Understanding the personal relationship with money and how it affects decisions is arguably one of the most important skills everyone should acquire. Personal finances differ from person to person and can leave one feeling overwhelmed and stressed.
We have compiled a list that will have you well on your way to better understanding the topic at hand.
Without further ado, here is our selection of eight personal finance books – in no particular order – that will build your confidence. And for simplicity, we added categories for each book to provide quick picks at a glance.
‘Why Didn’t They Teach Me This in School?’ by Cary Siegel: Good overall knowledge
Siegel dives into eight lessons focusing on 99 principles that help readers handle their personal finances with confidence and ease. Originally the book was written for his five teenage children who were due to enter adulthood. But soon after, he realized his lessons apply to all adults.
A quick and easy read. “Why Didn’t They Teach Me This in School?” is one of the first personal finance books you should reach for if you are looking to expand your personal money management skills.
‘The Intelligent Investor’ by Benjamin Graham: Investing
Graham’s work was first published in 1949 with the idea to help investors through the principles of value investing. This is a great book to read if becoming a better investor is top of mind.
“The Intelligent Investor” instructs readers to invest in companies based on their financial health, competitive advantages and management team, not based on market trends, invest for the long haul, diversify the portfolio, and ignore financial media/analysts.
This book provides valuable lessons. And for that reason, it would be a great first read for someone new to the personal finance world.
‘The Total Money Makeover’ by Dave Ramsey: Debt management
Another straightforward approach to finances, this New York Times bestseller is designed to help you get out of debt, break bad habits, build a better relationship with money and secure a healthy nest egg for emergency situations, all while learning to become financially healthy.
If Dave Ramsey is up your alley, you’re in luck because he also hosts a nationally syndicated radio show called “The Dave Ramsry Show,” where listeners call in to seek help in real time.
Overall, this book would be best for those dealing with debt and who are looking to gain control of their finances.
‘I Will Teach You to Be Rich’ by Ramit Sethi: For spenders
And speaking of debt management, our next pick is for all those spenders out there. “I Will Teach You to Be Rich” by Ramit Sethi was released in 2009 and has since become a New York Times Bestseller.
This book is designed to help you boost your income and save more money, all while living a rich life. And don’t take my word for it. Sethi has managed to become a self-made millionaire and advises readers to do basic things such as invest, push for the salary you deserve, and get going on that interesting side hustle that has the potential as another revenue stream.
‘The Psychology of Money’ by Morgan Housel: Psychology
Morgan Housel’s “The Psychology of Money” shares 19 short stories that show how people tend to think about money.
This book is a great addition to any of the other ones on our list because this book highlights how our behaviour around money is more important than what we know about the topic. This book may bring much needed clarity on financial decision making, adding simplicity to personal finances.
‘The Richest Man in Babylon’ by George S. Clason: Simple premise
No. 6 is an oldie but a goodie. “The Richest Man in Babylon” is a book that was released in the 1920s. This book is unique in that it gets its point across using parables from more than 4,000 years ago in ancient Babylon.
Through the tales that are relayed, Clason writes about the secrets behind creating, growing, and keeping wealth. Fast forward to today and the book is still seen as one of the top classics of personal financial advice.
‘Broke Millennial’ by Erin Lowry: Beginners
Another must read, especially for those millennials and older Generation Z-ers.
“Broke Millennial” supplies practical knowledge to the younger generations, but from a young personal finance expert. Lowry lays out essential reasons to understand your relationship with money, how to manage those student loans, and how to – quoting Lowry here – get “financially naked” with your partner, meaning finding out their debt number.
In addition, the book has hilarious true stories making this read very different from the others on our list. I should also mention, this is the first book in a three-part series. The second being “Broke Millennial Takes on Investing: A Beginner’s Guide to Leveling Up Your Money”, and “Broke Millennial Scripts, Stories, And Advice to Navigate Awkward Financial Conversations”.
Because of the wide reach this series has, it was an easy choice for our list.
‘The Financial Diet’ by Chelsea Fagan: Beginners
And with that, we have reached our final pick, which is bound to put any beginner financial learner on the right track. Coming in at No. 8, we have “The Financial Diet”, by Chelsea Fagan.
This pick goes hand in hand with “Broke Millennial” in that they are both great for beginners. Fagan provides money strategies such as investing and budgeting, and she even covers the topic of love. Fagan once saw herself in a less than ideal financial situation with debt collectors calling her and being broke. So, who better to learn from than Fagan, who managed to do a 180 in her financial life.
We hope you enjoyed this top eight list of personal finance books that breaks down ways you can achieve more financial freedom. Remember, do your own research before investing or seek out a financial professional who might be able to help achieve your financial goals.
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