Are you determined to turn your financial situation around?
Is this the year when you finally take action to master the money game, pay down your debts, and start saving for the first time?
Well, we applaud you!
Making this commitment is something the vast majority of people could benefit from nowadays. Heck, the latest statistics from debt.com reveal that 50% of households live paycheck to paycheck, with almost one-fifth having no money set aside to cover an emergency expense.
Moreover, low income isn’t necessarily to blame - the same source notes that just 20% of individuals in a financial bind fall below the poverty line.
So why else would so many of us struggle to manage our money?
All sorts of reasons.
Yet a lack of financial education’s a big part of the problem. Most of us never get taught this stuff! We’re left to figure it out for ourselves- often developing bad habits that get us into trouble along the way.
In your bid to bolster your bank balance in 2022, then, boosting your understanding of personal finance will be crucial to success.
And, thankfully, there’s a wealth of reading material on the topic to help!
Do you want to find out about the best books for the task?
We’ve scoured the proverbial shelves and put together a list of awesome options to get you started. Read on to discover 5 first-rate books for learning more about finances and healthy money management.
“I Will Teach You to Be Rich” by Ramit Sethi
Boasting a slew of 5* reviews, Ramit Sethi’s best-selling book, “I Will Teach You to Be Rich”, is the perfect place to start this list.
The subtitle says it all:
“No Guilt. No Excuses. No BS. Just a 6-Week Program That Works”.
It might sound too good to be true, but this book (and website that shares its name) has built up a loyal following among aspiring savers and finance enthusiasts alike who rave about its unique ability to affect change.
The goal of I Will Teach You to Be Rich is simple:
To help you determine and attain what Sethi calls your “rich life”. In other words, the life you’d love to live now if only you had the money to do so.
In it, you’ll encounter his tried-and-tested process for generating wealth.
No tricks or untruths here. Sethi walks you through a long list of proven principles, systems, and processes anyone can use to reduce their debts and establish a strong financial foundation to use as a springboard for ongoing growth.
Specific examples include:
- Rapid debt-reduction ideas
- Tips on how to negotiate a pay rise
- Insights on setting up no-fee, high-interest savings accounts
- How to automate your finances to work for (rather than against) you
- How to save without sacrificing on the things you love most
- Simple, no-headache investing strategies
- Tips on planning ahead for big future expenses
I Will Teach You to Be Rich places an emphasis on investing as a primary route to wealth generation. But don’t let that put you off. Sethi explains masterfully how you can navigate this world and leverage its potential for generating wealth over time.
The information’s easy to digest. The style is entertaining and easy to read. And the proof is in the pudding: by all accounts, his methods work.
As for the author, Fortune once called Ramit Sethi the “new guru on the block” and Forbes has described him as a “wealth wizard”. The verdict’s unanimous: he knows what he’s talking about!
And he shares his insights with you in I Will Teach You to Be Rich. We highly recommend it.
“The Total Money Makeover” by Dave Ramsey
The path to digging yourself out of financial difficulty and becoming more prosperous can seem long and daunting. For many people, it’s hard to know where to start and even harder to stay motivated as the months go by.
If so, then The Total Money Makeover by Dave Ramsey will be well worth reading.
A powerful combination of inspirational and informative, it’s a great introduction to a basic process you can use to get long-term results. Ramsey himself is an author, radio host, and financial pundit who overcame personal bankruptcy to generate an eye-watering estimated net worth of $200 million!
One thing we love about The Total Money Makeover is its simple and no-nonsense approach to making money.
Ramsey isn’t trying to flog a get-rich-quick-scheme here. Instead, he’s offering a common-sense game plan for establishing healthier money habits that will, without fail, lead you to a wealthier life if you follow it.
The basic idea is this:
Stop trying to keep up with the Jones’s.
If you resist the temptation to buy what you can’t afford now, while simultaneously paying off debt, then your future will be bright.
Of course, Ramsey elaborates beautifully on this concept and presents readers with a concrete, step-by-step method (“The 7 Baby Steps”) for saving money and achieving their financial goals.
Not only that, but he also discusses some common money myths that could be hindering you. Throw in the uplifting real-life stories of everyday people who followed his advice and you end up with a winning cocktail.
Expect to feel encouraged by Ramsey’s positive writing style and empowered to make changes. All told, The Total Money Makeover is a must-read for anybody looking for a straightforward approach to personal finance.
“Secrets of the Millionaire Mind” by T. Harv Eker
Why do some people get rich and others don’t? How can some people afford to drift around the Caribbean on a luxury yacht when many can’t even pay their bills? What separates these two sets of individuals?
Is it intelligence? Confidence? Dumb luck?
Not according to T. Harv Eker. For him, the answer’s simple:
Their mindsets are different.
Or, to put it another way, it isn’t what you know, but what you think, feel, and believe about money that really counts.
According to Eker, everybody has their own “money blueprint” that dictates their financial outcomes. This blueprint is “…your preset program or way of being in relation with money”. The idea is that our early exposure to money informs our relationship with it and determines our future financial outcomes as a result.
The book, Secrets of the Millionaire Mind, is divided into two parts.
Part 1 details the Money Blueprint concept and how it works.
Eker walks you through your childhood and reveals certain influences that may have led to your current position in life. More importantly, he teaches you to recognize your own blueprint and realize where there’s room for change.
Part 2 is where the notion of the “millionaire mind” comes into play.
Here you’ll be introduced to 17 so-called “Wealth Files” - declarations that Eker believes distinguish rich people from the rest.
For example, “Rich people focus on opportunities. Poor people focus on obstacles.”
If you take these to Wealth Files to heart and make appropriate changes to your money blueprint, then, in theory, you can develop the millionaire mindset that’s necessary for becoming affluent.
As for the book itself, expect to be engaged and entertained from the outset!
Eker offers serious food for thought that’ll challenge you to look inward and ask the question: “how are my beliefs about money impacting my capacity to earn it?”
That’s not all though.
Thanks to the “secrets” Eker shares, you’ll come away with useful tools and strategies for finding answers and implementing change. Expect to feel motivated, empowered, and all set for new heights of success.
“Think and Grow Rich” by Napoleon Hill
No list of books about wealth generation would be complete without “Think and Grow Rich” by Napoleon Hill!
First published way back in 1937, it’s something of a classic and a must-read for anyone interested in this topic.
In some ways, Think and Grow Rich shares a similar thesis to Secrets of the Millionaire Mind. After interviewing and investigating 500 of the richest men of his time, Hill attempts to explain what separates the world’s wealthiest people from those with a much lower net worth.
Decades of research led Hill to identify certain characteristics that these individuals shared, which he translates into 13 specific steps to becoming rich- with desire and action at the very center.
This ever-popular book walks you through each of these steps in turn, diving into inspiring real-world examples of people who successfully followed the principle in question.
Now, if you’re looking for practical, actionable, “nuts-and-bolts-style” tips on improving your financial health, then this isn’t the book you need!
But it’ll be perfect for anyone who a) wants a birdseye view of what it takes to be successful and b) feel motivated to get started.
Think and Grow Rich isn’t without its critics! For instance, some people point to the presence of unsubstantiated claims, not to mention references to various mystical matters.
For every naysayer, though, there are 10 others who celebrate the wisdom on offer. Give it a read and make up your own mind!
“Your Money or Your Life” by Vicki Robin and Joe Dominguez
Last but not least, we have a personal finance book with a twist.
“Your Money or Your Life” isn’t your typical tale of how to invest, budget, and save (although it contains elements of each).
No, this much-loved book from Vicki Robin and Joe Dominquez is more like a cross between Tim Ferriss’ “The 4-Hour Work Week” and Dave Ramsey’s “The Total Money Makeover” that we just discussed!
In some ways, it’s a book about time as much as money.
The authors emphasize how precious the limited time we have on this planet is and point out that working 40+ hours a week to earn money for material possessions isn’t necessarily a fair (or sensible) trade.
Many of us are tired, stressed out, and unable to see our loved ones around our hectic schedules. And for what?
To keep up with the Jones’, sustain luxurious lifestyles, and buy material things.
They encourage the reader to question the status quo. If you reduce your expenses, boost your income, and invest what you can afford to, then you could set yourself up for early retirement and, ultimately, a more fulfilling life.
That’s where the financial lessons enter the frame.
Your Money or Your Life lays out a 9-step roadmap for improving your bank balance to the point where you gain newfound freedom.
From calculating your hourly wage and tracking your expenses to reducing your outgoings and redefining work, these steps are less about the management of money and more about shifting your relationship with it!
Since it was first published in the early 90’s, the book’s gained a loyal following of people who found themselves rethinking their finances and life in general.
Another thing we like about this book is that the authors speak from first-hand experience. Joe Dominguez, for example, is said to have retired at age 31, living on a mere $6,000 a year from then on.
Time to Read These Books on Mastering Money
With the books about finances and healthy money management on this list at your disposal, you can gain all the insights and inspiration required to turn the situation around. Keep them in mind, give them a read, and you should be one step closer to becoming more financially savvy this year.
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