Reaching financial freedom is the ultimate goal of personal finance. All the efforts and money control are done so we can have enough money to spend in the future.
But while personal finance management comes naturally to some people, most people find it as tasking as climbing Mount Kilimanjaro.
Luckily, personal finance and financial freedom are widely discussed topics, and there are numerous books to point you in the right direction.
Upon reading these books, you will stop worrying about where your finance is heading and take control of your financial future.
Rich Dad, Poor Dad
Rich Dad Poor Dad a best selling personal finance books. Robert Kiyosaki, in this book, took readers through a reminiscence of his past. He told tales of his childhood and what he learned about money from his not-too-wealthy dad and his childhood friend’s wealthy dad, who happened to be one of the wealthiest people in Hawaii at that time.
The comparison focuses on how to manage money and make the best of whatever you earn. The book puts in perspective how a person’s thinking and mindset can affect their ability to build wealth. It emphasizes creating multiple income streams to earn passive income.
“When you are young, work to learn, not to earn.”
The Richest Man in Babylon
This is another classic personal finance book that contains a collection of fascinating tales of financial successes dating back to ancient Babylon.
It may read like a work of fiction, but underneath all of those are powerful financial lessons that many have found extremely helpful. It advocates hard work, self-discipline, saving, investing, as well as avoiding procrastination.
George S. Clasonfirst published the book in 1926, and it was more recently revised in 2010. It’s written in old English, which makes it all fun to read.
While the Richest Man in Babylon wouldn’t give you an action plan on how to become wealthy, it emphasizes the foundation of a strong personal finance life.
“The reason why we have never found a measure of wealth. We never sought it.”
The Total Money Makeover
When Dave Ramsey talks about personal finance, everybody listens. In this book, he shares a simple plan for getting out of debt and saving for retirement and your goals. It provides a solid foundation on how to achieve financial independence today and live comfortably when you retire.
The Total Money Makeover isn’t just another book; in 2007, Deacon Hayes of WellKeptWallet.com and his wife were able to pay off $52,000 of debt following the strategies in this book. There are also several amazing stories of other people who paid up their debts and experienced amazing transformation following lessons from the total Money Makeover.
“You must gain control over your money, or the lack of it will forever control you.”
The 4-Hour Workweek
In this book, Tim Ferris, who has written three bestsellers, walks you through how to create an escape route from a 9 to 5 job. Tim inspires you to work smarter and break free from being chained on the desk all day.
He teaches from personal experience on how he escaped the typical 9 to 5 life. Upon graduating from Princeton, Tim realized he never wanted to be a regular employee, so he had to make his on the way.
Tims exposes tricks that will help you save faster and set up passive income to allow you to live your best life.
“If only I had more money is the easiest way to postpone the intense self-examination and decision-making necessary to create a life of enjoyment—now and not later.”
The Millionaire Next Door
What comes to mind when you hear the word millionaire. I can bet living in a mansion, traveling across the world, and shopping extravagantly . Well, according to Thomas J. Stanley and his co-author William D. Danko that isn’t what most millionaires do. After interviewing and studying the behavior of hundreds of American rich people, they compiled various characteristics of the wealthy in this book. One of which surprisingly is that the rich live a rather simple lifestyle.
If you aspire to become a millionaire one day, then you should consider reading “the millionaire next door.”
“Whatever your income, always live below your means.”
Your Money or Your Life
Your money your life offers an unusual approach to personal finance. The authors Vicki Robin and Joe Dominguez shed light on the concept of value for money with nine practicable principles. The book will guide you to change your mindset about money management, develop your savings, invest, and get out of debt.
Hundreds of people have followed the steps listed in the book to grow their income. The book covers various topics, including index fund investing, creating multiple income streams, and understanding how your money choices affect your finances.
They argue that contrary to popular opinion, one doesn’t need to be “wealthy” to lead a happy life and that you should spend money on experiences that add value to your life.
“The world needs you to show up and follow your dreams.”
The Automatic Millionaire
In this book, David Bach highlights how spending money wisely and strategically can make one more financially stable. He advocates for automatic savings and investing and prioritizing things that would help you succeed.
The automatic millionaire offers a realistic system that anyone can implement to grow wealth irrespective of their income level. Bach suggests investing 10% of your income and applying a pay-yourself-first approach to savings.
“Remember, inspiration unused is merely entertainment. To get new results, you need to take new actions.”
I Will Teach You To Be Rich
This book offers a no-nonsense approach to personal finance and wealth building. In the book, Ramit Sethi shows you how you can transform and organize your personal finance in an expert way. The book is aimed at young adults age 25 to 35. It provides a six weeks actionable approach to financial freedom based on four pillars of personal finance, including saving, investing, budgeting, and banking.
It also emphasizes automating savings to have more to invest. It’s ideal for anyone having a hard time understanding their finances.
“The single most important factor in getting rich is getting started, not being the smartest person in the room.”
There’s no know it all when it comes to personal finance and attaining financial independence; however, the more you know, the more productive you will become in life.
Of course, reading these books will not automatically make you rich,as there is no such as one easy formula to get there. But you’ll get the mindset and you’ll find the information and inspiration needed to get started. So I can definitely say that reading the above-listed books will set you on the path to becoming financially free.