Personal finance is the first thing that we all must understand if we really wanna achieve financial growth in the future. And Finance books are the one who comes to help us in this regard as you must have heard that books are your best friends and they never misguide you. I personally follow this quote and really getting benefitted from it and that is the reason I must recommend you to go through these books.
Personal Finance is all about how well we handle and manage our money and take wise and efficient decisions. Personal finance includes key concepts like Saving, Expenses, Investments, Insurance, Assets, and Liabilities. Here in this article, we will discuss all-time great books about the concepts of personal finance and investments.
Top 5 Finance Books you must read
The Psychology of Money
When you are talking about personal finance then you must first understand the psychology behind money and how it behaves in an economy. This book written by Morgan Housel is an excellent creation about the psychology of money and the factors and emotions which are responsible for the well-known behavior of money in the market.
This book discusses various factors like emotions which pays a major role in molding our thought process when it comes to taking any money-related decisions. It tells us the reason why there are so many fake ideas and presumptions about money floating in the market and one and only reason behind them is that we don’t have knowledge.
Just because we don’t have the knowledge, we start accepting and making them our belief that money is only for the rich and not for everyone. Leaving that we must focus on the system and tools which can lead us to wealth generation. So in a nutshell, this book educates us on how we can bond with money and make smart financial decisions in our life.
Rich Dad Poor Dad
This book is personally my favorite and the first ever book I read about money, and I must recommend every one of you to go through this to understand the mindset of rich and poor people about money and its management. Robert T Kiyosaki wrote the book and it is regarded as a classic of modern personal finance.
The author explains how he learned two different ways of managing money, one from his original father who was a school teacher with carrying poor financial mindset, and the second person whom he regards as his second father in terms of teaching him finances. His second father was a businessman and he taught the author about the mindset of rich people in managing their money. The author then compares both mindsets and comes up with great lessons embedded in this book for us.
The writer emphasized here to create a source of passive income and invest the same. This book teaches us the basic concepts of saving, budgeting, investing like assets and liabilities, and many more.
The Intelligent Investor
This book was written by famous American economist Benjamin franklin and it is regarded as one of the best and foremost books to be read by each investor before starting his or her investment journey. This book is focused on teaching you about value investing which means purchasing great stocks that are currently trading for less than what they are worth. This book is aimed to clear the air of investment-related concepts which every one of us must understand to save our penny from losses. The great value investor of the world Warren Buffet followed the writer and regard him as his teacher.
This book has many fantastic principles to read and we can not sum up all those here in this article. But then also I must address some of the core concepts about money dictated by the author throughout this book. This book aimed at three core principles and those are:
An intelligent investor will always look for long-term goals and to achieve his goals he or she will definitely analyze the fundamentals, management, and ethics of the management before investing in any organization.
An intelligent investor will always seek long-term profits but not at the cost of losses. So he will always try to cut down his losses in investment by diversifying his portfolio as per his reward strategy.
An intelligent investor never runs behind quickly rich things or for any unrealistic profitable goals. He will aim to get steady and stable returns which must be having the potential to make him rich in the longer term.
Warren Buffet in his book ‘the warren Buffet way’ mentioned two beautiful principles:
Rule No. 1 – Never lose money
Rule No.2 – Never forget rule no 1
And these principles are inspired by the book ‘The Intelligent Investor’
Richest Man in Babylon
The book written by George S. Clason talks about the basic persona finance and related concepts which are prevalent from the times of ancient Babylon. If we apply these teachings to our financial life today, our finances will surely generate fantabulous returns for us in the future.
The writer was once a soldier turned businessman and writer in the later part of his life. He tried to teach us the very basics of finance like the importance of saving and investing in the correct tool by the means of stories set in ancient Babylon. People residing in ancient Babylon discovered many basic principles leading to wealth like savings, investing, why not borrowing, etc.
When someone is teaching you through stories, it becomes really interesting and easy to learn about the concepts and this book does so. Although some terms used in the book are not easy to understand by everyone and you can find it difficult to read at the start. But I must assure you that if you keep reading for some more pages, you will get glued to the book. Anyhow the book is very short and easy to complete in small time.
This book focuses on some core concepts like saving at least 10% of income irrespective of anything, investing in skills, and never lending money where you are not sure that money will return back to you.
I will teach you to be Rich
Book authored by Ramit Sethi who become a major personal finance Trainer of the century from a little Indian Kid. This book is all about how to earn more, save and lead a rich and guilt-free life. This book helps you to identify the holes from where your money is escaping and also the possible areas of debt that you can avoid. It also teaches us the ways through which we can save in an auto mode by directing the desired money to the specific money-making tool automatically. This book highly emphasizes avoiding usually ignored debts generated from Credit Cards and how we can escape this debt easily in a systematic manner.
Book asks us to be responsible for our money and behave with the money in a responsible manner while handling it. And if you are not qualified for this, you must accept the fact and try to look for someone qualified. That means we should not blame others for our losses in finance and not make lame excuses like wrong advice, fake tips, etc. It requires us to start as early as possible and start saving even if we can save only 1 Rupee.
Blogs that can Enrich you more:
- What is Personal Finance and how to achieve it?
- How to invest in the stock market?
- How the Mindset of an Investor works?
Books play an important role in shaping the mindset of a persona and if you are following great writers, there are high chances that you will succeed in your life. When it comes to money, the books we discussed are some of the great books written by famous personalities admired all over the world for their contributions to mankind. Hope this article and books will make positive and impactful changes in your life too