The 6 Best Personal Finance Books in 2022
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Personal finance is a term that everyone must learn to get familiar with, it allows us to determine and highlight our current financial situations that can use to manage the balance sheet in a good wheel- where income exceeds expenses.
In other words, you become smarter with money because you have learned all the basic financial skills and knowledge. In particular, those who have high financial education, normally tend to pay less for their taxes, know how to diversify their income streams, and make money work harder for them by creating different side hustle ideas.
In addition, they constantly look for other passive income ideas to generate extra cash, which allows them to invest in other assets and cover their living expenses.
There is a list of the best finance books for your consideration. You should continue to read each one in more detail in order to get familiar with the general information of each book.
- The Millionaire Next Door – Best for personal wealth management and learning the habit of other rich people.
- Why They Didn’t Teach Me in School – Best for students as they can learn all the foundation knowledge.
- Rich Dad and Poor Dad – Best for beginners to manage money using the cash flow quadrant.
- The Total Money Makeover– Best for creating good money habits
- Financial Autonomy – Best modern personal finance books- stocks, real estate, and side hustle businesses.
The list of best personal finance books for beginners. They should learn the basic financial concepts, principles and foundations in order that they can be smart with money in terms of money management and create a successful budget.
- Mental fortitude and money habits play a key role in defining a person’s financial success.
- Financial Autonomy, and Rich Dad and Poor Dad are must-read books if you want to build a foundation of knowledge in real estate and investing.
- Best investing books provide real value in terms of knowledge accumulation over time.
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The following are the best personal finance books for beginners and college students to learn and build foundational knowledge in terms of creating a successful budget to achieve long-term financial goals.
In addition, you also have a chance to get familiar with the stock market and real estate investment as well as learn different ways to make extra income by building a side hustle business.
1. The Millionaire Next Door. (Financial management book)
The first super personal finance book to highlight is “ The Millionaire Next Door” by Thomas J. Stanley and William D Danko- the first edition was published back in 1998 and then co-authors continued to release the second edition in 2010. Those were among the best-selling books of all time.
It is one of the best investing books for beginners because it provides the 7 common habits that most rich people use to accumulate wealth over time.
By conducting studies of rich people in The United States, the author identified seven common traits about personal finances that you can learn and imitate to achieve financial freedom.
The most interesting fact from the research is that most millionaires don’t live in expensive areas like Beverly Hills, instead they live frugally and are able to use the saved money for investing over time and improving their financial status.
Personally, “The Millionaire Next Door” is among the best personal finance books of all time because it teaches you how to be smart with your money, and everyone can achieve financial freedom if they know how to save and invest money wisely
Read next: 6 Best Stock Market Investing Books for 2022
2. Why They Didn’t Teach Me in School- Best Personal Finance Books
The author, Cary Siegel- of “ Why They Didn’t Teach Me in School” has an MBA from the University of Chicago. Before retiring, he managed to work in several top positions in marketing and sales in the top 500 fortune companies. Importantly, this book was published before his retirement at the age of forty-five and became one of the top-selling books in the New York Times.
This is one of the best finance books for students because it teaches all the basic foundations and principles of financial habits.
Why do I rank this highly-rated money management book on the list?
The author figured out that most people in high school and college don’t get familiar with all personal finance principles because they have no opportunities to learn about personal wealth management.
In particular, the book provides several lessons including 99 money principles that will help to improve individual money management skills, if you fully adopt them in your daily life.
Hence, this best-selling book is a gift to those who want to improve their financial situation.
3. Rich Dad and Poor Dad- Best Personal Finance Books
Robert Kiyosaki first published “ Rich Dad Poor Dad” back in 1997 and it was considered one of the best investing books for beginners, who are interested in money ( cash flow quadrant), finance, and real estate investment.
Robert is especially interested in real estate investment- you can find his arguments and suggestions are pretty associated with property investing. Importantly, the author emphasizes the importance of creating a strong cash flow based on income and expenses, which you can use the saved money to invest in real estate.
In addition, the author also clearly explained the difference between liability and asset, which most people are confused about between assets and liabilities.
Once you understand the basic theory in the book, it will help you to make a better financial decision based on your personal situation and avoid being trapped in the debt.
Robert used Rich Dad and Poor Dad as an example of personal perceptions toward money and clearly explained how you can change your financial habits by creating different sources of passive income streams for your investment portfolio.
Personally, this book is one of my favorites because I learned all the basic knowledge and foundation before jumping into the advanced level in personal finance.
4. The Total Money Makeover- Best Personal Finance Books
“The Total Money Makeover” was published in 2003 by one of the best-selling authors, Dave Ramsey. He is considered a successful finance author who published several best-selling books that teach people to get better with their personal finance.
This book provides a straightforward strategy for personal finance based on the compiled game plans that you can learn and be able to make a smarter decision based on your personal financial situation.
By executing those financial methods and principles, users can be able to achieve their financial independence if they know how to apply those financial habits to daily life.
In particular, the book provides a step-by-step action plan to create an emergency fund, how to pay off your mortgage, how to build a retirement plan, and finally is to help you to compound your wealth at a rapid pace.
5. Financial Autonomy
“Financial Autonomy” is one of the best investment books for beginners who want to explore different paths to wealth. In particular, stock market investing is one vehicle to achieve long-term financial goals.
The book gives detail about how to select different types of assets to suit your financial needs and expectations. In particular, you will learn deeper insight into how to choose the most qualified company and get familiar with all the fundamental analysis and principles to help you avoid a significant loss in investing.
Paul Benson is a financial expert based in Australia. He published the Financial Autonomy book right after the Covid-19 pandemic. The following are three main concepts that emphasize different paths to wealth.
1. Stock/equity investing– P/E techniques and dividends. Moreover, the author also provides advice to minimize the loss while investing, which beginners should consider diversifying their investment portfolio
2. Real Estate investing– Talks about different investing strategies associated with property investment. You will learn how to either invest in a commercial or residential estate.
3. And Self-Employment– is the third wealth creation vehicle, which highlights the step by step to build a side hustle business
Overall, we have gone through a thorough review and analyzed the best personal finance books for college students and beginners.
Based on my experience, you should consider reading ” Financial Autonomy and Rich Dad and Poor Dad” in order to understand and get familiar with the foundation concepts of personal finance in terms of creating a budget (cashflow quadrant), and managing personal finance in a good way.
Those financial management books are considered a great way for beginners, who want to create a better budget and achieve long-term money goals.
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By Jiro Nguyen.
The content is only based on the author’s personal opinion and experience. It is for informational purposes only and does not rely on as a comprehensive or substitute for professional advice.
What are the best finance books to read?
The following are the best finance books to read. 1. Rich Dad and Poor Dad – Best for beginners to manage money and understand the cash flow quadrant. 2. The Psychology of Money– Best inspired psychology book 3.The Millionaire Next Door – Best for personal wealth management and learning the habit of other rich people.
The 6 Best personal finance books
You should consider reading those best personal finance books on your bookshelves. 1. The Millionaire Next Door 2. Why They Didn’t Teach Me in School 3. Rich Dad and Poor Dad – Best for beginners to manage money managing cash flow. 4. The Psychology of Money 5 The Total Money Makeover 6. Financial Autonomy
What are best financial books for beginners?
The list of best financial books for beginners due to the fact it contains foundation knowledge and easy to understand the language of money. 1. Financial Autonomy 2. Rich Dad and Poor Dad 3.The Millionaire Next Door