Many people fall prey to financial pitfalls, which makes achieving financial freedom more challenging. The good news is, there are many ways we can learn how to better manage our money to achieve financial stability. One great way is through reading. In this article, we list the best personal finance books for you to consider.
Here are the 20 best finance books you can choose from:
1. ‘Buyology: Truth and Lies About Why We Buy’
Recommended by Tom Blake, Owner, This Online World
“Buyology,” by Martin Lindstrom, is a bestselling book that analyzes consumer behavior and the factors that lead to making a purchase. Setting a budget or saving money is a critical foundation of finance, and gaining insight into what drives purchase behavior is incredibly valuable as a consumer. In “Buyology,” Lindstrom examines the world of advertising and the tactics marketers use to influence consumers, providing insight into the strategies that are behind the promotions we see in everyday life. For anyone with a shopping habit or general interest in personal finance, this is the book for you.
Recommended by Ted Chan, CEO, CareDash
“Traction,” by Gino Wickman, is a good entrepreneurial finance book from an operating perspective. It does a great job tying the important cultural elements of a business to process, operations, and financial metrics. Books are typically centered around culture and entrepreneurial experience or finance and management, but few do such a great job tying them together.
3. ‘The Power of Habit’
Recommended by Nishank Khanna, VP–Growth, Utility NYC
Creating positive habits is the cornerstone to achieving financial freedom and wealth. In “The Power of Habit,” author Charles Duhigg shows the scientific basis of how habits are formed, and how they can be modified to improve our personal and business lives. The biggest takeaway is recognizing triggers to our thought patterns and the rewards that we are looking for by continuing those habits. Once you identify them, a habit can be broken by changing your actions while keeping the triggers and rewards the same.
4. ‘I Will Teach You to Be Rich’
Recommended by Jared Weitz, CEO & Founder, United Capital Source Inc.
Although this book came out close to a decade ago, the general principles still apply. The author, Ramit Sethi, provides step-by-step actions in this book. Each chapter in “I Will Teach You to Be Rich” is something you can focus on to take action and get your finances in order. It is a solid foundation to reference and then grow from.
5. ‘Scaling Up’
Recommended by Kurt Rathmann, CEO & Founder, ScaleFactor
For a book that touches on other areas of business beyond finance, “Scaling Up” by Verne Harnish gives some of the most actionable advice on improving cash flow and profitability. “Scaling Up” focuses on the four major decisions every company must get right: people, strategy, execution, and cash. The book shows entrepreneurs how to achieve freedom through running a business, no matter how big and complicated it becomes.
6. ‘Dollars and Sense: How We Misthink Money and How to Spend Smarter’
Recommended by William Lipovsky, CEO, First Quarter Finance
“Dollars and Sense: How We Misthink Money and How to Spend Smarter” is written by Dr. Dan Ariely and Jeff Kreisler. Filled with pearls of wisdom, this book forces you to reconsider how and what you spend money on. When you read this book, you’re made aware of many bad money decisions you’re making. The authors challenge things most people do and why they don’t make sense.
7. ‘The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying’
Recommended by Kosei Okubo, CEO & Founder, Founder’s Guide
In “The 9 Steps to Financial Freedom,” author Suze Orman challenges readers to face their financial fears. She emphasizes the importance of financial planning for the future. The book shows a three-pronged approach, which tackles the mental, physical, and spiritual issues that keep people from achieving their financial goals.
8. ‘Rich Dad Poor Dad’
It’s important to preface this recommendation by saying that “Rich Dad Poor Dad” by Robert T. Kiyosaki simplifies quite a few concepts. However, this is exactly what most readers are looking for and it sets up a solid foundation of the basic principles for personal financial management. The concepts can also be applied to business, investing, and other ventures. It’s a book that will get you interested in finance and is a great starting point for anyone who wants to learn.
9. ‘Broke Millennial’
“Broke Millennial” provides step-by-step guides on how to get your financial life together. It doesn’t just cover credit card debts, investing, and dealing with budgeting. It tackles tricky money matters and situations that most people experience in their day-to-day lives.
10. ‘The Total Money Makeover’
The “Total Money Makeover” offers a simple, practical, seven-step plan to help readers get rid of debt. It boils down daily money management to four basic tenets that are easy to grasp. Mastering them takes time and dedication, but if you stick to the methods described, it removes mountains of stress, so you can pay down debt quickly and prepare for future goals.
11. ‘Think and Grow Rich’
“Think and Grow Rich,” by Napoleon Hill, was written as a personal development and self-improvement book. The book is more about increasing income and it aims to help people succeed in any line of work. “Think and Grow Rich” talks about the laws of success using 13 principles known as the “philosophy of achievement.”
12. ‘The Intelligent Investor’
“The Intelligent Investor” by Benjamin Graham is focused on value investing. It emphasizes the group approach, which is trying to buy groups of stocks that meet simple criteria for being undervalued—regardless of the industry and with very little attention to the individual company. This is best for individuals who want to learn how to get started with investing in the stock market.
13. ‘Get a Financial Life: Personal Finance in Your Twenties and Thirties’
Written by Beth Kobliner, “Get a Financial Life” is designed to guide younger adults on personal finance. People in their twenties and thirties need help in getting their financial life in order. Kobliner shares insights and actionable advice to help the younger generation form healthy financial habits that will last a lifetime. It tackles issues like how to decrease debt, avoid money mistakes, and navigate the world of personal finance.
14. ‘The Simple Path to Wealth’
“The Simple Path to Wealth,” written by J.L. Collins, provides a simple map, encouragement, and the tools to forge your way through investing with confidence. It covers behavioral techniques and technical strategies about investing and building financial wealth. The book covers advice and tips on how to make investing simpler than you think.
15. ‘The Four Pillars of Investing’
In “The Four Pillars of Investing,” author William Bernstein explains the four essentials of investing that will help independent investors build a strong investment portfolio. It clearly explains the four essential topics that every investor should master: the relationship of risk and reward, the history of the market, the psychology of the investor and the market, and the folly of taking financial advice from investment salespeople. It shows you how to determine your own financial direction and build long-term wealth for you and your family.
16. ‘The Law of Divine Compensation’
Marianne Williamson reveals spiritual principles that can help you overcome your financial stress by unleashing the ultimate divine power. She focuses on driving your financial stress away and unleashing the divine power of abundance through “The Law of Divine Compensation.” This book provides a different perspective to seeking and reaching financial freedom.
17. ‘Secrets of the Millionaire Mind’
In this book, “Secrets of the Millionaire Mind,” author T. Harv Eker identifies your “money and success blueprint.” According to Eker, we all have a personal money blueprint ingrained in our subconscious minds, and this blueprint will determine our financial lives. Part I of the book explains how your money blueprint works. You will learn how to identify and revise your own money blueprint to create success and keep it going. The second part of the book introduces the 17 wealth files, which describe how rich people think and act differently than most poor and middle-class people. He includes action steps to practice in the real world to help you increase your income and accumulate wealth.
18. ‘The Investment Answer’
“The Investment Answer” is written by Daniel Goldie and Gordon Murray. It provides a general guide to investment and tackles the five investor decisions: do-it-yourself, asset allocation, diversification, active versus passive, and rebalancing. The authors provide a fundamental explanation for each of these decisions. They also offer tips on how to gauge the performance of a portfolio, as well as information about hedge funds, private equity, and commodities.
19. ‘Unconventional Success: A Fundamental Approach to Personal Investment’
In “Unconventional Success,” author David F. Swensen provides evidence and explains how the mutual fund industry constantly fails the average investor. Aside from excessive management fees, the constant changing of portfolios hurts most individual investors. Swensen offers an investment alternative that promotes well-diversified, equity-oriented portfolios that reward courageous investors. In general, this book provides readers with the guidance and financial knowledge for improving their financial future through personal investing.
20. ‘Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School’
“Millionaire Teacher” tells the incredible story of how a teacher built a million-dollar portfolio, and offers tips on how you can, too. Andrew Hallam, a school teacher-turned-millionaire, shares his experience and insights on how average people can build wealth in the stock market by shunning the investment products peddled by most financial advisers. He also provides tips to avoid the get-rich-quick schemes from an ever-widening, self-serving industry to help you build wealth. This book helps readers understand how the stock and bond markets really work, arming you with a psychological advantage during market downturns.
Learning how to manage your own finances is a big step toward achieving your financial goals. However, there is no hard-and-fast rule when it comes to reaching finance success. There are different types of finance books available in the market that can help you get educated. Identify what you need to learn first so you will know which finance book suits you best. Make sure to check the above list of best finance books to help you get started.