Table of Contents
Introduction
If you ever want to improve your personal finance abilities and financial net worth then you need to cultivate a positive habit of reading. To become an empowered individual who understands the basics of finance, including how to create passive income, the importance of budgeting, how to build wealth and retain it then you need to create a good habit of reading. This does not mean that you should rush to your nearest library or purchase the latest edition of the Bridgerton books but rather create a selective playlist suited to your personal finance needs. The books included in this list are specially curated as the best personal finance books to read in 2021 and cover a range of topics and themes. Some of these books are centered on the five foundations of personal finance while others on wealth creation and retainment. To become more empowered you can combine some of these books with personal finance podcasts. A simple search will reveal a list of the best personal finance podcasts in 2021. Some of the results include the best millionaire mindset books while others include a compilation of the best-selling books on wealth creation. Regardless of the way you choose to determine which books suit your preferences, it is evident that personal finance reading is an integral process in the pursuit for financial well being.
That being said, here is an exhaustive list of the best personal finance books to read in 2021. Most of them are available on Amazon and can also be purchased as audiobooks on audible.
‘I Will Teach You To Be Rich,’ by Ramit Sethi
In this book, Ramit Sethi explores how an individual can earn and save more to live a rich life. The fundamental teachings in this book include that you did not have to be an expert to become financially stable, you need to become financially empowered at an early age, you should spend extravagantly and the things that you love and cut expenditure on those that you don’t, you should use your finances to design your ultimate rich life, and there’s always a limit to how much you can cut on your expenses that there’s no limit on how much you can earn. This book is suited for beginners looking to improve their financial situations.
Raising Your Money-Savvy Family for Next Generation Financial Independence
This book is available as both a paperback and an audiobook and is written by Doug Norman and his daughter Carol Pittner. The book contains ways through which an individual can motivate the kids to better manage their money, how parents can begin empowering the kids at a young age by allowing them to make mistakes which are considered cheaper during this period than when they’re in the workforce and provides a way through which parents and children can validate their feelings regarding money and the mistakes that they have made. This is a family-centric book that seeks to teach both parents and children how to manage money by understanding the significance of making mistakes at a younger age and exposing children to financial Management information at an early age.
‘The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich,’ by David Bach
If you’re looking for a book that provides a step-by-step action plan on personal finance management then this is the book for you. David Batch provides an actionable step-by-step plan through which individuals can build wealth without being disciplined and by solely relying on fixed percentages, small payments, and automated transactions. some of the key lessons in this book include saving small amounts every day as it can go a long way in improving your financial status, ensuring that you pay yourself first before you get out other bills and expenses which will eventually help you take care of your financial future, and understanding the significance and importance of automatic payments as they allow individuals to invest in a disciplined manner without being disciplined themselves. This book is more suited for a beginner investor or individual who struggles with budgets released from paycheck to paycheck and is trying to find a way through which we can improve his financial well-being.
The Paper Solution
This book comes with a unique perspective on personal finance and management. The author examines how organization and clutter can mean the difference between success and failure. A proven step-by-step actionable plan is provided for readers to determine papers that should be shredded, those that should be saved, and how to sort what is left behind. This book on organization provides a method through which you will be able to learn the documents that you must hold onto and their implied meaning, those that you should dispose of immediately, and how to overcome bulky filing cabinets and disorganization by creating a system where your vital documents are accessible and portable. This organization plan is based on something that is referred to as the Sunday basket which is a box that will contain the final papers that are organized according to the proposed system. You might ask yourself how is organization relevant to personal finance? Well, it has been proven that a more organized individual is more likely to make astute personal finance and other decisions. This book is more suited for a beginner or novice looking for a way to improve their organization system as a way of enhancing their personal finance journey.
Rich Dad Poor Dad
This book is regarded as the poster child for personal finance and wealth management. The author of this book Robert Kiyosaki is a self-made millionaire who shares his secrets on wealth acquisition that he learned from his father and his friend’s father. In this context, his friend’s father was the rich Dad while his father was the poor dad. The book contains an array of personal finance information ranging from simple to complex terms. Some of these themes include definitions of assets and liabilities, how to get rich without making a lot of money, and an in-depth explanation for parents on why education systems are not based on personal finance empowerment of children. This is one of the oldest books in this category and has existed for more than two decades. However, each new edition contains updates that Kiyosaki deems important according to the current financial situation.
This book is suitable for individuals who want to learn about wealth acquisition and also want to empower the children on how to become more financially stable in the future.
The Fearless Money Mindset
If you’re a beginner investor then you probably come across some of the fears that are mentioned in this book. Most people are often afraid of losing their money when it comes to money management or investment which often impedes their growth. This book provides its readers with seven principles and tools through which one can eliminate any fears regarding money management. These principles and tools are suited for different kinds of individuals regardless of their current income. You might be struggling from paycheck to paycheck or have a 7-figure salary yet you still have fear when it comes to dealing with your money. The viable solutions offered in this book will help you achieve financial success by eliminating fear and having a fearless money mindset.
Why Didn’t They Teach Me This in School: 99 Personal Money Management Principles to Live By By Arian Simone
This book offers similar teachings to that of Robert Kiyosaki’s Rich Dad and poor dad as it is based on the notion that most schools do not teach their students how to manage money and other personal money management principles that people should live by. It is often argued that the fallacy of weakness that comes with the education system is partly attributed to capitalism that requires a highly skilled workforce that supports the empowered individuals who have a more intimate idea on how to manage money. The book also provides an inside view of the author’s life experiences, business wins and failures, and adventures that have affected and impacted both her personal and professional journey. If you’re looking for a book that offers relatable situations then this is the one for you and is available on Amazon.
Secrets of Six-Figure Women: Surprising Strategies of the Successful High Earners by Barbara Stanny
Have you ever wondered how some high earners consistently succeed at Business ventures yet when you try implementing the same formula you always fail or come up with the relatively negligible success outcome? If so then this is the book for you as it offers 7 key strategies that successful female high earners employ in their daily lives. These strategies include profit motive, audacity, resilience, encouragement, self-awareness, non-attachment, and financial know-how. It is important to note that most of these strategies underpin personal finance and can be found across most of the books included in this list. This book is both available as an audiobook and in paperback format.
The Behavioral Investor by Daniel Crosby
Dr. Daniel Crosby the author of this book creates a premise that to be able to be successful at investment and personal finance one must understand human nature because markets are made up of people who are often driven to create profit. Crosby argues that human beings are sociologically unable to not be good at investing, neurologically wired to be impatient and hungry, and physiologically created to be subject to failure. If you are looking for a book that will help you modify your behavior to fit a positive one that can help you improve your financial well-being then this is the book for you. This book contains ways through which you can do a personal audit and determine which characteristics of features make you more susceptible to failure and which ones can be enhanced to become most successful.
How to Retire Happy, Wild, and Free: Retirement Wisdom That You Won’t Get from Your Financial Advisor by Ernie Zelinski
Retirement security is an issue that is becoming more significant in the modern world. This is because most people do not consider the possibility of retirement as they are stuck in a vicious cycle of working to be able to supplement their current bills. Studies have consistently shown that more and more people are reaching retirement age without any retirement nest egg. Most people who are employed and have been contributing to retirement funds often become subject to financial deficits making them deep into the retirement funds. This book provides a guide through which you can understand the significance of saving for retirement, how you can gain the courage to retire at an early age by investing your money in the right channels, how you can generate purpose in your retirement life through pursuing creative channels, and how you can follow your dreams instead of contributing to building someone else’s dreams. This is an important read for everyone as retirement is a topic that is increasingly becoming significant as we often ignore it in pursuit for financial well-being
The Total Money Makeover Classic Edition: A Proven Plan for Financial Fitness by Dave Ramsey
If you are familiar with personal finance management then you probably come across Dave Ramsey. Ramsey is a renowned expert in personal finance and debt management and has authored several books that are quite important in one’s journey to financial well-being. Ramsey posits that financial well-being cannot be achieved if you do not take into consideration of your debts. As such, this book offers an actionable plan through which you can get out of debt and improve your overall financial well-being. The book also debunks some common myths associated with money and examines some of the illusions and fallacies associated with the American dream that often makes people acquire more debt. This is a must-read for anyone interested in becoming more financially stable and having an actionable and clear plan on debt management and acquisition. It is available on Amazon as a hardcover and paperback.
Die with Zero by Bill Perkins
The author of this book, Bill Perkins, is a hedge fund manager and entrepreneur who examines their idea of optimum retirement strategies. The fundamental idea behind this book is that individuals who have saved enough money to fund their retirement and can give back to their families and charities should begin focusing on generating more memorable life experiences. This idea is based on nine rules or philosophies including the need to maximize positive life experiences, investing in experiences at an early, aiming to die with zero, using all available tools to plan your future, always giving money to your kids or charity at an early stage, not living life on routine or autopilot, planning one’s life in terms of seasons, knowing when to, and taking big risks at an early stage of your life. If you’re looking to live a more meaningful life while simultaneously taking care of your financial well-being, this is the book for you.
Money: The True Story of a Made-Up Thing by Jacob Goldstein
In this book, Goldstein examines the fundamental ideologies of money including the fact that it often seems cold and mathematical and exists outside the realm of human relationships and social interactions. However, in actuality money is a made-up thing or a shared fiction and is unalterably socially. The examination of the fundamental identities that surround the exchange and creation of money is made with the sole purpose of creating a more relatable experience to associate it with. There are several case studies included in the book including that of Kublai Khan who was the leader of the Mongol Empire during the late 1200 and is regarded as an early example of innovation as he created one of the formal paper money systems. The main idea behind this book is why money matters and its future in the digital realm.
You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life by Jen Sincero
This personal finance book explores some fundamental mindsets that are integral in achieving financial well-being. This mindset include that you are perfect and to think anything less of yourself is pointless, you are responsible for your actions and not responsible for the reactions of others, you are unconditionally loved, you should not base your self-worth on whatever and thinks about you because by doing so you hand over the power to other people and become dependent on their validation, you should not apologize for who you are as an individual, nobody ever accomplished anything worthwhile by being in their comfort zone, the only outcome that can be considered a failure is that of quitting, you should always consider that you have been blessed with all opportunities and ideas around you, when you are in a state of gratitude and aware of all the great things that surround you then it is much easier for you to believe that there is greatness that is yet to be manifested and available to you, and when we are able to share our sole purpose in life then we are in alignment with the best and powerful versions of ourselves.
When She Makes More by Farnoosh Torabi
We live in a patriarchal society where it is often expected for men to make more money than women. However, over the past decades, women’s empowerment through education and other channels has created an appreciated system where women are now able to earn equal to their male counterparts or even more in some situations. This book considers the situation where a woman makes more and provides 10 rules for breadwinning women. This book is considered an ultimate guide for women who earn more than their male counterparts as they are often subjected to higher risks for burnout, infidelity, and divorce. This is a must-read for women seeking to create the perfect balance between their personal and professional lives and for men who want to support their spouses and their journey to financial greatness.
Women with Money: The Judgment-Free Guide to Creating the Joyful, Less Stressed, Purposeful (and, Yes, Rich) Life You Deserve by Jean Chatzky
This personal finance book provides an actionable way through which women can chart a pathway to a joyful and purposeful life by exploring the relationship with, taking control of their finances, and using their money to create the life that they want. The author of this book provides readers with a way to reach they can implement tactical solutions in their workplace to get paid what they deserve, how they can be inspired to begin businesses, invest for their future life, retain and enhance their finance portfolios, raise independent and confident children, and Foster secure relationships.
Don’t Retire… Graduate by Eric Brotman
Don’t retire graduate is a book that provides you with a degree to financial freedom. This book provides information regarding the three main strategies that can help you balance your debt while still paying yourself, explains the significance of undertaking a course in risk management and insurance in helping you save for your future financial casting, and selects the people who will live in it, contains a 12 relationship matrix that will help you determine if you should continue engaging with your financial advisor or drop them, provide a crash course in retirement accounts and IRAs that will help you maximize your peak earning years, and explains how the 21 extra credit assignment in risk Management, financial independence, debt and cash management, and other subjects will help you become the top of your class. This book takes a unique approach to personal finance management by providing access to a full syllabus of courses that will help you enhance your skills in money management
The 7 Habits of Highly Effective People by Stephen Covey
Our list will not be completed without mentioning the seven habits of highly effective people by Stephen Covey. This book is regarded as an important book for any person looking to enhance their management and finance skills. So what are the seven habits of highly effective people? These habits include the ability to be proactive, being able to begin things with an end in mind, the ability to Prioritize and achieve the most important goal, the skill collaborating more effectively through building high trust relationships, the habit of influencing others through developing a deep understanding of their needs, the habit of synergizing and increasing one’s motivation, energy, and work/life balance.
Other notable mentions include:
- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
- The Intelligent Investor: The Definitive Book on Value Investing.
- The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life
- Think and Grow Rich
- The Maxwell Daily Reader
- Retire Before Mom and Dad
- Why Smart People Make Big Money Mistakes and How to Correct Them
- Spend Well, Live Rich: How to Get What You Want with the Money You Have
Conclusion
To become financially stable and savvy at managing personal finance, you need to have basic knowledge of personal finance and wealth acquisition. These books provide a way through which you can learn this information by detailing and summarizing personal finance tips at an affordable cost. Some of these books also provide personal finance advice that is crucial in becoming more stable. Additionally, some of these books also provide frameworks that will show you how to get rid of bad habits that are responsible for poor financial outcomes. Create a reading schedule, pick a book that best suits your learning needs and engage in one of the best ways of becoming empowered. Most of these books are available on Amazon in hardcover and paperback formats and on Audible in audiobook format.
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