One should never stop trying to learn new things. This applies to most situations in life but more so when you talk about personal finance. In this regard, these are four good finance books that you should find the time to read in order to enhance your grasp of personal finance concepts as well as learn from the best investors and writers who know what it takes to go from rags to riches armed with just great finance ideas.
- Rich Dad, Poor Dad (Robert Kiyosaki). Rich Dad, Poor Dad is one of the most important books that helped bring personal finance concepts to the masses. Many consider it to be a revolutionary book in that it took complex finance ideas into simpler and more readily understandable ideas that everyone can learn from. One of the most important tenets in Rich Dad, Poor Dad is the idea that earning much in a year does not necessarily translate to financial freedom. Instead, it all comes down to working smart and spending intelligently so you can use your wealth in a more productive way. Rich Dad, Poor Dad is all about changing our preconceived notions about spending so we are able to build the mindset necessary to grow our personal fortunes.
- The Intelligent Investor (Benjamin Graham). Like Rich Dad, Poor Dad, The Intelligent Investor goes out of its way to simplify complex ideas so common people can understand and apply the knowledge in their everyday lives. One crucial difference, however, is that The Intelligent Investors focuses on investing tips and strategies as opposed to general personal finance ideas. This is very helpful for people who do not have a clue about investing but are eager to start out in their investment careers. At the core of this book is the idea of systematically assessing investments so you are equipped with the necessary information even before you make your first investment.
- The Total Money Makeover (Dave Ramsay). Another landmark book in personal finance is The Total Money Makeover. The book is perfect for people who are dealing with debt and would want to overcome their situation. In a sentence, the book is all about “working hard, paying what you owe, and staying out of debt.” That’s as best an advice as any when it comes to personal finance.
- The Richest Man in Babylon (George Clayson). This book takes Aesop’s strategy and intends to teach about money in the form of parables and short stories. If you want a lighthearted approach to personal finance without sacrificing the message, this is the ideal book to read.
Learn so you can apply these concepts into your daily personal finance challenges. With the right set of knowledge and the right attitude, there is nothing you cannot do to achieve your dreams of financial independence.