The earlier you know how money works, you’ll get more chances of being successful in the nearest future.
But if you think it’s too late to be financially literate, then know that it is never too late to learn.
After all, the first step in being financially stable is knowing money and how it works.
And the best way to start this journey is to focus on your financial literacy by reading books.
This article will feature some best financial literacy books that tackle budgeting, saving, investing, and more.
Top 22 Best Financial Literacy Books
It is essential to have money know-how in this fast-paced world to achieve financial freedom.
I know, it’s not taught in schools. This is one of the main reasons this ‘money book’ post is so important.
These books will help you understand the ins and outs of financing – including saving, earning, investing, and managing money.
The Total Money Makeover
Dave Ramsey’s bestselling piece, The Total Money Makeover, will help you break free from debts and change your financial life forever.
Ramsey’s 20 years of experience in financial counseling allowed him to formulate practical seven steps for a total money makeover.
It also features 50 stories from people who experienced a struggle with money, followed these steps, and succeeded with cash.
Wherever side of the income range you are, this plan will lead you out of debt and control your expenses.
I’m not the biggest Dave fan, but that’s mainly because he’s against credit cards. I love credit cards. I get that it’s a part of his philosophy. It’s probably best for the masses.
Related Reading: Best Personal Finance Rules – Get To Know Here.
Rich Dad, Poor Dad
Robert Kiyosaki and Sharon Lechter wrote the book that would later be the best finance book of all time.
Rich Dad Poor Dad promotes the significance of financial literacy and building wealth through investing in assets, real estate, and business.
The book is also about Kiyosaki’s story of growing up with two dads, his birth father and his friend’s father.
Their two perspectives on handling money molded him to manage his money and invest in assets.
I read this book while still in high school, and I fell in love. I also read Rich Kid, Smart Kid and a number of his other books.
The Millionaire Next Door
The Millionaire Next Door is a book by Thomas Stanley and William Danko that consists of a research compilation of American millionaires.
They compared the millionaires’ behavior into categories: Under Accumulators of Wealth (UAW) and Prodigious Accumulators of Wealth (PAWs).
The book is not purely a step-by-step guide to financial literacy but research about how you perceive rich people.
Generally, rich people can be someone who mows their lawn, and copying in-you-face rich people will not make you become one of them.
I read this one back in 2000. It’s definitely a classic.
Stop Acting Rich
Thomas J. Stanley, the author of The Millionaire Next Door, wrote his next book to put wealth in perspective.
Stop Acting Rich: And Start Living Like A Real Millionaire is about how people fall easily with luxury brands and hinders them from being rich.
Furthermore, it teaches how to stop the destructive cycle of overspending and to live wealthy without spending a lot.
You can understand how to be rich without status symbols and use this strategy to achieve fulfilling financial freedom.
I Want More Pizza: Real World Money Skills For High School, College, And Beyond
Steve Burkholder’s I Want More Pizza is the perfect book for teenagers who want to learn about financial literacy.
As a young adult, money management can be a little overwhelming, but this book will teach that in a fun way.
The 70-page book condensed all you need to know about cards, investing, spending, saving, loans, and setting goals.
I Want More Pizza will let you take control of your personal finance with various options to choose from to use in real life.
Think and Grow Rich
Think and Grow Rich is a book from 1937 by Napoleon Hill which took inspiration from the business magnate Andrew Carnegie. I first read this book in 2004 while still in college.
Hill wrote this personal development book after the Great Depression, which is timely because of its theme.
The optimism and guided steps in achieving wealth helped many people for decades and wished to transform thoughts into riches.
The book took inspiration from millionaires to emphasize getting what you want instead of getting rich.
Related Reading: Top Cash-Flowing Assets – Invest In These Now!
The Richest Man in Babylon
The Richest Man in Babylon by George Clason is a compilation of parables from 4,000 years ago that gives financial advice.
As a classic finance book, it unravels the key to making, growing, and keeping wealth through the universal laws of prosperity.
These different tales will help you solve your debt, start a business, attract luck, and choose an investment.
So if you wish to accomplish any goal and achieve your desires, this book will guide you with your financial problems.
Personal Finance for Dummies
Personal Finance for Dummies by Eric Tyson is the best book for people who are looking for practical financial advice.
This book lets you know the usual mistakes in handling money and offers solutions to save it.
You can measure your financial health by using worksheets and looking at how much debt you have your savings, and your investment.
Personal Finance for Dummies will keep your finances in check while you improve your financial strategies.
The Intelligent Investor
Benjamin Graham is behind The Intelligent Investor, a finance guru and an economist.
This work focuses on the stock market and how to make money using it without taking significant risks.
Graham’s investing principles help many aspiring investors who are aiming for profit from the market’s inclination.
So if you are looking into investments but are afraid of the risks, this vital book will help you start.
Clever Girl Finance
Clever Girl Finance is the best book for intelligent women who wants to become money expert and reach financial freedom.
Its author Bola Sokunbi is a Certified Financial Education Instructor and founder of Clever Girl Finance, which empowers and educates women financially.
Sokunbi shares her mistakes and how she recovered from them to teach the new generation of women about their financial life.
You’ll learn about monitoring expenses, planning a budget, starting a side hustle, and leading a path to financial success.
Broke Millennial
Erin Lowry, author of Broke Millennial, will help you with your financial life regardless of which point in life you are now.
Many people freak out when dealing with finances, but you don’t have to spend your life worrying about debts.
Broke Millennial features a step-by-step guide to help you rise from broke status to a successful millennial.
Lowry goes beyond the basics in money management; she will also discuss splitting bills, managing student loans, and a few funny stories.
Hustle Away Debt: Eliminate Your Debt by Making More Money
David Carlson is another author who helps millennials with their finances, especially those in debt with loans.
Hustle Away Debt focuses on how to get out of debt by pursuing side hustles that can give you good money.
Not only are you slowly paying your loans, but you are also exploring new fields that will be useful for you.
This book is a motivation to free yourself from the shackles of debt and start realizing your control over money.
Related Reading: Why Is A Budget Important – Find Out Here.
Money Talks: The Ultimate Couple’s Guide to Communicating About Money
Talaat and Tai McNeely are not just marriage experts.
They are also financial educators that help couples with their economic life.
Money Talks is the best purchase for couples who want to experience financial freedom while they are with a partner.
Personal finance is one thing, but couple finance is another; thus, Money Talks unites couples with their financial goals.
So if you need to resolve your fights with your partner about money, this book gives you thoughts to ponder and discuss.
Get Good with Money: Ten Simple Steps to Becoming Financially Whole
Get Good with Money is easily one of the best books about financial literacy by Tiffany Aliche, who was a preschool teacher.
These ten steps are your shortcut to a safe journey towards financial independence and peace of mind.
She formulated this list when she suffered from a financial hole herself and started her mission to rescue it.
This work introduces a practical and powerful guide to making money quickly and managing even the most complex finances.
I Will Teach You to Be Rich
I Will Teach You To Be Rich, authored by Ramit Sethi in 2009, is a New York Times best-seller personal finance book.
It is a practical approach based on financial planning, banking, saving, budgeting, and investing, which are vital in personal finance.
He essentially discusses how you can save time by managing money, myths about credit cards and taxes.
I Will Teach You to Be Rich also highlights how starting early on learning finances is better than being smart to be more successful.
Financial Peace University
Financial Peace University is a complete guide to finding the financial peace everyone aims to achieve.
Dave Ramsey, the author behind this guide and The Total Money Makeover, inspires you to manage finances without guilt and stress.
This set does contain not only a book but also an envelope system where you put and take money out depending on your budget.
You’ll get the answers to your questions with his money lessons and valuable information per workbook.
The Power of Now
The Power of Now is another best-seller, with over 2 million sold copies worldwide because of its simple principles.
You can take an inspiring journey to your spiritual self and discover truth and light through personal growth.
Your finances, career, and relationships can all mix up in your head, and you fail to recognize reality and thoughts about reality.
This book offers a different approach to your finances by setting your mind free and enlightened.
I’m in the middle of listening to this book right now. While not directly related to money, living in the present moment and reducing anxiety is very powerful.
The One Week Budget
The One Week Budget is for anyone who wants hassle-free daily money management because who wants to deal with bills?
Tiffany Aliche will teach you a successful way to manage your finances, keep a high credit score, and lessen your debt.
Aliche shares how she stopped paying her bills for two years, and her credit score is still high.
You’ll know how she manages to have good finances and share it with you in less than a month.
The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness
Award-winning author Morgan Housel takes a different approach to teaching financial literacy apart from the math-based system.
Housel takes 19 short stories to share in this book that focuses on how you behave and not how you get the money.
The real world doesn’t let you input numbers in a spreadsheet when you make financial decisions.
You’ll learn how to deal with people at a business meeting or a dinner table, where you discover different perceptions about money.
The Financial Diet
The Financial Diet is a good read for people who don’t care about personal finances but may need personal finance basics.
This financial literacy book is a mere tool to help you tune down your spending a bit or figure out a way to live on a starting salary.
Chelsea Fagan, the writer behind this diet, covers the necessary topics to help you make the best decisions.
You can achieve the perfect recipe with the help of ingredients or tips that Fagan listed in this book.
No One Ever Told Us That
No One Ever Told Us That is another must-read book for young adults who want to know about finance and life.
Once you finish your internships, you are probably at a loss on how you will manage your expenses.
The real world will unveil things that no one ever told you about, but this book can be your guide.
John Spooner, the author behind this piece, is a financial advisor who is more than capable of teaching about monetary challenges and money management.
Your Money or Your Life
Vicki Robin and Joe Dominguez created the Your Money or Your Life book, which became a go-to book for money for over two decades.
The nine-step guide helped many people with their relationship with money; it is your time to experience it too.
Mr. Money Mustache revised the new edition to include current topics like freelancing, online money management, and index funds.
So whether you are starting your financial journey or nearing retirement, this book is helpful to help you with finances.
FAQs – Best Financial Literacy Books
Before listing the best materials to start your reading adventure, you must know precisely what financial literacy means.
Financial literacy is the ability to absorb and apply different financial skills like investing, budgeting, and managing.
It is essential to work with your money, and it takes a long time before you master it.
Learning to be financially literate is a never-ending process because there will be new effective ways to handle money.
However, the earlier you start educating yourself, the more success you’ll have with your finances.
The overall benefit of financial literacy is it allows you to make better decisions when it comes to money.
But specifically, financial literacy helps you avoid major problems, prepares you for emergencies, and helps you achieve your dreams.
a- Avoid Bigger Mistakes
What you think are minor and innocent decisions can turn out to be significant mistakes in the long term.
For example, you opted for a loan with a floating interest rate, and now you have to suffer with increasing interest.
Or your savings isn’t enough to last until you start withdrawing your retirement funds, so you are short on budget.
These decisions may impact your life-long plans; financial literacy can help you avoid this.
b- Prepare for Emergencies
Typically, you only save money for what you expect, like monthly bills, groceries, etc., that you forget emergency funds.
However, emergency funds are crucial because unexpected events can be expensive.
For example, medical emergencies or suddenly losing a job can make a hole in your pocket.
Financial literacy can help you lessen the impact by allowing you to be ready for any financial emergency.
c- Help Reach Your Goals
With a better understanding of money, you can have a clearer vision of your plans and expectations.
You can create a guide to help you set your finances related to your goals and turn the impossible into the possible.
Even though you start learning financial literacy early and don’t have enough money today, your future will be solid and highly possible.
Financial literacy is crucial in everyday life as you make financial decisions almost every day.
When you know how to budget and save money, you can reach your retirement period without debts.
Unfortunately, some people lack financial literacy, tend to have accumulated debts, suffer from bankruptcy, have poor credit scores, and more.
Young people with low financial literacy may have little to no retirement funds.
The reason is why financial literacy is vital because it prepares you to live a comfortable life even after retiring.
Financial literacy starts with a responsible lifestyle because it helps you balance and consider financial choices.
If you have a high financial literacy, you have better savings, investments, financial management, and healthy loan-taking.
In this section, you’ll read a brief step in obtaining financial literacy to help you start as early as now.
a– Make a Budget Plan
A budget plan helps you manage expenses and spend money according to your wants and needs.
You can save money by controlling your spending and putting it in emergency funds.
You want to avoid overspending when trying to save money because it can affect your overall allowance.
You may start creating your budget plan by identifying your monthly source of income and monitoring where you spend it.
Then, list all the fixed and necessary monthly expenses like rent, bills, and loan payments.
Food, entertainment, travel, etc., come later as they are variable expenses that may change from time to time.
Once you track your expenses, it is time to set your financial goals, like saving money for emergency or retirement funds.
It can be short-term goals you want to achieve in a year or long-term goals you plan after retirement.
b– Know Your Credit Score
The credit score is vital because it indicates low financial risk and can pay bills on time.
It can come in handy when applying for loans.
Lenders will find you trustworthy when you pay credit bills on time, which means you can avail of bigger loans if necessary.
However, you should also check your credit report because it can reflect fraudulent entries that may damage your score.
c– Start a Savings Account
Piggy banks are lovely, especially when you are a kid, but savings accounts are even better.
Not only can it help you save extra money, but it will also help you earn little by little with interest offers.
Savings accounts offer security and convenience for your funds so that you can bring your money anywhere.
d– Expect Risk Along the Way
There will always be risks with money, whether you expect something to happen or not.
But it is even more impactful when you suddenly have to shell out funds because of emergencies.
Some people overlook these risks and suffer more when a financial crisis happens.
As much as possible, you should save at least six months of living expenses that you can use for emergencies.
It can be because of a pandemic, job loss, and other events, but you always have to be ready.
It gives you a cushion to lessen the blow on your budget and prevent a significant setback.
e– Plan Your Future
It would help if you always consider your future because no one wants to end up bankrupt during their retirement.
When you start earning money, it is best to make a retirement plan that you follow as early as possible.
You’ll need to forecast the age you want to retire and estimate your monthly spending after retirement.
It would be best if you add medical expenses to your plan because you may have medical emergencies at this age.
Then, you calculate the rate of return of your retirement fund and see if it is a good source of income after tax.
While earning, make suitable investments that will be more than enough for your retirement.
f– Read Financial Literacy Materials
The school doesn’t usually teach people about financing and budgeting, so you must learn by yourself.
Reading financial literacy books can help you know more about handling finances and correcting your spending habits.
The more wisdom you earn, the more confident you can be in making decisions that can positively affect you.
There may be materials online that you can consume, but reading books can be fun and eye-opening.
So in this next section, you’ll see some best finance books to add to your to-read list to increase financial literacy.
Related Reading: How To Make Your Money Work For You – Find Out Here.
Wrapping Up
There are many books to pick from, depending on your financial situation and the authors’ expertise.
Everyone will have different perspectives and tips regarding handling money, but they all help achieve your goals.
The personal finance books in this list are just some of the best options because they have the proper knowledge and practical advice.
Your money decisions will make a massive difference in your life, so you need a guide to change how you think about money.
It is also a great gateway to introduce you to financial literacy until you can share it with others.
So if you finally shortlisted the books you want to read first, get ready for an eye-opening truth about finances.
Source link
#Master #Money #Financial #Literacy #Books #Success