Mark Twain famously said that the man who does not read has no advantage over the man who cannot read.
To add more power to your personal finance strategy, it is always a prudent idea to obtain the best possible information, guidance, and inspiration from some of the best personal finance books of all time.
The Psychology of Money
Morgan Housel’s The Psychology of Money is one of the latest books in the world of personal finance, and has quickly secured its position as a phenomenal bestseller in this genre.
The book focuses on how your preconceived notions, biases, ego, and presumptions can become a hurdle in your money-related decisions, and how you can overcome them. The book is eminently readable as it provides guidance in the form interesting short stories around the subject.
Rich Dad Poor Dad
Robert Kiyosaki’s Rich Dad Poor Dad is one of the most widely known books that has topped the bestseller lists for more than 20 years.
Kiyosaki gives his message by sharing what he learned from his father (poor dad) and his friend’s father (rich dad) while he was growing up. The book highlights how anyone can get rich with simple money strategies. It also encourages parents to teach their kids what they won’t learn at school about personal finance.
The Little Book of Common Sense
The legendary investor and founder of The Vanguard Group, John C. Bogle, who made index investing popular, wrote this unique book. It explains all the fundamental concepts of investing in a simple language.
The Little Book of Common Sense will encourage you to spend less time and energy in trying to pick the right stocks that can make you rich overnight, and focus more on growing your savings rate. According to Bogle, for the average investor, index funds might be a more sensible choice than individual stock investing.
The Millionaire Next Door
The Millionaire Next Door is the product of extensive research by its authors Thomas Stanley and William Danko, who analyzed American families with a net worth in excess of $1 million.
The book describes most people as “UAWs” or “Under Accumulators of Wealth” because their net wealth is relatively low compared to their income. It goes on to suggest strategies on how you can increase your net worth compared to your income.
Think and Grow Rich
This book by Napoleon Hill has continued to be one of the finest books on personal finance for nearly a century.
In 1930s, the author began interviewing prominent industrialists and investors of that era to obtain their insights into wealth creation. “Think and Grow Rich” was the culmination of that extensive exercise.
The central theme of the book is that “greed is good,” provided you believe in sharing wealth. Your desire and determination to make money is the key driver of your financial success.
The Total Money Makeover
Managing your debts is a vital element in your personal finance strategy. No book explains this concept better than The Total Money Makeover by Dave Ramsey. It talks about how you can attain freedom from expensive debt and how to avoid pitfalls, such as cash advances and rent-to-own.
The book explains the now-famous “snowball technique” to get rid of debts, and provides advice on how to save for retirement, college education, and building an emergency fund.
Bonus: We should also mention One Up On Wall Street by Peter Lynch. If you want to learn the basics of investing (such as P/E and PEG ratio) this book is exceptional.
