10 Must-Read Personal Finance Books

Reading books is a great way to get educated on interesting topics ranging from history, mathematics, and science. In today’s day and age, books are readily available to anyone with the desire to read, and the range of topics mentioned is really an understatement.

Since not too many people can claim to be well versed in the realm of personal finance, reading a few pieces of literature on money, investing, and financial milestones is a great way to get up to speed with the money department.

One can revolutionize his or her financial standing by simply reading a few of these novels listed below. The list is not all inclusive and is in alphabetical order (not in order of significance).

7 Money Rules for Life

Mary Hunt outlines a simple and easy list of rules to follow in order to improve your financial standing. Her guidelines are meant to offer a way out for many people who find themselves in a hole. These seven rules can be applied to multiple different financing decisions, so it is a good resource for inexperienced adults breaking out into the financial world.

These seven rules are general and basic, so they can be applied to a wide variety of financial situations. It offers advice on how to get out of financial slumps, how to save well, and how to budget. The syntax is simple and easy to understand to the point that the book seems conversational.

Overall, this is a quick and easy read that offers good insight. With only seven rules to memorize, this material can be applied day to day through simple memory. The financial return on a small purchase such as this book makes this a smart investment.

Beating the Street

This is a must-read for anyone who finds themselves interested in the field of investing. Written by Peter Lynch, this book offers insight on purchasing stocks as well as the timing that goes along with it. Lynch has been in the stock game for over a decade as the Fidelity Magellan Fund manager.

There are several interesting things about this book. The author provides advice from experience about an analytical and risky business, yet the book is written with a conversational tone that creates a friendly read. In addition to his exploits, Peter Lynch comments on stock market trends in the past by providing analysis and background on the reasons behind these trends.

Overall, the book is a great read that is a great start for potential investors in the stock market. One of the author’s most notable pieces of advice encourages investors to research the companies they want to invest in. Chances are if they like the company they will like the stock of that company. For anyone new to the stock market game, this book should be on a list of materials to read.

Debt-Free by 30

This book is true personal finance material written by two men who know firsthand what it is like to be flooded by debt out of college. The authors, Jason Anthony and Karl Chuck, wrote this book after being fed up with the large price tags on their heads from debt.

This is a good guide for anyone who is looking to educate themselves on personal finance. The book is written in simple terms that anyone can understand, so this book is one of the first places to look for a neophyte in financial literacy. One of its main focuses is personal budgeting; the main idea is to tackle debt through the power of budgeting.

Overall, Debt-Free by 30 offers insight and allows its readers to learn through someone else’s mistakes. It is a great read for someone just out of college or currently attending college since those two demographics seem to have the least financial literacy.

I Will Teach You to Be Rich

True to its name, this piece of literature focuses on one thing and one thing only. Increasing your bank account until you are “rich.” The book was written by Ramit Sethi in order to reach anyone who seems to be stuck in a financial hole.

The book resonates with the millennial generation which is notorious for its debt and lack of financial literacy. It is essentially a beginners guide to credit cards, investing, budgeting, and banking, so the experienced investor or budgeter may have no need to read up on this piece.

Overall, this book covers basics in a readable fashion. It champions different easy methods that are meant to reach 85% of a financial goal. It is definitely one of the best beginner books to check out.

The Automatic Millionaire

For all of the aspiring millionaires, this book provides a success story and then some advice for anyone who wants to reach the millionaire club. The Automatic Millionaire, by David Bach, is not just another get rich quick scheme; it conveys methods and advice on accomplishing monetary goals with only minimal income.

This book starts out with a narrative about an American couple that is fairly average. They barely make over $50,000 a year combined, and they have a house with a couple kids. By the end of their children’s college enrollment, their house is paid off with over a million dollars in savings. Seems like a story that is worth the read.

Overall, this is a great book to read when in need of some financial advice. The strength of this piece is its relevance to so many Americans today. It offers a success story who’s origins can be directly paralleled with thousands of Americans today.

The Behavior Gap

Carl Richards wrote The Behavior Gap after working a career as a financial planner. The inspiration for the book came from his experiences at work; he reportedly witnessed countless mistakes made by normal people in need of financial assistance.

From his experience, he defined something known as the “behavior gap” which is the namesake for this book. In short, the behavior gap is the gap between rightful understanding of financial moves and the actual financial moves made. In other words, it is the difference between what we do financially and what we know we should do. This is somewhat related to Thinking, Fast and Slow since Richards mentions the emotional influences on the wrong decisions made by his clients.

The insight from an experienced financial planner serves this book well. If potential readers need help on cutting down on impulse purchases and unwise financial moves, then picking up a copy of this book is a great opportunity to improve financially speaking.

The Investment Answer

If you are going to judge a book by its cover, this book’s title is not going to lead you astray. The co-authors, Daniel Goldie and Gordon Murray, offer their ideas on investments; additionally, they provide insight on the inner workings of the market and its trends.

The Investment Answer is a resource for smart investing; it provides advice on how to invest widely in order to multiply finances. Another aspect of this book covers personal finance in relation to investing. One of its strengths is the clear cut manner in which it was written; it is a good and easy read.

Overall, the book is a solid read for anyone who is interested in investing in the stock market. It holds the perspective of two accomplished and knowledgeable investors who detail market tendencies with ease. For those who want unique advice, The Investment Answer may be the solution they are looking for.

The Millionaire Mind

Quite an interesting read is one way to describe The Millionaire Mind by Thomas Stanley. This book is a unique and compelling insight into the minds of the richest people in society: millionaires. The author sent out multiple surveys to the rich portion of the population in order to get an understanding on how these individuals act. The insight on the inner workings of a millionaire’s mind is sure to interest many people who are currently trying to make millions.

This book provides several insightful and surprising pieces of information. One surprising find is the origin of most of these millionaires; for instance, many of them did not perform well in school at a young age. Plenty of them did not attend one of the prestigious colleges that are so exalted today. It stresses the financial moves and risks taken in order to acquire their fortune.

Overall, this is a unique book to check out. Since it offers insight on the mind of a millionaire, it is sure to have advice that is worth reading. A reader may find that there are some parallels between his or her mind and the mind of a millionaire.

Thinking, Fast and Slow

Written in 2011 by Daniel Kahneman, Thinking, Fast and Slow was a best seller that delves into the cognitive processes of the mind. This brain analysis is translated over to financial decisions in an attempt to explain why humans make certain money or investment decisions. It is a good mixture of economics and cognitive science.

This book analyzes two separate mental systems known as “System 1” and “System 2.” The first system is a fast, frequent, and emotionally driven decision making process; it is essentially the subconscious response to any sort of input our minds receive. The second system is the opposite since it involves slower and more logical approaches to making a decision. This system can be associated with conscious thought and responses. These cognitive response systems play a major role in stock market decisions which is one of the main topics of this book.

Overall, this is a unique and interesting book to read. It offers insight on the cognitive response of the brain and somehow translates all of this to major economic decisions in the stock market. Connecting human cognition with economic trends is definitely something new to look into.

You’re So Money

You’re So Money is a financial advice book that tries to teach its readers how to get the most out of life without killing their bank account in the process. It offers insight on financial moves and how they factor into financial standing in the long run; additionally, it gives advice on the right times and worst times to make these decisions.

One of the major points of this book is to spend money in the right way, but another key characteristic is the inspiring tone. It essentially tells the reader they can do whatever they want with their finances in order to achieve whatever goal. There is some advice on how to invest and spend, but the main allure of the book is a promise of getting rich.

Overall, the book is an interesting read, and it offers several ways and advice on how to get rich. It is an inspirational piece that aims to get people spending in a way that maximizes the life experience. Most likely a good read for some financial beginners, or someone who needs a little bit of extra motivation.