15 Books That Will Teach You About Personal Finance in 2022 - InvestorFobia

 

  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
      by Dave Ramsey

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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