One of the best ways to improve your financial situation is to increase your financial literacy, and the best way to do that is to read a personal finance book.
Finance books will teach you a number of things including:
- how to break free from living paycheck to paycheck
- techniques to pay off your credit card debt
- ways to deal with your student loans
- strategies to increase your net worth
- and more!
Reading books about money management and investing will help you improve your financial future and set yourself on the path to financial freedom.
Below are my top 5 finance books for beginners to read.
While I don’t agree with every author’s position on different strategies or ascribe to all their philosophies, reading these popular finance books will give you the foundation you need to take charge of your financial life.
Ready for the best books for learning about money? Keep reading!
Stress less & save more!
This FREE budget guide will help you create a budget that works for you!
Why Should I Read Books About Personal Finance?
While personal finance can be a dry subject, there’s really no better way to improve your relationship with money than by reading books about finance.
By digging into the world of personal finance, you’ll give yourself the basic knowledge necessary to start managing your money in a more controlled and deliberate way.
If you’re at all interested in leaving money stress behind and taking control of your finances, add the books below to your reading list this year.
Aren’t They All the Same?
While many finance books cover the same material, each author has their own philosophy and approach to the topic.
Some, like Dave Ramsey and Ramit Sethi, offer more practical advice with hands-on and step-by-step approaches to their philosophies, while others aim to be more inspirational in their message.
It’s a good idea to read as many personal finance experts as you can and expose yourself to a variety of money management strategies so you can determine what works best for you and your financial goals.
The Best Finance Books for Beginners
Each of these books has had an impact on my financial success, from resetting my attitude about debt and spending to understanding what building wealth really entails.
The Richest Man in Babylon by George S. Clason
The Richest Man in Babylon is my all-time favorite personal finance book.
Instead of taking a purely instructional approach, as many books do, The Richest Man in Babylon uses parables to demonstrate financial concepts like frugality, financial planning, and building your net worth.
If you’ve ever heard the phrase “pay yourself first” but don’t really have a clear grasp of what exactly it means, read this book first.
Also, this book is a super
Your Money or Your Life by Vicki Robin and Joe Dominguez
Your Money or Your Life offers a comprehensive guide to taking control of your money by changing your relationship with it.
You’ll learn how to develop more mindful money habits to help you get out of debt and save more money.
Probably the biggest takeaway for me from this book was the concept of figuring out how much time you have to give up by working in order to buy the things you want.
For example, if you make $20 an hour and your traditional Friday pizza night costs you $40, you’re basically working 2 hours of your life to pay for that pizza.
Understanding the trade-off between how much work is required to afford different things had a huge impact on my financial decisions.
If you know it takes you 3 hours of work to pay for that new video game, would you still buy it?
The Millionaire Next Door by Thomas J. Stanley
When you picture a millionaire, what image comes to mind?
For most of us, it’s probably a celebrity or professional athlete flaunting their wealth with extravagant lifestyles.
Surprisingly, those people are actually a minority among America’s wealthy.
The Millionaire Next Door is a fascinating look at just who makes up the bulk of millionaires in the United States and reveals the 7 common traits they all share.
This book is great for reassessing your assumptions and resetting your expectations.
I Will Teach You to Be Rich by Ramit Sethi
If you’re looking for a straight-up how-to guide on the basics of money management, look no further than I Will Teach You to Be Rich.
With everything from scripts to negotiate with lenders to guidance on what bank account to use, this book is filled with practical tips and advice on how to both save and make more money.
Where this book differs from others is in its unapologetic approach to spending according to your priorities.
There’s no shame in buying that daily latte if it makes you happy. But that’s conditioned on it being a conscious choice.
You’ll determine what constitutes your “rich life” and learn how to set up a “Conscious Spending Plan” so you can spend money on the things that make you happy by ruthlessly cutting out the things that don’t.
This book is filled with actionable advice, helpful money lessons, and
Total Money Makeover by Dave Ramsey
Dave Ramsey is an icon in the personal finance space and is famous for his 7 Baby Steps.
Total Money Makeover walks you through those seven steps, offering a no-nonsense approach to slashing your spending, getting out of debt, and building your wealth.
My journey to financial freedom began with this book, so I have a bit of a soft spot for it, even though I don’t agree with or adhere to all of Ramsey’s teachings.
That said, if you’re struggling with credit card debt, this is absolutely the book to read for a step-by-step guide to getting your money issues sorted.
Investing Books for Beginners
Once you feel confident about your day-to-day money management, you may want to look into investing.
Becoming an intelligent investor means understanding at least the basics of the market and how best to participate in it (whether we’re talking about the stock market or the real estate market).
The Simple Path to Wealth by J.L. Collins
My absolute favorite book for getting started with stock market investing is The Simple Path to Wealth.
Investing in the market can be nerve-wracking for the beginning investor, but this is the perfect investment book to ease you into the process.
The book started as a series of letters from the author to his daughter to help her with her financial planning.
But upon discovering her lack of interest in personal finance, it became the ultimate guide for casual investors who want to grow their net worth without having to spend all their time watching Wall Street.
If you’re at all nervous about investing in the stock market, Collins will put your mind at ease with his
After reading this book, you’ll feel more confident in implementing your own investment plan. It’s my #1 investment book for beginners.
Set for Life by Scott Trench
Real estate investing may not be the perfect fit for everyone, but if you’re looking for ways to diversify both your income and your savings, it’s definitely something to consider.
Set for Life isn’t a comprehensive guide to real estate investing, but it will give you a good overview in addition to providing a general framework for planning your financial future.
This book isn’t a typical investing book. It targets young professionals and advises them on how to set up passive income streams and gives them the confidence to start building their wealth early so they have more freedom earlier in life.
If you’re looking to increase your financial literacy, these 5 financial education books for beginners will give you the foundation you need.
From adjusting your money mindset and your expectations to practical tips for taking action, these self-help financial books will help you take control of your finances and start you down the path to financial independence.
Want to work together?
I would love to help you gain clarity and confidence with your money! If you’re ready to stress less, save more, and enjoy your money, click below to learn more about financial coaching.