To launch any business, you need financing, and the first step toward this is to secure capital investment.
Then it even gets more challenging! Hiring experts, coordinating marketing activities, and developing the product require knowledge management in finance.
And the best way to do so is by reading, reading, and reading! It gives you a broader perspective and inspires you to grow.
However, there are so many finance books available today that the sheer number of them makes many people afraid of reading them.
Well, make no mistake, for there is a book for everyone; you just have to know where to look!
Personal finance encompasses a wide variety of topics, so there’s likely to be a book that suits your needs.
Your money management skillset can be improved with finance books. You can learn things like paying yourself first and creating a budget by working with a financial advisor.
There’s even more to come! They may help you become a better investor and increase your retirement funds.
The books listed below can contribute to your financial independence to some extent and help you overcome the most common financial pitfalls.
Get ready because this list has several books praised by the Wall Street Journal, including great names like Dave Ramsey and David Bach. Let’s go!
Best Finance Books for Beginners
1- The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
The first book on our list is Dave Ramsey’s “The Total Money Makeover.”
Dave Ramsey is widely known as a financial guru and author with a well-known radio show and other media exposure.
The fact that Ramsey has experienced both early success and bankruptcy is reason enough to read this book. However, this is not all there is to it!
Well, no one can deny that finance is a tricky subject. It’s full of new concepts and terms to discover, and if you don’t know what you’re doing, you can quickly get off on the wrong foot.
Books like The Total Money Makeover can help you get off the ground in a way that other sources just can’t.
In this New York Times bestseller, the author talks about how to avoid common pitfalls like rent-to-own, cash advances, and using credit in order to get out of debt and improve your financial situation.
It provides solid tips for setting up an emergency fund, saving for college and retirement, and following Dave Ramsey’s famed “Snowball Method” for debt repayment.
Rating on Amazon: 4.7 out of 5
2- Broke Millennial: Stop Scraping By and Get Your Financial Life Together by Erin Lowry
When it comes to personal finance, the earlier you start educating yourself, the better.
That’s why Broke Millennial by personal finance expert Erin Lowry is an excellent place to start.
This is not the kind of book you want to ignore. In Broke Millennial, Erin aims to help people who are starting in their careers and planning for the future.
An approachable tone and practical tips make this book an ideal starting point for learning about everything from investing to planning for retirement.
In many ways, Broke Millennial is the definitive money book for this generation, and it captures its financial zeitgeist so accurately. This book is a must-have for anyone who wants to get their finances in order.
Rating on Amazon: 4.6 out of 5
3- Personal Finance QuickStart Guide: The Simplified Beginner’s Guide to Eliminating Financial Stress, Building Wealth, and Achieving Financial Freedom by Morgen Rochard
If you asked me to recommend one of the top 10 books for financial literacy, it would be this book.
In this book, Rochard takes the lead as a financial expert yet tells everything in a very understandable manner for you to catch on.
The topics within vary; one minute, you’re getting financial advice, and the next minute you’re building your own personal financial planner.
Worry not, though ’cause even though the author provides you with enough knowledge to start your own financial planning list from scratch, she still includes assets for each reader, such as spreadsheets, planners, and workbooks.
Moreover, once you get the hang of the finance world described in this financial book, you’ll be able to take more initiative in your personal lives and reach your financial peace.
If you need a step-by-step guide that also serves as a personal handbook, you should give Personal Finance QuickStart Guide a chance.
Rating on Amazon: 4.6 out of 5
4- MONEY Master the Game: 7 Simple Steps to Financial Freedom by Tony Robbins
If you’re looking for book recommendations that will help you shape your financial life by giving you key ideas, let me raise you Money Master The Game.
When elaborating the key ideas, from stock market psychology to finance wisdom, Robbins isn’t exactly alone – which is the reason I love this book so much.
It gives visibility to several voices, including financial market names like Carl Icahn and Warren E. Buffett. While Carl Icahn gives out details regarding human nature that can move financial operations as a Wall Street broker, Warren Buffet is all about diving deeper into index funds for readers to start long-term investing.
On a short note, let me remind you that these names aren’t the ones that easily give out interviews; thus, make sure to have a good grasp of it.
Rating on Amazon: 4.6 out of 5
Best Personal Finance Books for College Students
5- Your Money or Your Life by Vicki Robin and Joe Dominguez
If you’re a college student interested in financial independence, then Your Money or Your Life is a must-read book.
This book encourages readers to take a step back and think about their ultimate goals and how much money they’ll need to get there.
Your Money or Your Life is considered the bible of the voluntary simplicity movement. It has been updated with a new Preface, Index, and Resources to help you put the program into action. In this simple nine-step program, you will learn how to:
- Develop a savings plan and get out of student debt
- Slow down the work-and-spend treadmill
- Spend your money according to your values
- Save the planet while saving money
The author stresses the importance of controlling and balancing money and life energy in this book. In addition, the book contends that people today possess too many things, but they still feel emotionally void, leading them to seek more stuff and money as a mechanism to fill that void.
Rating on Amazon: 4.5 out of 5
6- You Only Live Once: The Roadmap to Financial Wellness and a Purposeful Life by Jason Vitug
In his book, You Only Live Once, Jason Vitug explains how sound financial management can be the key to overall health and well-being.
The author lays out a roadmap for young people to achieve their short-term and long-term goals to live a life of financial security.
Many people think that more money leads them to live the life they’ve always wanted, but in reality, Vitug explains that it’s all different.
You Only Live Once is your indispensable guide to discovering your passions and clarifying your purpose. It will teach you how to manage your money with a purpose – so you can live your dream life.
Utilizing this personal finance book, you can maintain control over your finances by learning how to budget and prioritize your spending.
These tips are particularly important for college students when paying off student loans and establishing a debt-free future.
Rating on Amazon: 4.8 out of 5
7- Rich Dad Poor Dad: 20th Anniversary Edition: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
Having several best-sellers, Robert T. Kiyosaki has definitely mastered the language of both the financial market and corporate finance.
Where is this idea coming from?
His financial books actually help youth improve their relationship with money, which is proven as this book alone has been translated into 51 languages and sold in over 109 countries.
Apart from this personal finance book, you might know Kiyosaki from his joint book with Donald J. Trump, Why We Want You To Be Rich: Two Men – One Message, which explains what should be done when faced with a soon-to-be real economic crisis for the middle class.
Moving on, this book goes into detail on crucial matters for college students, such as student loan debt, credit card debt, and how to become professional investors and create a stable investment portfolio at an early age.
If you’re a college student that wants practical advice to become more than an average investor, you know which book to buy.
Rating on Amazon: 4.7 out of 5
8- Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich by Jason Zweig
College teaches you a lot, but so does this book.
I included this book as one of the best financial books for young adults since this kind of content would be suitable for laying a base for students who are looking for a clear understanding of the way that the brain works when it comes to money.
So, it’s not about immediately paying off student loan debt, but it’s about improving your relationship with your thought process so that you can take some shortcuts when it comes to that.
Moreover, getting background information regarding the aspects that connect your brain to your actions comes out better off since you’ll get a hang of the financial decision-making process to an extent that each step portrayed in this book will create a foundation for your own financial peace.
Deciding between reason and emotion will no longer be a problem, thanks to Zweig’s scientific research and experiments conducted in this field.
Rating on Amazon: 4.4 out of 5
Best Finance Books for Investment
9- The Bogleheads’ Guide to Investing by Mel Lindauer, Taylor Larimore, and Michael LeBoeuf
The Boglehead authors show how beating the market requires more than just good judgment and a contrarian mindset to invest.
This interesting book provides you with insights to help you become a more successful investor.
Despite what most people think, relying on Wall Street common sense can leave you worse off than before.
You’ll learn how to construct your investment strategy using Bogle-proven methods that have worked for thousands of investors and how to:
- Diversify your portfolio and adopt a healthy financial lifestyle
- Invest early, regularly, and know what you’re buying
- Reduce costs and taxes to preserve your buying power
- Put an end to Wall Street’s “good” advice that leads to investment failures
The Boglehead’s Guide to Investing provides investors with expert guidance, sound advice, and a bit of irreverent humor to navigate these turbulent times.
Rating on Amazon: 4.7 out of 5
10- The Simple Path to Wealth by J.L. Collins
If you’re looking for a book that specifically discusses investment and is written in a straightforward style, then The Simple Path to Wealth by J.L. Collins is one to consider.
Collins is the father figure in this book, guiding the way with a simple map, encouragement, and the tools for success.
His book was originally written as a series of letters advising his daughter, but it is also a compelling argument for investing in broad-based index funds.
Collins discusses his investment philosophy and why he is hesitant to follow traditional investing strategies.
In his book, he explains the simple approach he created for her daughter, and it is not only straightforward and easy to understand, but it is also quite powerful.
Rating on Amazon: 4.7 out of 5
11- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C. Bogle
This financial book by John Bogle is everything you’re looking for when it comes to learning several topics related to investment to become an individual investor on your own.
Whether it’s how to look up investment firms or understand if it’s a good investment opportunity to take, this classic guide shows you the way to reach financial peace.
The mutual fund pioneer Bogler does wonders when explaining each topic as he’s inspired by many big names while creating a solid image in readers’ minds. These names include Warren Buffett, Burton G. Malkiel, and Benjamin Graham.
To exceed market expectations, you’ll be learning the dos-and-donts in the middle of a financial crisis, the most effective investment strategies, and investment opportunities that you might see after growing a more financial mind.
Rating on Amazon: 4.7 out of 5
12- Market Wizards: Interviews with Top Traders by Jack D. Schwager
Market Wizards might be one of the best books for finance students since it’s full of great insight and actionable techniques.
This book is a great starting point as it contains several methods for novice investors so that they can gain financial wisdom to the point where they understand the proper mindset and correct discipline to show progress in this business.
Beware of the fact that this book contains multiple interviews – interviews from which you can derive meaning as the interviews are full of stories to tell, experiences to share, and methods to improve.
As a must-read, this book might become one of your favorite books if you’re in it to win it by taking note of the strategies of top-class traders.
Rating on Amazon: 4.7 out of 5
Best Finance Books for Good Money Habits
13- The Power of Habit: Why We Do What We Do in Life and Business by Charles Duhigg
Our habits are what drive us to our goals in health, relationships, business, and yes, even money. Creating good habits is crucial.
The Power of Habit, by award-winning journalist Charles Duhigg, explores how habits arise and how to change them based on scientific discoveries.
In his book, the author examines what habits are, how they’re formed, and the way we can leverage that knowledge to build habits that’ll benefit us in the long run.
Duhigg argues that understanding your habits can help you make better life decisions and achieve your goals faster.
Although it’s not exactly a money book, it will revolutionize your financial outlook if you take his advice to heart.
Rating on Amazon: 4.7 out of 5
14- The Automatic Millionaire by David Bach
Author David Bach’s “The Automatic Millionaire” begins with the compelling story of an average American couple whose combined income never exceeds $55,000 a year. Yet, they manage to own two homes debt-free, send two kids to college, and retire at 55 with more than $1 million in savings.
In this book, you will learn how to pay yourself first, a plan that is automatic, a plan that will protect your future and pay for your present.
With a focus on the tried and true principle of paying yourself first, the book will help you create an automatic income stream that will build into a fortune over time.
Using principles that have worked for so many of his clients, Bach shows you how to put your money on autopilot.
Reading this book, you’ll learn about ways to build wealth, debt elimination, and compound interest.
Rating on Amazon: 4.7 out of 5
15- Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H. Thaler and Cass R. Sunstein
Nudge is a classic, bestselling book that looked at how humans make decisions and the underlying psychology of our choices.
This book aims to examine the behavioral and emotional biases we have with money and look at the importance of making small changes to our lives.
Adopting a savings mindset can be as easy as a “nudge;” That’s the fundamental argument of this book by Richard H. Thaler and Cass R. Sunstein.
The authors explain that humans are not always rational in their decision-making and address how we can use that knowledge to influence our choices, including how we manage our money.
Reading this book helps you to use sensible “choice architecture” to nudge people toward the best decisions for themselves, their families, and society without restricting the freedom of choice.
16- The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko
In this book, you’ll find how generations of investors are handling money, or should I say the advice they get from their families.
It talks about how to create a base for the future financial peace that you seek to get while explaining the human nature behind it as it touches upon seven human traits the wealthy people have in common.
From high-income to spender, these traits define what’s your type and how you should build a future around it.
Moreover, the author interviewed several millionaires to understand the common mindset and what they did to keep their wealth (or did wrong and couldn’t).
Thus, if you’re in need of some crucial financial advice regarding matters like spending money, saving money, and understanding money.
Rating on Amazon: 4.7 out of 5
17- The Richest Man in Babylon by George S. Clason
This one might be your bedside book if you want to have an enjoyable history lesson along with a solid financial education.
At first, The Richest Man in Babylon might come off as a boring history book – trust me, that isn’t the case at all.
Combining two subjects in one, this book manages to serve as the number one under the top 10 best financial books for financial literacy as it takes it from the start with objectives and key results, though, it goes by the name of “seven cures for a lean purse”.
To go into more detail, this book involves multiple habits to cultivate in order to reach your financial goals while providing you with the background of ancient Babylon with great storytelling skills.
Giving you a chance to observe generations of investors so that you can follow in their footsteps, this one is totally a gem!
Rating on Amazon: 4.7 out of 5
Conclusion
To build personal finance knowledge, we need good books that cover a wide variety of topics while keeping the same spirit.
Therefore, reading books in various categories like investing basics, debt management, investing strategies, building habits, and others is beneficial.
They are different in their presentation of financial concepts but help build the same knowledge. So you might start with the first book of this selected reading list and then move on to another afterward.
Let us know if there are other books that you think should be included on this list.
Frequently Asked Questions
What is the number 1 personal finance book of all time?
We present to you the number one personal book of all time: The New York Times bestseller “The Automatic Millionaire” by David Bach. Having written 12 books on personal finance, the author is an expert in the field. In all, 11 of Bach’s books have been national bestsellers, including “The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich” which made the top of The New York Times bestseller list.
What books should I read to understand finance?
Starting with the beginner books on our list will help you understand the terms and the basics of finance. For instance, The Total Money Makeover or Broke Millennial are two books that can help you better comprehend the concept.
Do finance books really help?
Yes, definitely! Reading books on personal finance and investing can broaden your horizons and help you grow in your career and personal life. Still, reading isn’t enough; you have to put these tips into action. Developing skills like money management and habit formation can change your life for the better.
