Top Picks: Best Books for Personal Finance You Must-Read

We live in a world where time and money are the most important resources. These two influence the whole functioning of mankind. They define the term success for a company or an individual. However, this doesn’t happen overnight. It takes years of hard work, effort, and wise decisions to overcome the challenges and emerge as the leading entity. 

It is difficult in the early stages of a business to find capital and fall into the zone of profits. Regardless of their position in the market, everyone must know how to manage their finance. 

In this article, we will discuss the fields of finance, personal finance, and the best books for personal finance:

What is Finance?

Finance is all about managing the capital or earnings. It involves managing the investment, budget, and savings of a company or an individual. It also includes raising funds and using credit and debit cards to generate capital for current and future investments.

There three main segments in finance, and they are: 

The Importance of Personal Finance 

A systematic approach ensures the hassle-free functioning of an entity. Similarly, personal finance provides a systematic procedure to achieve the financial goals of an individual or family. Be it short-term or long-term goals, future planning, education, and even retirement, personal finance helps an individual to stay financially disciplined. 

Not to deviate, it is important to understand the whole process of personal finance. To start with, there are some best books for personal finance that you should look into to gain a deeper understanding of the subject.

Three Must-Read Best Books for Personal Finance:

1. The Wealthy Barber by David Chilton

Often considered to be one of the best books for personal finance, The Wealthy Barber gives insights into personal financial planning. It has a unique approach to addressing the importance of savings and investing wisely. To make the readers hooked on the main theme, writer David Chilton used a compelling narrative style and storytelling structure and made it an engaging book for the audience. 

The story unfolds with the introduction of three characters, Diane, Cathay, and Tom, who are struggling with their finances. The character Roy, a local barber, unfolds when the three adults seek his advice on financial planning. Even though earning a base-level income, Roy claims that he is wealthy and agrees to assist them with financial planning. The story unfolds as a series of lessons focusing on key points in finance.

Key points it emphasizes: 

• The Importance of Financial Planning
• The Rule of Compound Interest
• Investing in the Stock Market and Mutual Funds
• Retirement Savings

2. The Total Money Makeover by Dave Ramsey 

The Total Money Makeover is among the most popular and best books for personal finance. It was published in 2003 and has since sold over 5 million copies. 

It is challenging to devise proper and effective financial strategies and individuals often fall into the realm of financial insecurity. No matter how good the income is, financial insecurity creeps in over the period. This book by Dave Ramsey will act as a guide that helps its readers overcome the financial burden through debt elimination, savings, and investments. 

Key points it emphasizes:

• Investing in mutual funds for retirement 
• Saving for college early 
• Paying off the mortgage early 
• Emergency starter fund 
• Snowball method to tackle debt

3. Rich Dad, Poor Dad by Robert T. Kiyosaki

This book was published during the late 1990s. Regarded as one of the best books for personal finance, it was an instant critical and commercial hit. It has sold over 32 million copies since its release. 

Unlike a storytelling format, the book starts with the real-life experience of the author, Robert T. Kiyosaki. The story is set in the 1950s when Robert and his friend Mike imagine becoming rich. However, the question of how to accomplish the dream and the process is discussed in the book. It showcases how the protagonist’s two fathers- his real father, his poor dad, and his best friend’s father, his rich dad, have influenced his thought process and perception of money and investment. 

Key points it emphasizes: 

• Rich people don’t work for money 
• The importance of financial education
• Management of cash flow 
• Taking financial risks 
• Focussing on assets 

Well, these are the top three best books for personal finance. It is implied that financial education is important, but before that, people must have an understanding of the history of finance and the major financial crisis that changed the world.  

Here are some of the books on major financial events:

4. The Big Short: Inside The Doomsday Machine by Michael Lewis 

5. The Intelligent Investor by Benjamin Graham

6. Too Big To Fail by Andrew Ross Sorkin

7. Moneyball by Michael Lewis 

8. A Random Walk Down Wall Street: Including a Life-Cycle Guide to Personal Investing by Burton Malkiel

9. The Psychology of Investing by John Nofsinger

10. The End of Wall Street. by Roger Lowenstein

Conclusion: 

Concluding with a quote from The Big Short by Michael Lewis that goes like this- “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so”. 

It’s not like we are affected by the things we are unaware of, it is because of our misconceptions that we end up landing in difficult scenarios. Finance is a vast subject to indulge in, and every individual must have proper knowledge of financial planning to make a better future. It is confusing to start, but to make it easier, look up some of the best books for personal finance that will give you an immense understanding of the subject and improve your financial decisions.