8 Must-Read Personal Finance Books To Reach Financial Freedom

If you’re ready to become an expert at managing money, then you need to know about these personal finance books. Books that contain some of the top personal finance tips that guarantee you will reach financial freedom in no time. That way you no longer have to wonder how to get personal finances in order, and instead live a life without any financial stress.

Many personal finance books are available so that understanding money doesn’t have to be difficult.

After all, financial literacy isn’t really a subject that is taught to you while you are in school.

As someone who knows of the many personal finance books that exist, I know how life-changing they are!

You are going to be learning about personal finance books for beginners you need to be reading right now.

That way you can learn how to track spending, how to save money, how to invest in stocks and so much more!

This post is all about personal finance books worth reading that help you become better at managing money.

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Must-Read Personal Finance Books

What Is The Best Way To Learn Finance For Beginners?

When it comes to learning finance for beginners, there are a couple of ways to go about this.

One way to approach learning about money is through conversations with other people. Another way is to listen to podcasts about personal finance.

However, the best way to learn about finances when you’re a beginner is by reading the top personal finance books!

Books not only provide knowledge that can greatly benefit you, but they oftentimes include exercises throughout their chapters. Exercises that get your brain thinking so you can begin taking the first step of your journey to financial freedom.

What Is The Best Financial Book Of All Time?

In all honesty, it is very difficult to select just one book out of the many that exist as the best one.

Though every book on this list aims to help you become better at managing money, each one offers different lessons. Lessons that will motivate you to get up and start working on accomplishing your personal finance goals!

The beauty about books is that you don’t have to stop after reading just one.

You can keep reading the best selling personal finance books to continue adding to your current knowledge!

What Should I Read To Become Financially Literate?

Listed down below are some of the best finance books of all time that guide you towards financial independence!

Each book provides you with a healthy amount of knowledge that will last you a lifetime and help improve your financial literacy.

1. Smart Women Finish Rich

First up on this list of financial books worth reading is Smart Women Finish Rich by David Bach. If you’re looking to create your personal road map to financial success, then this book is made for you!

As you’re reading through, it will feel as if David is right there with you as your personal financial coach. He teaches you about saving money, investing money and making money in a way that is very easy to understand.

The best part about the advice David gives is that all it takes is 8 simple steps to get you on the right path to financial freedom!

In addition to his financial advice for women, he includes a couple of exercises for you to do. These exercises are to help you begin feeling confident in knowing how to handle money.

One important lesson David mentions is that learning about money is a process that never really ends.

However, by mastering each step, you will feel more than ready to take on any new lessons about money. Allowing you to easily continue improving your money skills.

After reading this book, you will feel empowered to start applying the new knowledge you have learned. That way you will be in full control of your personal finances and one step closer to the life you have always dreamed about!

2. Rich Dad Poor Dad

Next up on this list is a book that many people consider one of the best books about money. Which is Rich Dad Poor Dad by Robert T. Kiyosaki.

Many favor this particular book because the lessons you will learn help you understand financial literacy on a deeper level!

Through his own childhood experiences, Robert shares the different financial mindsets between his own poor dad, which is his biological father, and his rich dad, which is his friend’s father. As he shares his story, he provides steps and strategies for you to begin implementing in your life!

One lesson you learn is to change your mindset to begin thinking more like an investor, rather than a worker. Meaning, making your money work for you, rather than you working for your money.

Another lesson is that in order to know how to be financially successful, you need to focus on financial education. A lot of financial problems and unnecessary financial stress stems from schools and colleges not teaching you about money.

A third lesson is to take financial risks and not be afraid to do so. However, you want to make sure that you calculate the risks you are taking. Doing so allows you to begin investing daily, whether it be in stocks, bonds or real estate, to create multiple streams of passive income.

These are just a couple of financial lessons you will learn. There are of course many others that will make you understand why this is one of the best financial books for beginners!

3. I Will Teach You To Be rich

Want to learn how to be in control of your finances in just a couple of weeks? Then I Will Teach You To Be Rich by Ramit Sethi will provide you the financial knowledge to do so.

The steps Ramit discusses will aid you in transforming your relationship with money in a matter of just 6 weeks!

In these 6 weeks you will learn the following:

• Week 1: How to optimize your credit cards wisely.
• Week 2: How to set up the correct bank accounts.
• Week 3: How to open up an investment account.
• Week 4: How to manage money wisely through a conscious spending plan.
• Week 5: How to automate savings like a pro.
• Week 6: How to invest money to make money.

In addition to this, he makes it very clear that you don’t need to be a financial expert in order to become rich. Instead, all you need is a basic understanding about money in order to build a financial plan that helps you get to where you want to be in life!

A life where you get to earn more money and save more money, rather than living paycheck to paycheck with no financial goals in mind.

One key note to take away is that the earlier you begin applying the knowledge Ramit shares, the better. Making this one of the best financial books to read in your 20s!

4. The Millionaire Next Door

Believe it or not, most millionaires don’t live a lavish lifestyle that includes living in a big house, owning fancy cars and expensive designer clothes. Instead, they prefer to live what most consider a modest life.

Which is what Thomas J. Stanley and William D. Danko go over in their book The Millionaire Next Door.

They take the time to debunk many myths about the very wealthy through their extensive research they conducted interviewing hundreds of millionaires. As you read along, you will get a more accurate picture of how the average American millionaire actually lives.

However, this isn’t just all that you will learn. They also provide life-changing financial advice that you can implement so that you too can work towards becoming a millionaire!

Part of the advice they give is an overview of the 7 common denominators of wealthy people. These common denominators include:

• Live well below your means.
• Use time, energy and money efficiently.
• Prioritize financial independence, not wealth artifacts.
• No “parental economic support”.
• Nurture self-sufficient adult children.
• Leverage market opportunities.
• Choose the right vocation.

As you begin to practice these money habits of the very wealthy, you will understand the true importance of being proactive with your finances. The more you stick to these habits, the closer you will be to experiencing the financial freedom that so many millionaires worked for and get to enjoy on the daily!

5. The Psychology Of Money

One of the best ways to learn about tracking personal finances, how to make a monthly budget, and how to save money fast on a low income is through the stories of others.

In The Psychology of Money by Morgan House, you will read about plenty of short stories that help you understand how others think about money.

Rather than taking the traditional route and only talking about numbers, he dives deep into human psychology and how it connects to finances. Allowing you to understand how your emotions, biases, and your ability to make certain money decisions play an important role in your financial success!

Some essential lessons you will learn that will stick with your forever include:

• No one is crazy: We all handle money differently so although someone’s financial decision may not make sense to us, it may be the perfect decision for them.
• Luck and risk: These go hand in hand with each other and together they play a huge role in almost every single outcome you can possibly think of.
• Never enough: Rather than comparing yourself to others, you need to define what “enough” means to you.
• Failures and errors are inevitable: Obviously we can’t completely predict the future, but you can most definitely prepare for the unpredictable by having money saved up to fall back on.
• Know the game you are playing: Surround yourself around and take advice from those that are playing the same game as you rather than those playing a completely different game.

Because of the endless amount of financial lessons you will be learning about, you will see why many people put this book at the top of their list of the best books on financial literacy!

6. Financial Feminist

It’s no secret that the world oftentimes sees women as the ones that constantly practice frivolous spending. In turn, discouraging many women from getting into the driver’s seat and proving that this is nothing but a misconception.

Which is why this next book is a must-read for all of my women out there that want to finally become financially stable!

Financial Feminist by Tori Dunlap teaches you everything you need to know to power through any obstacles getting in the way of you achieving financial freedom.

She even does it in a way that is easy to understand and that most would say is a judgement-free approach!

That way you don’t get frustrated as you use her lessons to begin your journey towards a healthier financial life.

A couple of the powerful lessons Tori teaches you are:

• Build an emergency fund: Make sure that you have at the minimum three months worth of money saved up for living expenses before making other financial moves.
• Practice no restrictions: If there is something you really want to buy, go ahead and buy it but make sure that you budget for it.
• Track your spending: Take a step back and see where you actually stand with your money. Do so by tracking where your money goes to.
• Pay off high interest debt: The higher the interest, the more money you will have to pay. So make sure to prioritize paying this off.
• The 3 bucket budget: Simplify your budget by creating one bucket for your bare necessities, one for your goals, and finally one for the fun stuff.

This book will show you that sometimes all you need as a woman is hearing another woman provide financial advice to feel confident about accomplishing your money goals!

7. The Total Money Makeover

Learn how to take control of your finances from one of the best money management books written by one of the top financial gurus out there!

That book being The Total Money Makeover by none other than Dave Ramsey.

Financial guru Dave Ramsey skips out on giving any false promises and instead keeps it completely real. He does this by providing you with a game plan that is easy for beginners to follow along with!

Through his teachings, you will learn what he calls the 7 baby steps:

• Baby Step 1: Save $1,000 for your starter emergency fund.
• Baby Step 2: Pay off all debt (except the house) using the debt snowball method.
• Baby Step 3: Save 3-6 months of expenses in a fully funded emergency fund.
• Baby Step 4: Invest 15% of your household income in retirement.
• Baby Step 5: Save for your children’s college fund.
• Baby Step 6: Pay off your home early.
• Baby Step 7: Build wealth and give.

Basically, all of the best money tips you can learn to put yourself in the best financial situation possible. Ensuring that you live a life that leads to long-term financial success!

So if you have been wanting to know how to get out of debt, how to save money fast on a low income, and build a substantial amount of wealth using healthy money habits, make sure to give this book a read!

8. The Intelligent Investor

If you’ve been on a journey to learn how to invest money, then this next book will help you out!

The Intelligent Investor by Benjamin Graham is considered an investment classic that shows you exactly why he is looked up by most as the father of value investing.

By taking a different approach than others, he provides knowledge to help you gain a deeper understanding of the stock market. Rather than solely providing advice on how to beat the market, he teaches you how to reduce risk investment.

Some key takeaways you will get from this book include:

• Investing is a long-term game: Don’t expect to make tons of money in a matter of a couple of months. Instead, give your investments enough time to generate money and avoid frequent trading.
• Don’t always focus on the media: There will always be negative headlines surrounding the stock market. Rather than stressing out, remain calm and stick to your investment strategy.
• Diversification is a complete must: In order to reduce your overall investment risk, you need to spread your investments out. If one of your investments isn’t doing so well, your others might be doing very well. Allowing you to not have to worry so much.
• Keep your emotions in check: More specifically fear and greed. Make sure to take the time to fully analyze the situation before making your next step.
• Always be open to learning: It’s no secret that just like anything else, the world of investing is constantly changing. Keep an open mind and learn new skills that help improve your current investment strategies.

These lessons, along with the others you will come across, make this book one of the best books about money and investing!

This post was all about must-read personal finance books that guide you in reaching financial freedom.

Whether you are looking for the best books on saving money or books on saving money and budgeting, you now know of plenty!

Reading any one of these books will help you see why these are amongst the most recommended financial books.

Always remember that when it comes to personal finances, things are constantly changing.

Which is why it’s very important to continue expanding your knowledge by frequently reading books about money!

If you found even the tiniest bit of information from this post helpful, just know that it was made simply for you.