The Five Best Books on Personal Finance
Money advice is easy to find, but good money advice – advice you can use and take to heart – is more difficult. Sure, budgeting and money management seems easy, but if it were, everyone would be uncomfortable. This week we take a look at some of the best personal finance books to help you get your bills in order based on your nominations.
There are more books on personal finance and money management for sale than anyone could buy (with all this money they have to save), but for good reason – while the advice may not change significantly, many people are looking for useful ways to apply it. … personal advice on how to improve their particular situation, as well as suggestions on how to save for the future, make a budget for today, invest for someday and achieve their financial goals.
Earlier this week, we asked you for the personal finance books that you think are best for this . You responded with far more proposals than we could highlight here, but here are your top five nominations in no particular order.
Full Money Revival , Dave Ramsey
Dave Ramsey has written more than a few books on personal finance, and his lessons, workbooks, podcasts, and other media appearances have earned him the following. Some of them are definitely something of a “personality cult”, but for many, his advice hits the mark, dispels the budget fog from their heads and helps them make real and long-term changes in their lifestyle to improve their financial situation, except your financial goals or getting out of debt. Total Money Makeover ($ 15 on Amazon) was originally published in 2003, has been regularly updated since then, and has been listed on the New York Times bestseller list for over two years and has sold nearly 5 million copies. This book is generally considered to be Ramsey’s collection of tips, summarized in seven simple steps to help you get out of debt and change your attitude towards money. It also includes tips for investing, saving for the future, and increasing your cash flow and income to help you pay off those debts faster or save for your goals.
Those of you who have nominated this book praised it for giving you easy steps to manage your debt and inspiring you to make positive changes along the way. Many of his tips are what you’ve probably heard, such as how to budget correctly, how to find places to cut your spending, and how to pay credit cards (although Ramsey has often faced criticism for suggesting that people pay balance, not interest.) However, having all of these tips in one book makes it easier to do, and the accompanying exercises and Ramsey’s suggested actions make them easier to do. This does not mean that there was no criticism – many of you pointed out that blindly following Ramsey’s advice can lead to the fact that you may not want to be, for example, paying a higher percentage of your cards in the time it takes to pay them out. or not taking on our good debts (student loans, affordable mortgages, etc.) that work best for you, just to keep your cash flow high. Others of you have said that Ramsey’s advice has changed your life, and have suggested many of his other books as well. You can read the discussion in the nomination thread here .
I will teach you to be rich , Ramit Sethi
Ramit Sethi’s I Will Teach You To Be Rich ($ 8 on Amazon) is a solid beginner tome on all personal finance and investment. You’ve probably seen Sethi’s name here at Lifehacker before – we’ve talked about his financial advice and suggestions for years and even reviewed his book ourselves . Originally published in 2009, the book is primarily designed to break down complex financial issues into simple, actionable, and manageable tips that anyone can use and apply in practice. In fact, some people think his advice is too simple, but that’s the point: By making his suggestions actionable and easy to follow, you are more likely to actually do what he suggests, stick to it, and improve your knowledge. financial situation. The book includes suggestions on how to save for the future, automate your finances so that you pay off on time (and your debt decreases without worrying about it), and even find new ways to increase your cash flow through side concerts and other passionate projects. …
Those of you who nominated this book praised it for being easy to follow and not terribly obscure or dumb, as is usually the case in many personal finance books. You noted that it aims to give you the tools to improve your financial life without simultaneously preaching the dogma of financial freedom. Others of you have praised Sethi’s approach to finance as being more flexible and workable than many, so you were able to resonate more with him. You can read more in the book nomination thread here .
Your Money or Your Life Vicki Robin and Joe Dominguez
If you are looking for a book on personal finance that not only gives advice on finance, but also invites you to take a close look at the psychology of money, how people handle and talk about money, and how money plays out your goals and dreams, your money or your life ($ 10 on Amazon) is a great option. The book was originally published in 1992, but since then the advice and suggestions have remained compelling – largely because instead of focusing entirely on things like “save more and spend less,” the book seeks to highlight the reasons why we spend and teach you value experience, not things. It reminds you that spending money is not a bad thing – if it’s done for the right reasons – and reminds you to compare things like debt and purchases that you may not be able to afford with experience and future spending. which you can (or want) in exchange. In short, the book reminds you to look at money from the perspective of your life, not just your things. As many of its reviewers emphasize, the book is definitely life-changing and reminds you that your goal should be financial independence and satisfaction with how you spend and manage your money – not necessarily the wealthy.
Those of you who put forward this book have supported the idea that the book is not just a collection of tips to help you get out of your pile of debt – it is a guide to help you rethink the way you look and think about money. … completely, and after reading, you’ll think about how you handle it in terms of what makes you happy and protected, not just what makes you more money or keeps wolves from the door. The book is well known for helping people think about their purchases in terms of hours worked and time invested, not just dollars and, for example, “how quickly can I pay off.” You can read more in the book nomination thread here .
George Clason, richest man in Babylon
Book George Klesona ” The Richest Man in Babylon” (US $ 7 on Amazon), originally published in 1926, is actually a collection of short parables of ancient Babylon, each of which affects the financial theme, such as the compilation of the household budget, money management, business groom and more. … The book actually began life as a series of brochures and information materials from banks and other financial institutions aimed at teaching people advice on money management and how to deal with the ever-complicated world of personal finance. Even today, this book is a great tome of basics, told through simple and connected stories that anyone can learn from. If you are looking for a textbook on money management, or find other non-fiction books on personal finance boring, boring, or tedious to read, give this book a try. The stories are easy to follow and fun, and each one rewards you with a surprisingly relevant and specific lesson on how to make your money work for you, who you should and shouldn’t take financial advice from, etc.
Those of you who have pushed this book have noted that one of the best things about it is how close and disarming the stories are. Following the characters as they learn how to manage their finances and improve their condition makes you care about their success and also helps you take their stories to heart and apply the same basic principles in your life. Some people may shrug their shoulders and notice that the book is based on common sense, but if common sense was common, as we have already said, no one would be in debt and no one would have problems managing their money. You can read more in the book nomination thread here .
Get a financial life , Beth Kobliner
Beth Kobliner’s Get a Financial Life program ($ 10 on Amazon) is designed specifically for people between the ages of 20 and 30 to help them get their financial home in order before they start making decisions that could harm their future. If you are saddled with student loan debt over your college years and want advice on how to pay off effectively, you need to understand the basics of things like health insurance and why you get bills even if your insurer pays for other things, and I have no idea how you can ever save money for your own home, this book is for you, and it will help you understand how these things work. Since none of these are taught in school, this book is an excellent reference for most financial topics of interest to people younger than middle age. Kobliner offers tips on how to manage 401 (k) even in the rough diamond market, how to get and avoid debt, even if you are tempted by new and exciting purchases at every turn, how to increase your income and invest those extras. to your goals and much more. Best of all, it is great for people who make little or no money, or people with high paying jobs, wherever you are.
Those of you who have nominated this book have emphasized that while many other financial books are great for older people who struggle with things like mortgages, multiple auto loans, kids and families, and retirement savings or healthcare spending, this book is great for a bewildered youth with purchasing power, some school debt (or credit card debt) and doesn’t know what to do next or how to manage their money now that they’re on their own … You can read more in the book nomination thread here .
Now that you’ve seen the top 5, it’s time to put them up for a general vote to determine the Lifehacker community favorite:
Honorable Mention this week – the work of David Chilton “Rich Barber” ($ 10 on Amazon), which many of you praised as a serious, simple and understandable guide for drafting their own financial plan and progress on the road to financial independence. … Narrated through the eyes of a fictional hairdresser named Roy, Chilton shows you how to make the most of the money you make, whatever it is, and how to use it to carve your own path to financial happiness, whether that means you. ‘ ‘. shift money or live comfortably without worry. It’s fun, funny, and easy to read. Read more in the nomination thread here .
Do you have anything to say about one of the applicants? Want to substantiate your personal favorite even if it wasn’t on the list? Remember, the Top 5 is based on your most popular nominations from the Call for Applicants thread earlier this week . Don’t just complain about the top 5, let us know which option you like best and justify it in the discussions below.