The Best Financial Books to Read

Financial Literacy is Crucial 

Financial literacy is the knowledge to make wise financial decisions. It is an essential tool to control your finances, manage retirement, trade online, obtain loans, and control credit cards. With proper financial literacy, people can reasonably balance their budget, control income and expenses, manage education fees, and avoid financial pitfalls.

Nowadays, it is imperative to educate yourself financially with wise books that will provide the knowledge you need to feel empowered over your money. Here we’ve picked up five financial books that should be read and studied carefully. 

I Will Teach You to Be Rich

Ramit Singh Sethi is an American personal finance advisor who runs a blog called “I will teach you to be rich.” In 2009 he wrote a book of the same name, which was published by Workman and became a New York Times bestseller. The book represents a 6-week program that will help manage money better and live a more satisfying life. The book is handy for young people who live from paycheck to paycheck, have no nest eggs, and plans for their financial future. “You don’t need to be a financial expert to become rich. The best financial management principles are elementary: sound budgeting, conscious spending, sensible banking, and buy-and-hold investment strategies”. 

The Total Money Makeover 

In 2013 Dave Ramsey, an American personal finance personality, radio show host, author, and businessman, wrote a book called “The total money makeover” that teaches how to get out of debts and start budgeting. The book represents the following seven steps to achieve financial stability:

1. Save a $1000 as an emergency fund
2. Use the debt snowball to get out of debt
3. Build a fully-funded emergency fund
4. Invest 15% of household income for retirement
5. Save for children’s college
6. Pay off your home early
7. Build wealth and be generous.

A Random Walk Down Wall Street

“A random walk down wall street” is a book written by Burton Gordon Malkiel, an economist, and writer. The book is about stock markets. In 2020 there have been twelve editions and over 1.5 million copies sold. In his book, Malkiel argues that asset prices typically exhibit signs of a random walk and cannot consistently outperform market averages. The author examines investing techniques called technical analysis and fundamental analysis and concludes that everyone should “begin a consistent savings plan as early as possible and invest the core of his portfolio in low-cost, broad-based index funds.”

The Automatic Millionaire

The book is about a step-by-step plan for building wealth without being disciplined by relying on fixed percentages, small payments, and automated transactions. The book’s author is David L. Bach, an American financial author, TV personality, motivational speaker, and founder of FinishRich.com. Here are three lessons given by the book:

1. An everyday saving will go a long way
2. Pay yourself first to make sure you take care of your financial future.
3. Via automatic payments, you can invest in a disciplined manner. 

Your Money or Your Life

In December 2008, a book by the authors Vickie Robin, and Joe Dominguez, was published in the USA. It was called “Your money or your life.” The book represents nine steps for transforming your relationship with money and achieving financial independence. The relationship encompasses more than just earnings, spending, debts, and savings; it also includes the time these functions take in your life. In addition, your relationship with money is reflected in the sense of satisfaction and fulfillment that you can get from your connection to your family, your community, and the planet.

If you want to go deeper into money and the philosophy of finances, there is no better way than old-fashioned books. Nothing can be changed with a piece of valuable advice given by a financial book. So, let’s get started and choose one of these books for this evening to begin reading.