Best personal finance books for 2021


Man taking a book from a bookshelf

Many successful people will tell you that they have read a book that has changed their lives. In this overview of several of the best personal finance books of 2021, there may be one or more that could help you change your financial life. Reading material isn’t always light, but it’s important that you learn how to achieve your financial goals or even how to realistically set financial goals for yourself. Learning from a financial advisor is a good addition to learning financial books.

The following five personal finance books may help you better understand your financial needs and teach you how to set and achieve your goals.

“Why didn’t they teach me that at school?” “

Have you ever wondered why they don’t teach personal finance in high school? Some colleges and universities require it, but not all. If you major in finance, you probably won’t take a personal finance course unless you take it electively. Most finance majors focus on corporate finance or investing instead of personal finance principles.

Many students graduate from high school or college and have little idea of ​​how to handle all aspects of personal finances. As the author of this book, Cary Siegel wrote down what he believed to be the guiding principles of personal finance for his children. He realized that his notes to his children had a wider audience and “Why didn’t they teach me this in school?” was born.

Most personal finance books and personal finance textbooks are complicated reads. Instead, this author focused on eight lessons in personal finance and developed a comprehensive, yet short, and straightforward book around them. He linked 99 principles to these eight lessons and resulted in an excellent book that is more qualitative than quantitative. It gives you the knowledge to base the quantitative money management information that you need to learn. Following his own principles enabled Siegel to retire at 45.

It’s a great book to read before delving into more complex and quantitative personal finance books.

“Rich daddy, poor daddy”

It is the best-selling international personal finance book of all time. Instead of focusing on one area of ​​finance like debt management or investing, it’s a general overview that’s still relevant today. It was originally written over 20 years ago and was recently updated for its 20th anniversary. Over the years, author Robert Kiyosaki has written a series of personal finance books that all started with this book. There are 14 books in the series that cover everything from investing to credit cards to cash flow and well in between.

Kiyosaki begins with a personal story of how he grew up with two fathers. One was his real father. The other was the father of his best friend, a wealthy man who had a knack for managing his money. His “other dad” taught him some simple personal finance lessons, and he learned on his own, by following those lessons, how to make your money work for you instead of your money. He learned that you don’t have to be rich to be financially successful.

Read the series. You will find a lot of worthwhile things in “Rich Dad, Poor Dad”.

“The Millionaire Next Door: The Surprising Secret of Rich Americans”

Open wide with a tree sticking out

Open wide with a tree sticking out

The “Millionaire Next Door” is another type of personal finance book. Originally written two decades ago and recently updated to reflect the 21st century, the book explains how most millionaires in America are not professional athletes or movie stars. They are your neighbors. They live next door, right next to you. You probably don’t know they’re millionaires because they don’t brag about their money. They don’t drive fancy cars. They don’t live in amazing houses. They are just like you and me, except they have applied the principles of personal finance to their lives. Most have not even inherited their money. They saved and invested their savings by living below their means. They shopped for good deals. They invested small amounts of money as best they could. They chose their investments wisely and were long term or long term investors, not speculators. Their kids probably didn’t even know their parents were millionaires.

The authors, Thomas J. Stanley and William D. Danko, interviewed many millionaires. They found that most millionaires are the opposite of what you might expect. They are not big players. Instead, they have lived their lives without being sighted consumers and sacrificing a bit in the present to secure a financially free future.

“Smart Money: The Personal Finance Plan to Crush Debt”

I love this book because it gives you a step-by-step plan to plan for your financial future while letting go of what doesn’t work and learning what works. Author, Naseema McElroy, gives you nine financial principles that help you learn how to get rid of debt and build wealth. It helps you learn how to save money, correct mistakes you have made, and avoid making mistakes in the future. The book provides you with worksheets and checklists. There are dozens of tips and tricks on topics like debt management, investing, budgeting, and more.

The book uses simple English, with little financial jargon, to explain simple concepts that will get you on the right track. It is easy to read for people with no financial experience. Complex financial concepts are broken down and tied to concrete actions you can take. You’ll find a wealth of information in the author’s tips to help you get on top of your debt and envision a brighter financial future.

“I will teach you to be rich” (2nd ed.)

If you think you have to deprive yourself to be rich, think again. “I Will Teach You To Be Rich” bestselling author Ramit Sethi shows you how to invest your money with the right asset allocation so you can spend guilt-free. He discusses all kinds of possible financial issues you might have, such as how to manage your student loans, how to start saving and investing, and more in this New York Times and Wall Street Journal bestseller. It is based on tools and systems that you can use to achieve your financial goals.

This second edition comes at the right time and contains information on topics as diverse as robo-advisers and how to beat banks. It’s a refreshing look at personal finance because Sethi is honest and upfront and even shares his own personal approach to achieving his financial goals. It discusses the concept of mindful spending, getting the best value for your credit cards, and how to prepare to invest. Throughout the book he brings in stories of people who were successful and how they became so as well as accounts of those who used his system. It’s a book you’ll want to pass on to others.

The bottom line

A huge library

A huge library

A lot of people don’t like to think about money. He feels uncomfortable for a lot of people. Often it’s because we don’t know all the rules of the road or how to manage our money. Schools don’t teach it. Sometimes parents don’t teach it. We are coming of age and have little or no idea what personal finance means or encompasses. These 2021 best personal finance books will help you set and achieve your financial goals. There are other good ones too, as this list will attest.

Financial advice

  • After reading these books, you may decide that you need to know more about how to manage your money. If you do, it would be wise to work with a financial advisor. Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool connects you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is best for you. If you’re ready to find an advisor who can help you reach your financial goals, start now.

  • Thinking of refinancing your mortgage? Find out the details on refinancing to make a better decision. Check out SmartAsset’s refinance calculator to help you make up your mind.

Photo credit: © / demaerre, © / HiddenCatch, © / meshaphoto

The article Best Personal Finance Books for 2021 appeared first on the SmartAsset blog.