Best Books on Personal Finance
We all face a financial crisis at some point of time. We cannot predict the timing of the financial crisis in our life, but with proper planning, one can better prepare to lessen the impact of the crisis. Knowledge of personal finance is quite important to avoid any crisis. These days, personal finance is one of the most important skills. People use a different medium to learn about finance planning such as the internet, blogs, articles or seek advice from a financial advisor. But the best medium is still books. Books provide you the base to broaden your knowledge and what are smarter ways to increase your personal wealth. Let’s look at some of the best books on personal finance:
- Rich Dad, Poor Dad :
Any guy who has no idea about personal finance and why it’s important in your life. Then, this book is an eye–opener for you. It provides a new perspective to money, how the traditional method of defining an asset as something with value is wrong until it generates Cash flow. The most important lesson from the book is “Rich Guys don’t work for money but for rich the money works “
- The Richest Man in Babylon :
The book is a classic work of fiction. It provides the basic tenets of money management. The fictional character “ Arkad “ (the richest man in the story) shares certain principal to become financially sound, pay yourself first, control your expenditure, multiply your income or wealth, protect your principal from loss, ensure a future income as well as diversified your income sources. The advice is simple, but it will make your approach more disciplined.
- The Science of getting rich :
The book provides a glimpse of getting rich or financially sound is not accumulating money, but instead creating values. The writer spent a considerable amount of time in research to find out what separates a rich or financially sound person from a poor person. Rather than saving money, rich adds value to their own lives and theirs. Money act just as a medium of exchange of those values. Higher the value, the more money you will get back in return. Creation not competition is the hidden key of wealth generation. The core of the book describes how one adds value to other lives and becomes wealthy too.
- Psych yourself Rich :
Psych yourself rich is an excellent presentation of the relationship between you and the money. Most of our decision is based upon emotions. But in the case of money, it’s not the right to make decisions based upon the emotions. This book will teach you the concept of behavioural finance and how one recognizes the weakness in financial decision making and overcome it.
- Why they didn’t teach me this in school
In this book, the writer has shared its experience that what the school system has not taught you about money. He laid down 99 principles about money which you never learn in school. This is one of the best books on personal finance management. He encapsulated those into eight broad lessons. Those lessons will be effective in changing your thinking about your personal wealth. It’s a good book for young people, especially those who are in the mid 20’s.
In personal finance, failing to plan is planning to fail. These books will act as a guide for building your personal finance. A proper idea about finance as well as planning will help you in building good habits of how to manage and create wealth.
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