Best Personal Finance Books
The best personal finance books are split along three categories depending on what they focus most:
- Books to save money
- Educating on a specific topic (ie.: investment strategies)
- Books to make money
Most personal finance books fall mostly on the first category with a smattering of the third category (making money).
The best personal finance books on making money are not much about building businesses though. They are mostly about investing your savings in the stock market and leveraging compound interest to get rich over decades.
That’s for a quick overview of the personal finance literature, now let’s start our best of list:
7. The Total Money Makeover
I picked the Total Money Makeover as the best book focused on saving money. Ramsey wants to move you from a spender mindset to a saver mindset.
This is really helpful for people who overspend and tend to have issues with debt and credit card over-usage.
Dave Ramsey doesn’t mince words and he can give you a much needed wake up call.
Quote: “We buy things we don’t need with money we don’t have to impress people we don’t like.”
6. The Millionaire Next Door
If you’re looking to make money, what about some data?
The Millionaire Next Door is one of the best personal finances books -if not the best- because it’s based on actual numbers. The authors surveyed real millionaires and find out how they live and how they think.
And if you were expecting flashy watches and extravagant holidays, that ain’t it…
Quote: “I am not impressed with what people own. I’m impressed with what they achieve (..) Strive to be the best in your field, don’t chase money. If you are the best in your field, money will find you”
5. The Book of Common Sense Investing
The Little Book of Common Sense Investing focuses on investing. The message is simple but it’s all you need really: cut the middle men and replicate the market returns with ETFs.
Bogle says that’s the safest, most lucrative and even easiest and most comfortable way to grow your investments -and if it’s worth anything, I agree :)-.
Quote: Gunning for average is your best shot at finishing above average.
4. Rich Dad Poor Dad
Robert Kiyosaki has received his fare share of critics over the years.
Rich Dad Poor Dad can seem indeed rather unscrupulous when it says that the rich pay little taxes and can get their holiday reimbursed by failing it as a business expense.
However, that doesn’t make it any less true.
And that’s why for me this is one of the best money books of all.
If that weren’t enough, Kiyosaki’s take on asset & liabilities is as simple as it is eye opening.
Quote: The lack of money is the root of all evil.
3. Money Master the Game
Money Master The Game shows a path towards financial freedom with a mix of prudent saving and smart investment.
Robbins teaches you how the mutual fund industry is robbing you, why you should avoid brokers and why the 401(K) is not a good investment vehicle. All in simple terms everyone can understand. Powerful stuff.
And if that weren’t enough, he caps it all off with a self-help sounding chapter that puts money in perspective. Money is only a tool, he says, and by itself won’t make you happy. How not to agree with that?
Quote: we’re drowning in information, but we’re starving for wisdom
2. The Millionaire Fastlane
by Mj DeMarco
Summary | Audiobook | Kindle
DeMarco basically rips apart all the personal finance books focused on saving money and investing with the compound interest. Awesome! We love a rebel shouting the truth around here.
Here’s what I learned:
1. Saving & Investing is for suckers: employees, duped by the compound interest myth, trade invaluable time today for distant (and uncertain) riches. Not worth it.
2. The paradox of practice: if authors selling get rich products got rich not with their methods but by selling their methods to you, are they credible?
Great question. And a truly awesome read.
Quote: Dump the damn job. The job sucks
1. The 4 Hour Workweek
The 4 Hour Workweek is a crossover between a personal finance book, a self-help book and a philosophy lifestyle book.
It’s the most business-like book as well, and it’s awesome.
With a vision of freedom and financial independence, and with a blueprint to get there, Tim Ferris doesn’t fill you up with the hot air of empty motivation. He paints the dream for you. And then gives you the courage and the tools to go make it a reality.
It has aged a bit when it comes to the actual tools, but the mindset are what matter the most and those are eternal.
Honestly, there are so many awesome quotes from this personal finance book that I’m stumped as to which one to pick.
Quote: They don’t have riches. The riches have them
This best personal finance books list covers a very disparate range of topics. It goes from saving to investing to lifestyle.
But you can’t go wrong with any of them: they’re the best books when it comes to money.
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And if you want a quick overview, check out my wealth and money literature overview, with lessons learned from these same books (and tens more books like these).