial success lurk in these pages!
Check out the best personal finance podcasts here!
This post is all about the best personal finance books.
Jump Ahead...
1. Your Money or Your Life by Vicki Robin and Joe Dominguez
2. The Simple Path to Wealth by J.L. Collins
1. Your Money or Your Life by Vicki Robin and Joe Dominguez
Coming in at a close second for the best personal finance books- Your Money or Your Life by Vicki Robin and Joe Dominguez. This book completely, and permanently, changed my mindset around money!
Unlike the Total Money Makeover, this book is not a step-by-step financial plan per se but instead, is a more philosophical approach to personal finances. But don't fret if you're not much of a philosopher.
In this easy to read book, Vicki and Joe go over the most important thing in personal finance, your mindset. This book discusses why so many people find themselves in financial trouble, and how their mentality towards money plays a role. You might assume that it's a lack of knowledge about complex financial strategies that keeps people broke, in debt, middle class and unhappy, but that's not the case. It's not a math problem, it's a mental problem. And Vicki and Joe do an amazing job of explaining why. To change your finances, you must change your mindset.
This book outlines exactly how every decision you make around money, is a decision about not just your finances, but something much larger- your life.
This book is great for everyone. It's extremely easy to read and requires no financial knowledge or understanding. It's simply a discussion of how best to approach your finances, and tells you exactly how you can achieve peace and happiness with a simple shift in mindset.
I loved reading this book. I actually listened to the audiobook which I really enjoyed. This book really changed my approach to how I think about my money and helped me to massively reduce my spending.
2. The Simple Path to Wealth by J.L. Collins
More similar to The Total Money Makeover, this book is a more detailed approach to how to handle your finances. Just like The Total Money Makeover, it includes specific advice and instructions for how to pay for your home, how to manage debt, and how to invest. If you're looking for seasoned and sage advice distilled down into an easy-to-digest package, this book is for you!
This book was originally written by J.L. for his daughter, wanting to explain basic financial decisions in an easy-to-understand way. That is something that makes this book unique and approachable. He wrote it knowing his daughter wasn't a financial nerd and, like most people, didn't want to spend hours researching tax-advantaged accounts and index funds. He takes the role of teacher, explaining things well and offering straightforward advice. I really enjoyed his explanations of why he recommends certain financial strategies, as they helped me to understand my own finances better.
I love this book and see it as an essential read for anyone who wants simple, no-nonsense financial advice that guarantees wealth and success. J.L. Collins' approach to finances is wise, cautious, and perfect for the average person. It is an easy read. It is more detail oriented and nuanced than the Total Money Makeover is, offering more comparisons and explanations for certain financial approaches instead of the one-size-fits-all approach of the TMM.
Unlike The Total Money Makeover, J.L. recommends only paying off "high-interest debt" first instead of all debt like Dave Ramsey does. He also recommends different, but similar, investing strategies than Dave Ramsey. Although I agree more with Dave Ramsey's approach to debt, I side more with Mr. Collins on investing strategies. I also find J.L.'s approach to home ownership resonates with me better than the advice offered in The Total Money Makeover.
I also loved J.L.'s blog for some easy personal finance reading!
3. The Millionaire Next Door by Thomas Stanley and William Danko
This book is simply a personal finance classic! The Millionaire Next Door is a fantastic, engaging read that details the secrets of America's wealthiest. It's filled with as many surprises as it is sage advice.
This book is an exploration of millionaires, how they got there, how they stay there, what they do, and perhaps most important, what they don't do. The analysis is based on a survey of over 1,000 millionaires in the U.S. This book outlines 7 traits that all millionaires have in common, and they might surprise you!
This book details why becoming a millionaire is actually a realistic goal for every American, regardless of education level, upbringing, or inheritance. If you think luck, rich parents, and above-average smarts are required for building massive wealth, think again! And this book will tell you exactly why.
This book offers a peek inside the everyday minds of millionaires. And most importantly, it details exactly how YOU can become a millionaire yourself by simply adopting the traits and attitudes of millionaires.
This book is an oldie but a goody. It has truly stood the test of time. I even think that with social media, this book is more relevant now than ever. I really enjoyed this book, which I listened to as an audiobook, perfect for if you learn better with your ears than eyes! It's a super easy read.
Unlike The Simple Path to Wealth and The Total Money Makeover, this is not a book that tells you in detail how to manage your money, invest, how to approach a mortgage, etc. Instead it offers "advice" in the form of detailing how millionaires acquire and keep their millions.
4. I Will Teach You To Be Rich by Ramit Sethi
Last- but definitely not least! This book is a newer personal finance book, but it's quickly become a top personal finance book. This 6-week program can overhaul your money systems.
In IWTY, Ramit guides the reader through the exact methods needed to become rich and, more importantly, fulfill all of your financial dreams! This book is unique in several ways that differentiate it from the above recommendations.
Ramit explains in detail all of the fundamentals of personal finance in a way that's easy to follow and surprisingly not boring. He has a fun and logical approach to personal finances, and he's not afraid to call you out, many times! Ramit knows exactly why you're not making financial progress, and spoiler alert, it's your fault!
Don't worry, he then goes over exactly how to achieve financial success and have the life of your dreams. He doesn't believe in cutting out your morning coffee runs, and instead focuses on big-picture decisions that will actually make you wealthy.
This book is most similar to The Simple Path to Wealth, in that it is not only a financial guidebook with specific instructions, but it explains the principles of wealth building and the why behind these recommendations.
One of my favorite things about this book is that it addresses the mindset aspects of money management. Ramit identifies many issues in the way people think about and approach money and explains why these mental mis-steps are the true wealth killers. This book is especially perfect for people under 40 years old as Ramit focuses a lot on young people and their financial mistakes.
What is your debt free date? Let me know @ShesFinanciallyFree1 !
More about helpful finance tips...
