When it comes to managing personal finance, you can never have too much information. No matter your age, or in what stage of life you are, there are resources available to help you better manage your money. Below, I have compiled a list of books that everyone keeping a close watch on their personal finances should read.
This book is perfect for young people that are just beginning to get a handle on their own money. It chronicles 20 years of research on the habits of wealthy people, and has 7 key principles that they all follow. The principles are common sense, and good habits to begin early.
In this book, acclaimed economist Daniel Kahneman focuses on the two ways we make financial decisions - quickly and impulsively, and slowly and logically. While this is a great read for all ages, it is especially important for those beginning to build a budget because it explores the psychological mechanisms behind financial decisions. Understanding the reasons behind decisions will allow young people to make better financial choices.
In this book, financial planner Carl Richards goes after everyone of any age who makes mistakes with money based on bad decisions. He hones in on the silly ways we spend our money and why our natural instinct is to spend on things we do not truly need. Richards then explains the rationale behind these decisions, and advises readers on how to change our spending habits.
This book is the perfect illustration of how more frugal living can lead to a heightened quality of life. While many people today are stuck in a loop of making more money to be able to afford more things, they are not taking into account how much their quality of life actually changes. At a certain point of financial independence, it stops going up.
Anyone who is looking to do an overhaul of their personal finance management must read this book. With all of the ‘how to be a millionaire’ advice out there, it is nice to read a book that focuses on the baseline - becoming financially stable. Ramsey focuses on the behaviors that need to change, and the knowledge that needs to be spread, in order for a person’s finances to become stable. He also incorporates success stories and financial planning worksheets into this book for an added bonus.
For more personal finance reading recommendations, read about the top 10 personal finance books of all time and personal finance books to read before you turn 30.
