What
is personal finance?
Personal finance is the act of managing your cash flow. If
you have a lot of debt, you should focus on paying off that debt to make your
life richer. The first step to paying off debt is creating a budget by listing
your income and expenses. You can also make it easier to pay off debt by
refinancing or consolidating services into one loan.
Why is getting a degree not enough?
Getting a degree is not enough to help you live a richer
life. You can read books on personal finance or find other resources that will
teach you about investing, budgeting, and other ways to get money.
Personal finance can be hard to learn on your own. It’s not always the easiest subject to teach yourself, and you probably don’t have the right kind of support group around you either. That’s why reading books on personal finance could be one of the best things you can do to keep yourself on track with your savings goals, reduce your debt load, and generally keep your finances in order as best as possible. But what are the top personal finance books that will help you in 2022? Here are Fifteen books that will teach you about personal finance in 2022.
1)
Rich
Dad Poor Dad
by Robert Kiyosaki
As Robert Kiyosaki wrote in his best-selling book, The
difference between poor people and rich people is the way they handle their
money. In Rich Dad Poor Dad, Kiyosaki educates readers on the difference
between an employee mindset (poor dad) and an entrepreneur mindset (rich dad).
Kiyosaki urges readers to become financially literate and
explore new ideas that will help them succeed in life. He asserts that business
ownership is the key to being rich.
2)
The
Little Book of Common Sense Investing
by John Bogle
The best book on investing, Little Book of Common-Sense
Investing was written by John Bogle. This is a great, easy-to-read book that
distills down a lifetime of wisdom and experience into plain language anyone
can understand. Many books have been written about investing, but most of them
offer little help to real investors and are meant only to impress others who
don't know any better. But not The Little Book of Common-Sense Investing: The
Only Way to Guarantee Your Fair Share of Stock Market Returns. This book is for
investors who want to make sensible decisions about their investments and then
actually do it—and get on with their lives.
3)
The
Automatic Millionaire
by David Bach
In case you’re not familiar with The Automatic Millionaire:
A Powerful One-Step Plan to Live and Finish Rich by David Bach, it was one of
first best-selling books to teach people about personal finance. It outlines
his pay yourself first strategy which suggests that people pay themselves first
by contributing a set amount of money (10%) of their income into a retirement
account before they pay any bills or expenses. Because you aren’t paying
yourself last, you can begin to work on growing your assets without sacrificing
any lifestyle expenses right away.
4)
Broke
Millennial
by Erin Lowry
The Broke Millennial is a fun, approachable guide to
personal finance for millennials and people who may feel financial illiteracy.
It covers common money mistakes young people make, as well as how to learn from
them. The book provides readers with advice on everything from budgeting and
saving, to buying a home and investing wisely. The Broke Millennial will teach
you everything you need to know about personal finance—without all of the
confusing jargon or intimidating statistics. Instead, it’s an easy-to-read
compendium of practical advice written by someone who has been there: broke but
hopeful.
5)
I
will teach you to be Rich
by Ramit Sethi
The best personal finance book, it will teach you how to
organize your money so that you’re spending less than you earn, creating an
emergency fund and building a nest egg. The book can also help you avoid
student loan debt, invest for retirement and pay down high-interest credit card
debt. I Will Teach You to Be Rich is also great for people who are afraid to
use their credit cards and want to take control of their finances. Author Ramit
Sethi doesn’t have any advanced financial training, but he does have experience
earning and managing his own money at a young age.
6)
The
Psychology of Money
by Morgan Housel
Even if you aren’t interested in a degree in finance, The
Psychology of Money: How Our Brains Make Smart Financial Decisions and How We
Can Learn to Make Better Ones, might be right up your alley. The book is
written by a neuroeconomic and studies why people make poor financial
decisions. It’s filled with solid advice that will help you build better habits
for saving and spending your money. Best of all, reading The Psychology of
Money will introduce you to many other books worth reading to learn more about
finances.
7)
Your
Money or Your Life
by Vicki Robin
Everyone knows that personal finance is important, but very
few people actually take steps to get on top of their finances. Your Money or
Your Life was a groundbreaking book when it was published 20 years ago and is
still considered one of the best personal finance books ever written. It's
worth re-reading every few years to keep your finances on track. The 4-Hour
Workweek author Tim Ferriss said, I have not found a better practical framework
for thinking about life and business than YMOYL. And Oprah Winfrey added it to
her list of favorite self-help books.
8)
The
Millionaire Fastlane
by M. J. DeMarco
A common perception of wealthy people is that they’re
hard-working grinds who got their financial security by not splurging on an
extravagant lifestyle. In his book, MJ DeMarco challenges that idea by
advocating for a life of less work and more leisure. He provides actionable
strategies for those who want to retire early or leave their job to start
something new—it’s one of only a few personal finance books written
specifically for millennials. The Millionaire Fast Lane isn’t going to win any
literary awards, but it’s worth reading if you want to learn more about earning
and saving money.
9)
The
Science of Getting Rich
by Wallace D. Wattles
The Science of Getting Rich was published by Wallace D.
Wattles at a time when he had very little money, but that didn’t stop him from
becoming a millionaire. The focus of his book is creating a new way of thinking
about money and what it can bring you. This book follows your journey through
personal finance, explains how to make investments wisely, and gives your ideas
on how to start becoming rich today. The great thing about this book is that it
doesn’t suggest you give up everything and move to New Zealand; instead, it
offers simple ways to improve your life while living where you are.
10)The Total Money Makeover
by Dave Ramsey
Dave Ramsey is a financial advisor who has written several
books that deal with personal finance and money management. In The Total Money
Makeover, he presents a 7-step plan for helping individuals get out of debt.
Each chapter presents information in an easy-to-understand manner, making it
simple for anyone to follow his advice. If you are serious about having good
financial health, The Total Money Makeover should be your first step.
11)7 Steps to Financial Freedom
by Suze Orman
Orman’s straightforward, no-nonsense writing style is
peppered with personal anecdotes and sound advice. If you want to know more
about building a better life for yourself and your family, she has a lot of
great information here. While some of her advice could be categorized as rich
man’s problems, Orman does a good job of showing how certain financial habits
can help you to improve any aspect of your life. A surefire winner if you are looking
for books on personal finance.
12)GET GOOD WITH MONEY BOOK
by David Bach
You know that you need to save money, but to do so you need
a budget. Creating and sticking to a budget is one of those financial
challenges that’s difficult to understand without a guide. This book will give
you solid advice for creating your first budget, building from there, and
avoiding common pitfalls. The authors also provide tips for some of your
toughest personal finance questions – like how much should I be saving for
retirement? And how do I pay off debt? – through each step of building a simple
but sound financial plan. As author David Bach says: this book won’t make you
rich overnight, but it will help get you headed in that direction over time.
13)Think and Grow Rich
by Napoleon Hill
We’re not going to lie, there are a lot of cheesy self-help
books out there but Think and Grow Rich is different. Hill’s philosophy is
based on what he called The Law of Success, which holds that your success in
any endeavor can be measured by how many people you help reach their goals in
life. The book makes some pretty compelling arguments for why you should change
your thinking. It teaches readers how to develop a winning attitude—one that
focuses on optimism, gratitude and free thought—and uses examples from
successful people like Henry Ford, Thomas Edison and John D. Rockefeller to
illustrate its points.
14)Financial Peace Revisited
by Dave Ramsey
Financial Peace Revisited is a
must-read for anyone looking to get control of their money. Ramsey's
no-nonsense approach to money management allows you to see just how quickly
things can add up if you don't have a plan in place and he offers a clear and
concise set of tools that will allow you to get started immediately. It's an
excellent read whether you're drowning in debt or just looking for ways to save
some extra cash. You won't regret adding it to your reading list!
15)RETIRE BEFORE MOM AND DAD
Retire Before Mom and Dad is a book
with powerful advice for those who aspire to retire early. It’s one of many
books on personal finance that have helped Dave Ramsey become a millionaire and
retire at age 45. In his book, Ramsey explains how retirees can plan their
finances, so they never have to work again. He also discusses ways to pay off
debt, gives tips for investing and even suggests where readers should keep
their retirement money to earn interest. Readers interested in having financial
freedom may also want to check out another one of Ramsey’s books, called The
Total Money Makeover: A Proven Plan for Financial Fitness. This book teaches
readers about ways they can get out of debt and live an overall healthy
financial life.
The Final Thought
Personal finance isn’t just about making money. It’s also
about understanding your spending and saving habits, as well as how to better
manage your emotions when it comes to money. Looking back on what you spend or
save over a year (even five years) can help you make decisions that will
improve your financial future. Start with these 15 books, and then add more of
your own favorites along the way.
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