How to master finance and become wealthy?
It’s simple, you first need to educate yourself, and there’s no better way of doing so than by reading tons of great personal finance books.
The Best Financial Books for Beginners To Read
Naturally, you’ll also need to surround yourself with people in the know, who have your best interest at heart, but let’s not jump too far ahead of the story.
The problem with this tactic is that there are now thousands of financial literacy books out there, and it’s hard to choose the best ones.
Luckily for you, I already got through hundreds of them, and thus, I believe I can give out some honest recommendations from the heart.
Here are some of my personal favorites, in no particular order.
1. Adulting: How to Become a Grown-up in 468 Easy(ish) Steps
Would you be willing to accept financial advice from a 28-year-old?
If you’re anything like me, that idea seemed preposterous at first. However, I still decided to give it a go.
The young author of this book is a lady named Kelly Williams Brown, and she decided to put her own personal twist on this topic.
Every great journey starts with a single step, and Kelly wasn’t afraid to take as many steps as she needed on her way to complete financial independence.
At the very end, she stopped at 468, a point where she was happy to declare herself as an “adult.”
I’ll be honest with you, some of these steps seemed quite trivial, but at the end of the day, some people can really appreciate the exact blueprint to follow. One thing’s for sure, you will laugh and enjoy this easy read. If you dare yourself to approach this book with an open mind, you might walk out with a completely different mindset.
And no, in case you were wondering, you don’t have to be in your teenage years to fully appreciate it.
Regardless of your age, chances are, you’ll always be coming back to this awesome read.
The best way to describe it, in my mind, is to consider it as a friend who seemingly always has all the answers.
2. The Wealthy Barber
Wow, what an interesting name, right?
Still, if you’ve done your research on great financial self-help reads, I’m sure this one caught your attention early on.
One thing I can appreciate about the author David Chilton is the fact that he keeps trying to improve the formula, and thus, we came to the third edition of this bestseller, which is currently available.
Unlike most of the other publications within the financial niche, Chilton didn’t focus on how to make the most money possible.
In fact, his goal was to showcase that even people with average salaries can make a fine living for themselves, just by making sound decisions ahead of time.
One other thing worth mentioning is that Chilton focused on the big picture, and also included a section on how to create your retirement plans.
If you are searching for an easy-to-comprehend read to get you into the game, this is a great place to start.
3. I Will Teach You To Be Rich
A six-week training program to become financially independent?
To me, that sounded more like a fitness than a finance book, but excellent reviews practically forced me to see what the author Ramit Sethi had to say on the topic.
Luckily, I also belonged to the target audience, as this read is primarily intended for individuals between the ages of 20 to 35.
Sethi claims that the key to a stable financial plan is to approach things without guilt, allowing yourself to enjoy the journey.
At a certain point, if you start to follow his path, you will become automatic at making sound financial decisions, and the whole process will come completely naturally.
Judging from my experiences, this is a vital component, as the most complicated plans start wearing down on you after a while. You wouldn’t want to make it feel like work.
By taking a steady approach, Sethi is teaching us how to become more financially savvy one week after another.
After you complete the six-week course, you are guaranteed to walk out with a much better understanding of credit cards, how to manage your bank account, why it’s important to splurge on the stuff you have a passion for, and how to invest smartly in the process.
4. If You Can: How Millennials Can Get Rich Slowly
Looking for something short and sweet? Then this read is a must!
There are no excuses this time, no matter how busy you are or how short your attention span might be, you should be able to go through this 50-page masterpiece with ease.
William J Bernstein did a great job detailing the hurdles one has to jump over in order to get into the world of investments.
Truth be told, this is not a read I would recommend to absolute beginners, but if you have at least some knowledge on this topic, you will be blown away by the quality of content found in this condensed publication.
People around the globe cannot stop raving about how terrific it is, and I would gladly support those claims.
What’s more, when it comes to financial books, this booklet is dirt cheap, and if you are being serious about your investments, you absolutely cannot miss it!
5. Personal Finance For Dummies
You’d think that being called a dummy would insult a whole lot of people, but as it turns out, these self-help books were constant bestsellers, so there must be something to it.
All jokes aside, but I don’t mind being called a dummy in order to get the best advice from a financial counselor guru such as Eric Tyson.
Are you feeling under pressure due to that impending doom is known as the high-interest debt?
Well, this book offers some techniques to help you get on top of it.
Not only that, but Personal Finance For Dummies will also teach you how to track your spending, and develop a strategy for the future.
What I like best about this publication is the simple English that the author used, without any fancy terminology that’s hardly comprehensible to the general public.
Well, it should come as no surprise, as Tyson already wrote several books for dummies. You can say that he really cracked the code.
6. The Simple Path to Wealth: Your road map to financial independence and a rich, free life
It’s always better to be uninformed than misinformed.
I believe it’s this exact sentence that was constantly popping up inside the head of the author JL Collins while writing this book.
It’s hard to put your trust behind a book, when you don’t even personally know the author behind it, but this publication has quite an interesting backstory.
It was constructed based on letters Collins used to send to his daughter.
Naturally, most of those letters contained financial advice, but Collins also had to wrap it all up in a neat package, as all the finances were pretty dry and boring to his, then teenage, daughter.
Besides the obvious things, such as strategies on how to amount the wealth in the first place, the author takes a deeper look behind the scenes, trying to explain why having “F-you money” is the thing we should all strive toward.
If you’re tired of all the fluff content that everyone keeps pushing upon us these days, and you’re looking for data-driven facts, definitely check out this gem.
7. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
In case you have decided to search for this publication now, you’ve probably seen that it currently sells its ninth edition!
That’s right, it would appear that the author Burton G. Malkiel is a very detail-orientated man. Well, I guess any decent financial advisor should be.
However, being very detail-orientated can sometimes bring you the title of being very boring as well.
I won’t lie to you, this book sure has its dry bits, there’s no going around it.
Despite those sections, if you look at the whole publication, I would gladly claim that some of the information you can find here, cannot be found anywhere else.
In the world of finances, that is a rare gift that should be celebrated.
If you think that you already know everything about the stock market, prepare to have your mind blown to pieces!
After reading these battle-tested examples, nothing will ever be the same. And that’s a good thing!
8. Rich Dad Poor Dad: What The Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not!
Ah, finally, here’s a man who’s not afraid to talk about assets.
In a way, that message resonates through the entirety of this bestseller, written by Robert T. Kiyosaki.
Now, try to understand just how difficult of a job Mr. Kiyosaki faced, trying to tell people that they’ve been living their lives entirely wrong.
You see, most people consider their home as their most prized possession, but Kiyosaki considers it more of a wasted opportunity.
Instead, he advises his audience to invest in things such as Businesses, Real Estate, and Paper assets.
Additionally, he insists that cash flow is the king, and that net worth is a figure which has no real value anyway.
With that in mind, why would I recommend this book?
At the very least, it will give you an entirely different perspective on life, as it might lead you to alter your long-term goals and motivate you to challenge the existing order.
It’s never a bad thing to think outside the box every once in a while.
If you’ve been following my blog for a while, and you know a thing or two about my life, you probably already noticed that I didn’t exactly follow the rules provided by this book.
Still, don’t think that just because you don’t agree with the basic principle there are no valuable lessons to learn from the whole thing. Quite the contrary, in fact.
9. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
The road to getting wealthy requires tons of effort, and it’s not easy to get there.
Heck, if it was, wouldn’t everybody already be there?
When you put it this way, it almost seems like a mission impossible, as if it was only meant for a specific number of people.
If you’re in this club congratulations, but if not, guess what, you ain’t never getting in there.
No, that couldn’t be the case, right?
If we were just able to draw some parallels between wealthy people, perhaps we would be able to find the pattern?
With that achieved, would it be possible to work on those things and reap massive success afterward?
All of these complicated questions can be answered if you just read this tremendous publication.
It points to seven common traits found in the wealthiest people in the world, and explains how you can get there eventually, if you start working on it today.
Are you willing to put in the work?
10. The Richest Man in Babylon: (The Success Secrets of the Ancients – the Most Inspiring Book on Wealth Ever Written)
A self-proclaimed most inspiring book regarding financial well-being ever?
Talk about high expectations. Luckily for the author, George S Clason, the audience worldwide tends to agree with that statement.
What most of these finance books struggle with is the problem of becoming eventually outdated.
However, chances are that the problem of procrastination will be around for as long as the human race roams the earth, so there are no worries regarding this publication.
Even though it’s published quite some time ago, this marvel still contains a bunch of useful information that can get your life back on track in an instant.
When it comes to managing personal finances, it’s generally regarded as a classic you shouldn’t miss.
Before I eventually got around to reading it, I had some prejudice, as I thought it would be just another one of those self-help motivating pieces that offered no real-world substance.
Boy, was I wrong! Even nowadays, when I’m a grown man, with many business ventures behind me, I still come back to this masterpiece from time to time, in seek of that eternal motivation. It never failed me thus far.
11. The Feminist Financial Handbook: A Modern Woman’s Guide to a Wealthy Life
A colleague of mine, Brynne Conroy, in 2018 wrote the #1 Amazon New Release The Feminist Financial Handbook.
If you’ve ever felt like all the money advice you read is for those who have already “made it,” this book is for you.
It looks at the effects intersectional oppression–whether that be classism, racism, homophobia or sexism–have on our personal economies.
But rather than having a “woe is me” attitude, the pages in this book include ways to work around the many financial obstacles you may face.
As you read, you’ll be both inspired to change the system as a whole, and inspired to take control of your personal finances as you work within that system.
It’s a source of empowerment that doesn’t diminish the real fiscal struggles everyday Americans live through.
12. Mom and Dad, We Need to Talk: How to Have Essential Conversations With Your Parents About Their Finances
All of the books I have recommended focus on improving your own finances and growing your wealth.
But as every adult will discover, they’ll have to get involved in one way or another with their parents’ finances.
As parents age, adult children often have to step in and help them with money matters. And when parents die, the children have to deal with what’s left behind.
This book by award-winning financial journalist Cameron Huddleston helps you get over your fears of having money conversations with your parents and walks you through the process step-by-step.
There’s no other book out there like it, and it should be required reading for anyone who will have to get involved with their parents’ financial lives – which is pretty much all of us.
13. Napkin Finance: Build Your Wealth in 30 Seconds or Less
If you’re new to personal finance and the thought of diving into a long, word-heavy book is intimidating, Napkin Finance might be the best personal finance book for you to start with!
It covers basic financial concepts in bite-sized (well, napkin-sized) lessons, with simplicity and humor. Visual learners will appreciate the infographics and illustrations.
However, it’s worth repeating that this is definitely a basic book. It may be one of the best financial books for beginners, kids, and teens, or anyone who wants a simple crash course to get their financial knowledge started.
If you’re more advanced, you’ll likely find most of the information repetitive. Napkin Finance does make a perfect gift for a high schooler who’s getting interested in money.
14. Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required
If JL Collins is too conservative for you then this is a must-read. This is one of those “from zero to hero” books. It is a story of how Kristy Shen achieved financial independence starting from zero with no business to support her on her way.
It is a good motivational book with a story that seems easy for anyone to replicate but some claims are questionable. Ie. she said that dividends can shield you from market volatility.
The book offers practical advice and strategies for achieving financial independence, with an emphasis on frugality, smart investing, and prioritizing experiences over material possessions.
Key principles discussed in the book include understanding the concept of ‘enough,’ which involves determining what you truly need to live a fulfilling life and learning to differentiate between wants and needs. The book also encourages saving aggressively by cutting expenses, increasing income, and investing wisely.
Investing in low-cost index funds is recommended as a passive investment strategy, which provides diversification and minimizes risk. The authors advise minimizing taxes by utilizing tax-advantaged accounts and strategies to optimize investments.
Embracing geo-arbitrage is another strategy presented in the book, which involves considering relocation to lower-cost areas, both domestically and internationally, to stretch your money further and reach financial independence faster.