Last updated on January 14th, 2023 at 07:24 am
“The single biggest difference between financial success and financial failure is how well you manage your money. It’s simple: to master money, you must manage money.” – T. Harv Eker
Financial literacy is an essential skill that everyone should have to improve their financial life. Not only will you feel more empowered to improve your personal finances but you will also feel more confident while making informed decisions about how to save money and create financial independence.
Proper money management is an essential skill to build early in life and there are plenty of ways to build this skill. One of the best ways to gain financial literacy is through reading personal finance books on the subject.
There are numerous financial literacy books available, covering a wide range of topics from budgeting and saving to investing and retirement planning. Whether you're a beginner or an experienced investor, there's a financial literacy book out there for you.
In this blog post, we'll be taking a look at some of the best financial literacy books on the market and what you can expect to learn from them.
related blog posts
What Are The Best Financial literacy books to help improve your personal Finances?
1. "Rich Dad, Poor Dad" by Robert Kiyosaki:
Rich Dad Poor Dad is a classic and has sold millions of copies worldwide. It focuses on the importance of financial education and encourages readers to think differently about money and investing.
The author walks you through a time in his life during childhood when he started to develop the basic skills for improving his personal finances.
No, Robert Kiyosaki did not have two fathers. He made that very clear in his writing. The poor dad was his biological dad (a successful educator with poor financial literacy). The rich dad was his friend's father (a successful businessman with great financial literacy).
This New York Times Bestseller is worth reading due to its powerful key takeaways about financial literacy.
Rich dad poor dad is one of the best financial literacy books for beginners and you can pick it up for a few dollars on Amazon.
2. "The Total Money Makeover" by Dave Ramsey:
Dave Ramsey is a personal finance guru and offers a step-by-step guide to managing your money and getting out of debt in his book The Total Money Makeover. It includes practical advice and real-life success stories.
Sometimes it pays (pun intended) to learn from others who have achieved what you are trying to achieve. Financial independence has become a reality for people just like you, so it's always a good idea to learn from their financial freedom story.
If you want solid advice on how to build wealth and increase your net worth, then The Total Money Makeover is the financial literacy book for you!
3. "The Intelligent Investor" by Benjamin Graham:
The Intelligent Investor is considered a classic in the field of value investing in the stock market and is often recommended by Warren Buffett.
It is one of the most popular personal finance books because it provides a solid foundation in investing concepts and principles that have helped lead individuals to financial freedom.
America's wealthy did not become that way overnight. In fact, there are over 1,700 millionaires created in the US each day.
4. "Your Money or Your Life" by Vicki Robin and Joe Dominguez:
This book is a comprehensive guide to taking control of your finances and achieving financial independence. It includes a step-by-step program for tracking your spending, reducing expenses, and increasing savings.
Here are 5 key takeaways from this book to help improve your financial knowledge:
- Encourages readers to track their spending to gain a clear understanding of where their money is going. This can help individuals identify areas where they may be able to cut back and save more to create financial freedom.
- Encourages readers to develop a budget and stick to it, in order to make their money work for them to achieve their financial goals.
- Emphasizes the importance of living below one's means, rather than constantly trying to keep up with the Joneses and spending more than one can afford.
- Encourages readers to find ways to increase their income while saving money, rather than just cutting back on expenses, as a way to achieve financial independence.
- Promotes the idea of financial independence and the freedom it can bring, rather than just focusing on accumulating wealth. It also encourages readers to consider their values and goals, and how they align with their spending and earning habits.
5. "The Simple Path to Wealth" by JL Collins:
Written in an easy-to-read, conversational style, this book is a great introduction to investing for people who are new to the subject.
The Simple Path To Wealth focuses on building wealth through low-cost index funds, and also touches on how to minimize taxes, reduce fees, and live frugally.
6. "The Psychology of Money" by Morgan Housel:
This book explores the emotional side of money and it reflects on how our attitudes, beliefs, and emotions affect our financial decisions. It is a well-researched book and offers insights that can help readers make better financial choices.
The Psychology of Money is a book you definitely want to add to your reading list. After all, the money management game is played in our minds first. Financial wisdom grows over time when you learn how to feel the energy of money and what it represents in this life.
7. "Money Master the Game" by Tony Robbins:
This book is written by popular motivational speaker Tony Robbins and it draws on the knowledge of some of the world's most successful investors and financial experts.
Tony Robbins is known for his ability to connect with his audience and offer the most life-changing advice, and he did not fall short of that with this financial literacy book. It offers a 7-step plan for financial freedom and provides practical advice and strategies for achieving financial success.
8. "The Automatic Millionaire" by David Bach:
The Automatic Millionaire is part of the "Finish Rich" series and focuses on simple and automatic ways to save and invest money to improve your finances.
It provides a step-by-step plan for achieving financial security and debt management, including strategies (e.g., the snowball method) for paying off debt and increasing savings.
9. "The Little Book of Common Sense Investing" by John C. Bogle:
This book is written by the founder of Vanguard and it's a simple and straightforward guide to investing. It encourages readers to adopt a long-term, low-cost investment strategy and avoid the common mistakes that many investors make.
As a successful financial guru, the author does a great job at distilling some of the best money lessons in the field, making it an instant best seller. In this book, you are able to see clearly what the path to financial well-being and financial planning looks like.
Your future self and bank accounts will thank you for reading this book to create your financial freedom.
10. "The Truth About Money" by Ric Edelman:
The Truth About Money is written by one of the most well-known financial advisors in the industry and provides a comprehensive overview of personal finance. It covers everything from budgeting and saving to investing and retirement planning, and includes practical advice and real-life examples to help readers better understand and manage their money.
5 Money Lessons From This Book:
- Emphasizes the importance of having a long-term financial plan in place and sticking to it. This includes setting financial goals, creating a budget, and investing for the future.
- Stresses the importance of investing for retirement as early as possible, in order to take advantage of compound interest and have enough money saved for a comfortable retirement.
- Encourages readers to be proactive about managing their money, rather than relying on financial advisors or other professionals to do it for them. It provides guidance on how to make informed decisions about investments, insurance, and other financial products.
- Teaches the importance of diversification in investing. It suggests spreading the risk by investing in different asset classes such as stocks, bonds, real estate, commodities, and cash.
- Advocates for the importance of understanding and managing debt. It suggests creating a plan to pay off high-interest debt as soon as possible and avoiding taking on new debt. It also gives advice on how to use credit cards, loans, and mortgages in a responsible manner to build credit and improve financial literacy.
Some Honorable Mentions Of Financial literacy books that help you Save money
11. The Richest Man In Babylon:
"The Richest Man in Babylon" by George S. Clason is a classic personal finance book that teaches valuable money lessons through parables set in ancient Babylon.
The book is a great road map and emphasizes the importance of living below one's means, saving at least 10% of one's income, and investing wisely.
It is a must-read for anyone looking to improve their financial literacy and gain a better understanding of how to manage their money.
12. Broke Millennial: Stop Scraping By and Get Your Financial Life Together:
"Broke Millennial" by Erin Lowry is a relatable and humorous guide to personal finance for millennials.
It covers topics like budgeting, saving, investing, and understanding student loans, credit cards, and other financial products. It is a great resource for young adults looking to take control of their finances and build a solid financial foundation
13. Think & Grow Rich:
"Think and Grow Rich" by Napoleon Hill is a classic personal development and self-help book first published in 1937. The book teaches the power of positive thinking, visualization, risk-taking, and goal-setting to achieve success.
It is widely considered a must-read for anyone looking to improve their mindset, save a lot of money, and achieve their aspirations and goals. This book was created to help others "live rich" in its simplest meaning.
Wealth isn't just about how much you invest in the stock market but how much you invest in your mindset in general.
Final Thoughts On Creating Financial freedom:
Improving your financial literacy will take time and that's okay. The most important thing is that you do not give up on yourself. Most of us did not get into debt overnight, so becoming debt free will not happen overnight as well.
When considering student loan debt in the United States alone, there are currently over $1.745 Trillion dollars owed in student loan debt. Building wealth through financial literacy books can lead you on the path to properly managing student loans, starting your first emergency fund, and figuring out how to make your money work for you to achieve your financial goals.
The path to personal wealth is lined with valuable life lessons, so take your time when going through these personal finance books. Some money lessons take longer than others to comprehend.