7 Best Personal Finance Books for Financial Success
Do you want to know the 7 best personal finance books to improve your finances?
Nowadays, there is a lot of visual and audiovisual material that you can use to improve your financial life, however, it can be delightful to see how many books you have to read to learn how to manage your money and build wealth.
That is why, in this opportunity, we have made you a summary of the 7 books gain financial independence and each of them will help you not only to get more business ideas or money or your life income, but to avoid mistakes that as you build your relationship with money as a beginner.
Let’s get started!
Written by
- Redaction Team
- Personal Finances, Professional Development
Table of Contents
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The Richest Man in Babylon - Best Finance Books of All Time
One of the classic books to learn finance from 0 and become a finance expert, because it teaches you about savings, finances, the most common mistakes people make when managing their money and experiences in the form of very striking stories.
The book written by George Clason, shows us different stories about people who want to achieve financial freedom or wealth, leaving us in evidence the common mistakes and most common excuses we use to not achieve it.
One of the main ideas of the book The Richest Man in Babylon is saving, and it shows us that even a minimum wage earner can accumulate great wealth if he sets his mind to it and has enough motivation, clarifying that it is necessary to make our money work for financial autonomy.
He also invites us to create a budget that allows us to have more income to our expenses and to identify those expenses that are not necessary or that we believe are necessary in our life.
In addition, he invites us to seek professional advice on high investments, to know if they are really profitable or if there is too much risk to lose our money.
Summary of The Richest Man in Babylon
There are many interesting stories that you can find in The Richest Man in Babylon, one of my favorites is the one where he compares two men with the same job and salary, with the difference that one saves much of what he earns and the other absolutely nothing.
You identify so much with the mistakes in money management with some of the people in the story and it opens up a clear path for us to begin a better use of income.
One of the most striking characters in the book is Arkhad, a man convinced to become the richest man in Babylon and in one instance he has to work for a whole day and two nights, with the promise of getting financial advice from one of the richest men at the time.
The richest man tells him that he changed his money mentality, when he began to want much of what he earned to belong to him, to which Arkhad is stunned as it is obvious that the income belongs to him.
And it doesn’t, explaining the money sage: There comes a time when expenses make you a slave to money and from then on he allocates at least 10 percent of what he earns to his savings.
To all this, he also tells you that money is only a tool to enjoy life, it is good to want to get more, but being a slave of a tool that will not serve you for the hereafter does not make much sense.
Undoubtedly, one of the best books you can find to clean up your finances.
Think and Grow Rich - Best Personal Finance Book
Napoleon Hill has very good books, but Think and Grow Rich is one of the most important financial books you should read.
He points out that people don’t get rich by working, if that were the case, the workers would be the rich and those who dedicate themselves to creating ideas or investment projects would have trouble paying their debts.
And although the book is almost 90 years old, his advice is still valid today and I am sure that knowing it will give you not only ideas, but also a more positive attitude to carry them out.
If you want a summary of Think and Grow Rich by Napoleon Hill, we can start by saying that all wealth started with an idea. Therefore, having ideas or fostering your creativity can give you projects to increase your income.
Another of the tips expressed in this book is the conviction and very clear in the goals you want to achieve, whether to get more customers or close more important sales, the ideal is to have it clear and apply the knowledge or experience you get that not everything remains on paper!
Secrets of a millionaire mind
T. Harv Eker is the author of this brilliant work to improve the finances and it was created in the year 2005.
First of all, you should know that T. Harv Eker is a person who started working at a very young age out of necessity, because his family moved from Canada, where his ancestors were European immigrants, and together with his family he emigrated to the United States.
There he started many businesses, but only the fitness business was successful. However, bad decisions and lack of knowledge in finance led the business to bankruptcy and he dedicated himself to see what differentiates the rich from the poor to make money.
There he was surprised at how different they are in thinking, as the rich are committed to having more money and the poor simply wish they had more money.
The rich look for all the resources necessary to carry out their idea and the poor, excuses. For example, “I don’t have money”, “I don’t have time”, “it’s too risky”, etc.
Undoubtedly, this is a book you cannot miss if you want to avoid this limiting mentality.
Rich Dad, Poor Dad
A classic of financial books that you must know today and tells the story of Robert Kiyosaki as a child and teenager, told by himself and how he realized “the rat race”, the name he gave to the lifestyle of many people who live from expense to expense and do not make their money work for them.
Rich Dad, Poor Dad written by Robert Kiyosaki begins with the idea of a very young Robert, who has his biological father graduated from college, but with a lot of debt and can’t afford luxuries or vacations.
However, in his quest to earn more money and his young age, he is advised to talk to his best friend’s father, who many claim will be rich in a few years.
This “rich dad” teaches him how to manage his money from scratch and teaches him lessons about working today and motivates him to come up with ideas to make his money work for extra income.
It’s a great lesson for young Robert, who explains that his poor father had studied all his life to be a professional, but his income was only enough to cover debts and save a little.
Conversely, his poor father, who had only completed high school and was well on his way to becoming the richest man in Hawaii, soon disregarded his poor father’s financial teachings to escape the “rat race”.
Today Robert Kiyosaki is one of the richest investors in the world, who has shared books with the likes of Donald Trump, written best sellers and even his wife has financial freedom.
Rich Dad, Poor Dad Reviews
The opinions about this book are very positive, which is why it is a best seller known all over the world and has invited its author and other people to create more books like this one.
It is excellent when it comes to showing mistakes of an outdated generation, for example, there is a lot of focus on the lack of financial education in schools or universities, creating fear with phrases like “if you don’t go to college you won’t have a good salary”.
And we see how in the book Robert’s father was a person with many degrees and academic achievements, but who could not satisfy his family with luxuries or go on vacations.
In other words, from a young age we have been indoctrinated to work for a company and not to own our own business or to invest.
The Millionaire Next Door
Thomas. J. Stanley impresses us with a book that relates the lifestyle of the rich, against the lifestyle of the poor.
For example, the rich spend much less than they earn and invest their savings, while the poor spend money on brand name clothes and items they don’t really need.
He also focuses on the excuses of the poor, expressing that he knows many and they say “my parents didn’t teach me financial education, but neither did the rich… They were forged by their own effort and experience.
In addition to teaching his family to be self-sufficient, so that they not only stay with what they have learned, but he invites his family members to obtain financial freedom.
Likewise, it has many chapters focused on taking advantage of the market and its opportunities, where there are many rich people not for having a star product, but for knowing how to take advantage of an opportunity.
The 4-hour work week
A highly recommended book to clean up your finances, because it tries to change the mentality that we must work for 8 hours or more to have a good salary.
However, those who have really worked for more than 8 hours, know that they do not have time for their family or to dedicate themselves to what they like.
If this is the first time you hear this, you will surely ask yourself “How?” and the author of this book, Timothy Ferris has key ideas to achieve it.
The first is to improve your productivity by explaining the Pareto principle, which states that 80 percent of the actions you take are due to your actions.
Therefore, completely eliminate your distractions at work, learn to say no during working hours and prioritize your tasks.
Second, take advantage of technology to automate your work, making it easier and more productive. Don’t be afraid, because identifying opportunities to improve your work will bring you better results.
The last step is liberation, where you can take advantage of your free time and it is recommended that you not only use it for leisure, but to identify other opportunities for extra income or learning.
The Psychology of Money
Last and not least in our list of books to clean up your finances, we have The Psychology of Money, written by Morgan Housel.
First of all, we should know that Morgan Housel won the Best in Business award several times, was a columnist in The Wall Street Journal and a finalist for the New York Times Sidney Award twice.
In this book, the author indicates that it is not a matter of knowledge or learning that guarantees your success in business, but the psychology you use.
To this he adds that a Harvard graduate may be going broke, but a high school graduate may be about to make a million dollars right now.
To confirm his theory, he adds many anecdotes of how a positive attitude, more risk-taking, but with a cool head, can give you better results when it comes to business ideas or extra income.
You will also find anecdotes from personalities in finance such as Bill Gates or Warren Buffet that you may not have heard of.
That’s it! Now you have the 7 books to clean up your finances. Which one is your favorite?
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