Today I want to share five best personal finance books that I believe everyone should read as a right of passage into adulthood.
To look after your money and feel comfortable with what you have, how you spend it, how you save it, and the goals you want to achieve in your life is a sign of maturity.
People mature at different paces in their lives. I began learning about how to look after my money when I became a university student. My financial education didn’t start because I knew it was time to learn, but because it was necessary. I did not need to think about money seriously before then. Hence I didn’t bother learning.
Financial skills should be taught to children at school. In the UK, at least, that doesn’t currently happen, which is a shame. The UK government seems to be more concerned about Maths and English attainment rather than teaching children what they really need to know to get them through life.
A great way to start or broaden your financial education is to learn from people who know. Today I take you through the five best personal finance books that I think everyone should read.
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You Need a Budget by Jesse Mecham
I have been following the ‘You Need A Budget’ (YNAB) methodology for quite a while now. For me, YNAB has been my financial saviour. It has allowed me to save for the important things, and to enjoy my income by making it work for me.
Jesse gives us four rules to live by:
- Rule 1: Give every dollar a job
- Rule 2: Embrace your true expenses
- Rule 3. Roll with the punches
- Rule 4. Age your money
Jesse’s rules are carefully designed to work with you, not against you.
In rule three, roll with the punches, Jesse recognises that budgets should not be set in stone.
For example, if you find you just can’t get your grocery bill down to the level you had hoped, then it’s absolutely ok to make a change to your groceries budget category to reflect that.
In Rule 4, age your money, Jesse encourages us to think about long-term goals and how our budget can help us get there and beyond.
Financial Freedom: A Proven Path to All the Money You Will Ever Need by Grant Sabatier
At the age of 24, Grant Sabatier looked at his bank balance with a sum total of $2.24 and vowed to save $1 million within five years and to retire as quickly as possible.
Grant spent the next few years doing everything in his power to make the dream happen. Luckily for us, we can do it too because he lays out the exact framework he used to get himself to financial independence in this book.
Grant makes a bold statement:
If you follow the plan and stick with it, I promise you will end up with more money than you ever thought possible.Grant Sabatier
The Next Millionaire Next Door by Thomas J. Stanley & Sarah Stanley Fallaw
‘The Next Millionaire Next Door’ is a follow-up book to the 1996 classic by Thomas J. Stanley ‘The Millionaire Next Door’. Thomas and his daughter Sarah take another look to examine what, if any, changes could be seen in the twenty years after the original publication.
This book is a fascinating look at how specific decisions, behaviours and characteristics can achieve wealth rather than through inheritance or ethnicity.
As long as individuals live in a society where they are free, everyone has the potential to become wealthy if they practice the right behaviours and goals.
The next-door millionaire doesn’t necessarily flaunt their wealth with a flashy car and a palatial house. Their lack of bravado might well be the secret to how they arrived at millionaire status. Find out just how they did it in this intriguing book.
Money, a Love Story: Untangle Your Financial Woes And Create The Life You Really Want – Kate Northrup
Kate Northrup teaches you how to love money so that you can love your life. She believes that a woman’s physical health is intrinsically influenced by money, sex and power. For example, a woman’s pelvic health is generally good when she has control over her finances.
Kate herself recovered from a $20,000 debt to achieve financial freedom by the age of 28. She uses her financial journey along with stories from her clients to change your beliefs about money, showing you how to get out of debt, create a budget, love yourself, and more.
Thrifty Ways For Modern Days: Martin Lewis
Martin Lewis’s book provides practical advice for being more frugal in your life. Although Martin Lewis has his name on the book, many of the tips come from the readers of his money-saving expert website.
This book is a fun read. I love the old-style way of living. Use this book for the nuggets of wisdom it contains with abundance rather than a strategic guide to money matters.
It is packed full of old-style advice for saving money that your grandparents would have lived by. Think, ‘keeping the home fires burning’ type of advice from the oldies.
We have become such a consumerist, throwaway society. This book will help you come back down to earth, finding uses for everything you would ordinarily throw away without a thought.