When it comes to money management, many of us are self-taught.
Indeed, in the United States, only 21 states require high school students to take a personal finance course to graduate, according to a 2020 Council for Economic Education survey. In the past, the personal finance program was even less formalized across the country, so it’s no wonder that adults today are turning to online resources and books to learn more about banks, mortgages, investments, retirement planning and beyond.
Some personal finance books target a specific audience – whether they’re nearing retirement, millennials, women, or low-income families – so eliminate advice that doesn’t apply to your situation. is one of the challenges in finding general money management advice from a book rather than a professional one. But a personal finance book can offer fundamental knowledge and expert ideas with an incredibly high return on investment, and many of these books are available for free through local library services.
Here are some of the best personal finance books available today:
- ““Your Money or Your Life” by Vicki Robin and Joe Dominguez.
- “The Bogleheads’ Guide to Investing” by Taylor Larimore, Mel Lindauer and Michael LeBoeuf.
- “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko.
- “Financial freedom” by Grant Sabatier.
- “The Total Money Makeover” by Dave Ramsey.
- Morgan Housel’s “The Psychology of Money”.
- “Raising financially healthy children” by Joline Godfrey.
- Benjamin Graham’s “Smart Investor”.
- “Smart Women Love Money” by Alice Finn.
“Your money or your life” by Vicki Robin and Joe Dominguez
This book was first published in 1992, but the principles uncovered in it still hold true.
“It helps readers determine what money means to them, how much is enough, and how to achieve financial independence while conserving the earth’s resources,” wrote Carol Gosho, Certified Financial Planner and Director and Founder of Gosho Financial Group in California, in an email. . “The philosophy of the book confirmed my conclusion that it is not our patriotic duty to consume and spend beyond our means, but rather to learn how to generate enough passive income to live the life we choose. . “
“Your Money or Your Life” has since been reviewed and updated, and it is applauded for covering both long-standing and modern approaches to money management. It can also provide a bit of wisdom to a wide range of readers, covering issues such as deleveraging, savings strategies, and basic investing strategies to go the distance.
“The Bogleheads’ Guide to Investing” by Taylor Larimore, Mel Lindauer and Michael LeBoeuf
Ideal for: Beginner investors.
“The Bogleheads’ Guide to Investing” is an excellent first book on investing.
Created by followers of John C. Bogle, founder of the Vanguard Group and advocate of index mutual funds, this book describes the investing style of Bogleheads in a clear and easy-to-understand manner.
The book is the product of a move away from attempts at timing the market and towards a slow and steady investment strategy that relies on a few simple principles, including keeping investment spending low. You can find more information from like-minded investors on the Bogleheads community forum.
“Financial freedom” by Grant Sabatier
Called the “Millennial Millionaire,” Grant Sabatier shares his strategies to grow from 24-year-old and broke to a net worth of over $ 1.25 million in just five years in his book “Financial Freedom”.
Becoming financially free can mean having the freedom to quit a hated job or travel the world, and this book provides a step-by-step guide to achieving those goals, whatever they may be. The process will likely involve some creativity and original thinking, but his advice is also practical and manageable. It covers topics like side activities, negotiating with employers, and investing strategy, with the ultimate goal of creating more time to do what you love.
“The Total Money Makeover” by Dave Ramsey
Applauded for its disciplined approach to money management, “The Total Money Makeover” can really make a difference in the lives of those struggling with debt and credit cards.
Dave Ramsey says families should start with seven steps, including: saving $ 1,000 in an emergency fund, paying off all debt (except the mortgage) using a debt “snowball” strategy, and saving three. to six months of spending in a fully funded emergency fund.
“The Millionaire Next Door” by Thomas J. Stanley and William D. Danko
This book can be incredibly revealing, especially for young people and families who are just starting out.
Combining data and expert insight, “The Millionaire Next Door” reveals the truth about what a millionaire really looks like – and it might not be what you would expect.
The ideas discussed in this book are simple but powerful: “Spend less than what you earn. Save money every month. If you spend less, your income requirements will be less and therefore your taxes will be lower, ”Lawrence Pon, California tax specialist and certified financial planner, who lists the book as one of his favorites, wrote in an email. . “For example, if you buy a cheaper house, it will cost less to maintain and your property taxes will be lower.
Morgan Housel’s “The Psychology of Money”
A financial plan is worthless without proper execution. But sticking to a budget and making smart financial decisions can usually be a challenge.
“The Psychology of Money” reveals the real ways people make decisions about money and helps readers make sense of their own financial behaviors.
“Raising financially healthy children” by Joline Godfrey
Parents can play a role in helping children develop positive financial habits early on and understand the complexities of managing money as they grow older. “Raising Financially Fit Kids” covers ways in which financial education can help children achieve their dreams and become more confident, as well as concepts such as financial sustainability and charitable giving.
This book aligns the five stages of development – kids, tweens, middle school, high school, and 20+ – with financial education benchmarks, so its principles can be useful for parents of children of different ages.
Benjamin Graham’s “Smart Investor”
Ideal for: Intermediate to advanced investors.
Ready to improve your portfolio management? Benjamin Graham’s “Smart Investor” describes in detail his philosophy of value investing, in which investors choose stocks that appear to be trading for less than their intrinsic value.
Considered the bible of the stock market since its first publication in 1949, the book has since been revised with ideas for modern investors.
“Smart Women Love Money” by Alice Finn
Ideal for: Beginner investors.
Women don’t tend to invest as often as men, and Alice Finn’s “Smart Women Love Money” isolates and attacks the barriers that stand in their way.
Finn’s book provides an overview of the unique financial challenges and circumstances women face before moving on to the five stages of a successful investment for women. These include investing in long-term stocks, allocating assets, and rebalancing a portfolio regularly.