6 Life-Changing Personal Finance Book (Must Read This Year)
I will share six all-time favorite personal finance books that have significantly impacted my life over the last few years and completely changed my mindset regarding money and time. I’ll share a key takeaway from each of these, so you have a little preview of what you’re getting yourself.
1. I WILL TEACH YOU
The whole premise of this book is that it’s not about the money you make. It’s about the money you keep and what you do with it that will make a difference. You could be earning 70-80 grand a year. Still, suppose you don’t know how to manage your money. In that case, you will just be living paycheck to paycheck. one of the things I find most frustrating when I hear people from Finance backgrounds speak with people from non-finance backgrounds is their ability to use simple words when explaining something.
Sethi gets this bang on. He uses very understandable terms for the everyday Layman from all walks of life. The device is pretty unconventional. He says to buy all the lattes you want, uses credit cards to your advantage, and doesn’t think about the pennies but focuses on the oversized ticket items. The chapters have obvious actions on where to open up your bank accounts, how to get out of debt, and how to bucket your money between fixed cost, savings between investing, and guilt-free.
2. FOUR-HOUR WORKWEEK
If you are interested in entrepreneurship or business in the slightest sense, you have to read this book. Since I’ve got the Bookreader, I’ve formed a prominent picture of what I’m aiming for and how I will get there. It’s the kind of book I wish I had read ten years ago.
I would have done many things. Differently, the book has inspired me to think out of the box and question everything I know about productivity, time, and money; most of us follow the same routine where we go to school, graduate, get an excellent job, work super hard, and make loads of money and then eventually retire but this book questions the whole system. And why should we work until we’re 65-70, when we can’t even enjoy that money, will have the ability to enjoy that money as much but instead take those 20-30 years after retirement and spread them throughout life.
Instead, he calls us into retirement. He also alludes to this concept of the new Rich, when you have total control and where you work. He explains the new Rich generally has automated streams of passive income that allow them to Work as much as they want or as little as they want from anywhere they want to work. This book includes practical steps for creating passive income streams that allow you to live the new Rich lifestyle. He also gives tips to office employees on how they can live the new Rich.
3. RICH DAD POOR DAD
I know you’ve probably heard of this one repeatedly, but it is the number one top-selling personal finance Book for a reason. I’ve put this one in because it was a Tipping Point for me, from having an employee mindset and thinking about pure income to having a business mindset and thinking about generating and Building Wealth. The storyline is that there are two dads. Robert has a rich dad and a Poor Dad, and they have very different mindsets in the book.
Robert explored these two dads’ perspectives when it came to money. The dad, who had impeccable grades and qualifications and a high-paying job but was living paycheck to paycheck, was poor. The rich dad came from a completely different background. He had a completely different mindset regarding money. He spoke about it, how he treated it, how he used it, and how he made more money.
In this book, you take on the Journey of these two individuals and their mindsets when. It comes to finances and wealth building, and by the end of the book, it’s clear what makes one of them rich, and the other poor school doesn’t teach us the things I read.
4. CASH FLOW QUADRANT
It is like a sequel to Rich Dad’s, but it’s a bit more sophisticated. In this book, Robert goes through the essential steps that he and his wife took to go from being homeless to Building Wealth and retiring young in this book, Robert draws. The four sections or the quadrants of different in where we can earn money.
He categorizes that into four ways employees, self-employed businesses, and investors. Most of us are conditioned to become employees or self-employed, which is how the system has been created. We don’t have lessons on business or finance, not at school.
At least I didn’t, and no one learns how to become an entrepreneur or how to invest their money. Robert says that true wealth comes from Business and the eye segment because of the freedom it gives you, and it’s all about building a passive income. I’m trying more to explore the other quadrants.
5. THINK AND GROW RICH
There are a lot of controversies around this book, and that’s a bit fluffy, a bit Airy fairy, and kind of like the secret The Law of Attraction. Still, I am a huge believer in what the mind can believe if the mind can’t achieve with the right actions, of course, to back that. I feel like the first step in getting anywhere is to have this kind of outrageous level of self-belief that you can do anything; over 20 years, the author Napoleon Hill interviewed a bunch of people that had built huge fortunes from scratch, and he found everyday things amongst all of them.
He outlines in this book the blueprint for how anyone can become rich. This book makes you realize that making money doesn’t take money.
It takes the right mindset, and he says getting rich requires three keys.
- Desire
- A plan
- An unwavering focus
and these three things will. Unleash the opportunities you need to make money people think that it’s all the latest things and the latest gadgets are the most revolutionary ideas you have to do, but it comes down to these three. Timeless principles stand the test of time.
It might be a bit fluffy for some people, but money and wealth are about the mindset and less, in my opinion, about knowing complicated Financial things. The financial actions you need to do in this book rewire your brain and make you think ultimately differently about finances in a way that makes making money and managing your money so interesting.
5. Lean In
Lena by Sheryl Sandberg, a lot of what we see and hear about today owning a business is about being an entrepreneur, but many of us work day jobs. So we need to know how to make the most out of our situation and ensure we are getting the pay we deserve and the money we deserve for the work we’re putting in. This book provides a lot of advice on how to climb up that corporate ladder. It encourages women to take risks, be more ambitious in their professional goals, gain confidence to demand more, and generally gun for those leadership positions.
Still, this book is for women and men who want to support their Partners in achieving their goals and understanding what they must do.
