As the common saying goes, knowledge is power and it is with knowledge that we can make the right decisions to better our lives. You can especially do the same with your finances, where making the right decisions with the right information and knowledge helps you from accruing further debt or other financial losses.
The most common way to gain knowledge is through books; and with the right book, you can learn how to get yourself out of debt, grow your savings and lead a more comfortable life. However, it’s difficult to know which books are best for the average Joe or Jane instead of those made for super investors or money gurus. To make things easier, we’ve done the research for you. So if you’re keen to gain more knowledge and other financial tips to help you with your money, here are 5 books that you can read.
The Total Money Makeover – Dave Ramsey
Dave Ramsey is a known personality on money and business and his book is all about using common sense when it comes to your finances: avoid using credit, pay cash as much as you can, stay away from debt and build an emergency fund.
Pros: Ramsey has a lot of good tips that, once followed, can change the way you look and handle money.
Cons: He harps against credit and debt a little too harshly which may put some people off. So proceed on this one with caution if you’re easily put off by or sensitive about criticism.
Rich Dad Poor Dad – Robert T. Kiyosaki
One of the most popular Personal Finance books of all time, Rich Dad Poor Dad captures the author’s experience learning from two fathers, his real father and the father of his best friend who is rich, and how it has shaped his thoughts on money.
Pros: Overall, the book has some really good tips on how to grow your money, and it is easy to understand.
Cons: His advice is too simple, telling you where to invest your money without showing how or the risks that are involved.
The Millionaire Next Door – Thomas J. Stanley & William D. Danko
While the first two books are written by well-known people in the finance world, this book was written based on years of research which profiles people who have already become millionaires. This gives you a better perspective on the kind of lifestyle you can lead to have more money in your savings.
Pros: It has seven common sense points that can help you keep your finances in order as well as grow your wealth. And with the insight of how rich people think and live.
Cons: There are a lot of statistics and information that may not be applicable to you or may confuse you.
Your Money or Your Life – Joe Dominguez and Vicki Robin
This book not only shows you how to gain control of your money, it will help you make your own life rather than just making a living. The book gives you anecdotes and examples and tells you how to get out of debt and develop savings, sort out your material priorities and live well for less, resolve inner conflicts between values and lifestyle and much more.
Pros: The tips help you correlate your lifestyle to your money, helping you to lead a better life with simple tips on how to take control of it.
Cons: You may not be able to relate to some of the steps offered as this book is American which means some tips may not apply.
Think and Grow Rich – Napoleon Hill
Napoleon Hill interviewed a series of millionaires and philanthropists back in the 1930s and until today, the tips and advice used here has changed the lives of many. While it does encourage the notion that “greed is good”, it agrees that it is only good if the wealth is shared. There are all sorts of books that talk about personal finance and how you can gain better control of it. So be sure to choose the book that rings true to you and has values that you can both follow and treasure. While it’s good to depend on the tips you can find online, books still hold a wealth of knowledge that you may be able to apply into your life better. Happy reading!