When we hear the word Finance, the first word that comes to our mind is Money. Undoubtedly, money is one of the most important elements of our life. It doesn’t matter in which profession or occupation you are, the end goal is to earn money.
But have you thought of managing your expenses?
You are trying hard to save money but still, you are unable to manage your finances. Remember one thing, earning money in today’s world is not a big deal, but how you manage that money in the right direction, is what makes you a wise person.
Talking about money management, there is a term linked to it, i.e Personal Finance. In simpler words, Personal Finance is all about how you manage your day-to-day finances. It helps you in various decision-making processes such as investments, savings, insurance. A good personal finance management plan also helps in meeting your short and long-term financial goals.
But, the Universe of Finance is complex where you need to manage all the things including your personal and professional expenses. Even if you are not from a commerce background, you should have the basic idea of financing for managing your money better.
At the most basic level, you can get that idea by referring to various personal finance books available in the market. These books help you in understanding various financial topics right from the base.
So, in today’s article, I am going to provide you with a list of the best personal finance books, you can refer to this year.
Let’s check top personal finance books to read this year
Table of Contents
Rich Dad, Poor Dad: Robert T. Kiyosaki
Even if you have a little knowledge about Financing, you must have probably heard the name of this book. One of the best personal finance books of all time in which the author has shared the story of his learnings. Kiyosaki has tried to explain personal financing by connecting emotionally with the readers.
The story includes his father (poor dad) and his friend’s father (rich dad) and the financial difference between the two. He says you don’t need a lot of money to get rich, it is all about your finance management. Sometimes you have a lot of money, but still, feel financially weak. On the other hand, if you can manage your finances, you will feel rich even with a small amount of money. The latest 20th edition of this book is currently available in the market.
I will teach you to be rich: Ramit Sethi
New York’s best-seller, this book is a bible for teenagers who want to pursue their career in the financial world. The writing style of this book is very informal and easy to understand. The author has explained all the things in a very straightforward manner to resonate with the young readers.
The book focuses on financial literacy and argues that most young people fail because they are afraid to take risks. If you took the risk but you failed, it doesn’t mean you took the wrong decision. You are responsible for your financial condition, make it big. You learn from your failures and if you want to become successful, you need to take risks at certain intervals.
The Millionaire Next Door: Thomas J. Stanley and William D. Danko
This book talks about fundamental principles of personal financing using simple facts. If you are a beginner and willing to learn personal financing from the basics, this book is a must-read for you. It has explained everything in detail and it contains various exercises to help you with.
A perfect guide for the people who think about the future and have already started working for that. You can buy this book from various online platforms such as Audible, Amazon books, Flipkart, etc.
The Psychology of Money: Morgan Housel
This is an interesting book to read for all the people out there. It shows the relationship between the psychology of money and your ego. Personal financing is not all about managing your money and finances. It’s more of a psychological process that affects your decisions related to money.
The book has 19 short stories that explain the same topic in different situations. This is one of the best personal finance books you can buy from Amazon, Walmart, booksamillio.com, etc.
The Simple Path To Wealth: JL Collins
JL. Collin wrote this book as a series of letters for his daughter to motivate her regarding the concept of free life. But later when it gained popularity, it got its official release as a full-fledged book. The book provides various insights about personal financing and how you can secure your money in the best possible way.
Collin stresses the concept of free life, i.e you cannot spend your whole life thinking only about money. Success is not only in money, it is within yourself. This is the basic mantra of life.
Your Money, Your Life: Vicki Robin
The book is as interesting as its title “Your Money, Your Life”. This book follows an easy nine-step plan to show the relationship between the people and their hunger for money. Vicki says, money is the most crucial thing in our lives, what we do, we do it for money. It is the basic truth of life.
He has tried to show the value of money in an individual’s life. You can manage your finances only when you know the value of money. This book also provides various tips like, how to manage your debts, how to start investing. Apart from this, there is a technique called Robin’s signature that you can practice to save your money.
The One Page Financial Plan: Carl Richards
This book stresses various financial challenges arising during the time of investing. When you are investing your money for the first time, it’s obvious you feel a little insecure about the consequences. This book provides various tips on how to invest your money, how to manage your finances, and what are your financial goals.
Before investing your money, always draw a one-page financial plan and work accordingly. This is the reason it is considered as one of the best personal finance books for all the people who want to invest in the market.
Get Good With Money: Tiffany Aliche
This book is the personal story of the author where she has explained her triumph over debts and financial crisis. The whole concept of the book revolves around the management of money. Personal finance is something that stops us from wasting money especially if you are investing in something. It also includes various worksheets that help in accessing your financial situation. This book is best-recommended for 3 types of people
- People dealing with debt problems
- People who follow worksheets
- Young students and entrepreneurs
The Total Money Makeover: Dave Ramsey
This is a debt management book that explains the relationship between debts and personal finances. Dave Ramsay says the easiest way to get out of debt is by ignoring all the pitfalls such as cash advances or using credit. It also explains various techniques by which you can succeed in the Snowball method.
It is a debt-paying method that includes various steps for improving your financial condition. One of the best personal finance books that provide certain tips for an emergency fund, retirement savings, etc
Spend Well, Live Rich: Michelle Singletary
This book is a story of Author’s life. She explains her childhood with her grandmother. She raised five more children including her on a least minimum amount of salary. Singletary is inspired by the financial management skills of her grandmother and wants to apply the same procedure in her life.
This story completely justifies the title, “Spend Well, Live Rich”. Your finances depend on you how well you spend and how much you save.
Financial Freedom: Grant Sabatier
This book is one of the best personal finance books for millennials. Sabatier explains his story, how he made a net worth of 1.25 million dollars in only 5 years. Here the meaning Financial freedom means when you no longer need to work under someone. You have to be financially independent, do anything, travel any part of the world.
This book acts as a guide to achieving your goals wherein the best possible way. You also say this book is a motivation for millennials who are willing to do something out of the box. You can buy this book from Amazon, Walmart, Audible, etc.
Retire Rich: P.V Subramanyam
This is a very interesting book in which the author has used a very unique example to convey his point. Subramanyam says if you work at the age of 25 and retire at the age of 49 and live until you are 95. What is the possibility that you will be able to manage your expenses till then? Here, he gives a very interesting tip to manage your personal finance.
He says if you invest 40 every day in savings and increase it by 10% you will never go into debt. The saved money will help you in debt management. Not a bad idea for only 40 hrs a day. This personal finance book has different sections for students and professionals. You can buy this book from any online platform such as Wallmark, mybooks.com, eBay, etc.
Conclusion
Every subject has its importance and benefits. Personal finance is something that we have to deal with every day. Knowing the basics helps you in understanding things better. The above discussed are the best personal finance books you can read this year. All the editions are the latest and updated. If you are planning to pursue finance professionally, I will suggest you read all these books and choose what suits you best.
I hope you liked this article and it must have cleared your doubts regarding various concepts of Personal Financing.
Frequently Asked Questions
What is the most effective way to manage your finances?
The easiest way to manage your personal finances is by making a proper management plan. The plan should include a proper list of your personal expenses including the money you spent on a monthly basis.
Can you describe a situation from your personal experience where you felt financially weak? And how did you manage to overcome that?
There was a time during my first job where I felt that I am getting financially weak. At that time, I didn’t have a proper idea of how to manage finances. But after that incident, I made a proper strategy that included all the things such as my daily expenses, how much is spent, how much is saved and so on. This is how I managed to overcome that crisis during that time.
