Top 9 Money Management Books That Will Change Your Life

Are you looking to expand your knowledge when it comes to money management? This blog post has a curated list of the top beginner-friendly money management books to get you started on your quest to learn more about money management.

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Top 9 Money Management Books That Will Change your Life

Are you looking to expand your knowledge when it comes to money management? Did you know that most of us are self-taught in money management? The majority of schools do not teach money management principles. 

Did you also know that many people believe that books are a great way to access information from some of the most brilliant minds you otherwise would not have been able to access?

Although schools seem a bit more interested in formalizing the teaching curriculum about money management. 

Unfortunately, at the time of this post, only 21 states currently require students to take a personal finance course before graduating. 

One of the main reasons why this blog exists is to give people alternatives on ways to learn about money management, personal finance 101, budgeting, saving money, investing money, making more through hustles, and higher-paying jobs. 

 

WHY ARE PERSONAL FINANCE BOOKS IMPORTANT

  • When starting a financial literacy journey, it is essential to keep it simple, accessible, and sustainable. 
  • There are many books in the market about personal finance. Some are great, some are good, some not so great.

This blog post has a curated list of the top beginner-friendly money management books to get you started on your quest to learn more about money management. 

Each book tends to have a target audience, but also consider that personal finance is unique to you and your situation, so take what serves you, leave what doesn’t, and never stop learning. 

This list has been customized to and bucketed for books that we have read, and we will separate them by investing, public money (budgeting, saving, etc.), and the last category would be inspiration/mindset around money. 

Although you are probably looking for books that can give you tangible ways to learn how you can grow your money, pay down debt, having an understanding of how the psychology of money plays a part in your life can be extremely helpful and beneficial. 

Money is much more than just money. And it is a ray of past experiences, lack thereof, traumas, and judgment. 
Breaking those down to a level where you actually understand the reason behind why you act the way you do or how you feel when you are thinking about money can be life-changing.

TOP THREE BEGINNER-FRIENDLY MONEY MANAGEMENT BOOKS

  1. ‘I will teach you to be rich’ by Ramit Sethi

 

Through reading this book, you will learn how to use credit cards wisely, how to choose the right bank accounts and investment accounts, and most importantly, it will help you plan out how to spend your money based on your needs. 

Essentially this book will provide you with the ultimate financial system that grows your money in an automated way. 

Overview of the topics outlined in this book: 

  • CREDIT CARDS
  • PAYING OFF DEBT
  • BEST BANKS
  • INVESTMENTS 

 

2. ‘Rich Dad Poor Dad’ by Robert Kiyosaki

This book is the number one seller in personal finance. Shall we say more? 

This book teaches valuable lessons that the rich use to become, stay, and teach other generations how to become rich and stay rich.

This book is all about you not needing to be a highly compensated individual working a 9-5 to be rich. What this book really does well is at teaching you the difference between a liability and an asset.

It talks about taxes and how understanding taxes can really help you become rich quicker. 

The rich do not work for money because money works for them. How to develop financial intelligence.

Every dollar you spend today does not work for you again, in perpetuity.

 

 3. ‘Why didn’t they teach me this in school, too?’ by Cary Siegel

This book touches on the actual things we should have been taught in school. Cary originally wrote this for his five kids. 

He noticed that there is a lot of money management lessons school should teach, so he broke them down into 8 digestible lessons. 

These are practical lessons that do not sound lectury, which is why it makes this book super easy to read. AND RELATABLE.

Siegel explains how your money decisions today will affect your life in the future. Often we make decisions at the moment, not realizing that the consequences are often detrimental to our future.

 

 

 


TOP THREE BEGINNER-FRIENDLY INVESTING BOOKS

  1. ‘Invested’ by Danielle Town

The thing about investing is that it can be complicated, well, at least some people that teach it make it complicated. 

Oftentimes when you ask people why they don’t invest their money, the majority says it is because they don’t know where to start or how the stock market works. 

In this book Danielle, a non-professional in the finance world, works together with her father, a professional investor to answer commonly asked questions about the stock market. 

In each of the chapters, Danielle examines the investment strategies she mastered as her know-how increased as she worked together with her dad to write the book. 

What makes this a successful read, is that Danielle since she does not have a formal background in finance, the ways and type of questions she asks her dad, makes it more digestible to the everyday person. 

Danielle, like many Americans, grew up avoiding investments because of all the emotional rollercoaster you often go on as an investor. Until her career as a lawyer started to feel like she was being robbed of her time. 

And as we all know, money can be liberating, freeing and it can open tons of doors and opportunities, and make room for things we actually want to do in life. 

This book also gives you the formula you need to examine a company’s financial statement, which is a very important part of the research you must do before investing in a company.

2. ‘The little book of common sense investing’ by Jack Bogle

Jack Bogle is the founder of Vanguard (one of the biggest and widely recognized investment/brokerage companies). 

This book is going to make you an expert in index funds. This book will give a simple yet effective look into what index funds are, how they work, and how you can make money investing in those. 

Bogel goes to explain why index funds are the most economical way of investing in companies, the why behind helps you understand why this method works.

“Performance comes and goes, costs go on forever” Essentially this is a direct quote from the books to let you know why index funds are better than active managed funds.

There is also a breakdown of the difference between local and domestic stock vs international stocks, this book is one of the simplest books about investing that will actually help you get started with investing. 

Don’t worry if you don’t understand any of these terms, there is a handy dandy resource on this website that breaks down all these terms, because remember, we are all about teaching you jargon-free financial terms you should have learned in school.

3. ‘The little book that still beats the market’ Joel Greenblatt

This is a magic formula to understanding investments. Joel Greenblatt is a fund manager that works at a firm that reported a 40% annual return in the early 80’s through 2006. 

This book is fun, super simple and broken down in a way that anybody can understand. 

He uses analogies that kids could grasp. He uses the analogy of a chewing gum business, which is run by an 11-year-old. 

In that same breath, that is the way he explains what a stock is, why it works and how to determine if a stock is successful or not.

The book simplifies investing by teaching the reader how to find the best stocks to invest in and you can do so through looking at two metrics, the P/E Ratio and return on capital. 

Understanding the P/E ratio and return on capital has successfully predicted the stock that could perform well in the market over time. Greenblatt calls these metrics the magic formula.


TOP THREE BEGINNER FRIENDLY MONEY MINDSET BOOKS

Money mindset is more important than people make it out tobe. Especially if you are in debt and can’t seem to take your debt pay off journey seriously. 

Or if you are living paycheck to paycheck and believe that is the life you will always be living in. 

Getting to understand the reason behind why you make the decision you make when it comes to money will help you finally build the foundation you always needed to start making progress in your financial freedom journey.  

 

  1. ‘You are a badass at making money’ by Jen Sincero

 

 

“Making money is like having sex. You’re supposed to know what you’re doing and be all great at it, but nobody teaches you anything about it, and you’re never supposed to talk about it because it’s inappropriate, dirty and … not so classy. Both money and sex can provide unthinkable pleasures, but we’re ashamed to admit that we want it, and we will do things/people, we’re not specifically into to get it.” – JEN SINCERO

This book is just deep into the mentality you must adopt if you want to receive money and become more financially stable.

 

 

 

Here are the key takeaways from the book:
  • Money is a great thing
  • Be aware of your thoughts around money
  • Be around people that want the same thing as you or respect your goals
  • Break big and complex problems into small and digestible pieces

 

2. ‘The psychology of money’ by Morgan Housel

 

This has to be one of favorites for the book choice in this category because it not only talks about your own psychology about money but it also takes into account other people around you. 

Why do people think about money the way they do?

This book teaches you why people fail to achieve financial success and why you want money. This book also includes a financial strategy, how to create one that you can confidently follow for times to come.

 

 

 

The main lessons are: 
  • Chance and luck plays a bigger role in our financial success then you give it credit for 
  • The difference between being rich and wealthy
  • Money buys you control over time 
  • Compounding and how it works 
  • How to prioritize saving money 
  • Be prepared for things to go wrong
  • Be flexible with your goals, changing

 

3. ‘The millionaire next door’ by Thomas Stanley and William Danko

This book explores the habits of many millionaires and how you can adopt the same to build wealth. 

It breaks down the meaning of wealth: your income is what you earn; your wealth is what you accumulate. 

Appearances can be deceiving. Earning a high income does not necessarily mean that you are saving. You are actually potentially still living paycheck to paycheck and not accumulating wealth. 

Some characteristics of wealth-building habits that millionaires adopt as described in the book:

  • They live beneath their means
  • They use time and money efficiently to build wealth 
  • They chose the right line of work
  • Prioritize financial independence over displaying social status 
  • Skilled at identifying investment opportunities

 

                                                                                           That would bring this blog to an end. 

Books can be a great way to build intelligence and become more literate on a topic you are passionate/interested in. You are truly an MVP for making this far in the post.

I hope you choose one, two, or all the books recommended on this list to make your financial dreams come true. 

Until the next post, I will see you back here at the same place, same time, and don’t forget to drop your questions and suggestions below by typing a comment or simply head over to the contact tab and shoot me a message directly into my inbox. 


DISCLAIMER: I AM NOT A FINANCIAL ADVISOR. INFORMATION FOUND ON THIS SITE IS AN OPINION BASED ON MY PERSONAL EXPERIENCE AND SHOULD ONLY SERVE AS EDUCATION AND NOT PRESCRIPTIVE ADVICE. PLEASE CONSULT A FINANCIAL ADVISOR

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