Top 10 Finance Education Books to Transform your Finances in 2018
Money and finance education books are a dime a dozen (pun intended).
Everyone has an opinion about your money. Including me!
But there are finance education books whose principles have stood the test of time and changed people’s fortunes.
The average millionaire reads an average of one non-fiction book per month. In fact, a study of 1200 wealthy people found that they have one pastime in common, reading!
The ultra-rich take it a notch higher:
- Buffett estimates that he spends 80% of his working day reading and thinking
- Bill gates reads about 50 books per year
- Mark Cuban reads for more than 3 hours every day
- Oprah Winfrey selects one of her favorite books each month for her book club to read and discuss
Reading isn’t so lame now is it?
Wealthy people don’t just read for entertainment, they read for education, self-improvement, and success. Reading not only makes you smarter, interesting, and attractive, it also improves your imagination and sharpens your analytical skills.
These are critical components of a successful and wealthy life.
It begs the question then, how many finance education books have you read so far? Here is a list of the top finance education books to get you started on your path towards changing your money mentality.
Because let’s face it, most people aren’t losing the money game because they don’t have money, rather, because they have limiting beliefs about it.
Best Finance Education Books
1. ‘Think and Grow Rich,’ by Napoleon Hill
Published in 1937 after more than 20 years of research into what sets millionaires apart, Think and Grow Rich remains as relevant today. Napoleon Hill summarizes the “secret” to wealth in 13 principles and points out what holds most people back from achieving true wealth.
A personal finance classic, this book will change your perception about wealth. You learn that getting rich is about mindset and your own psychology more than anything else. Napoleon sets out the steps you should take to create wealth through the power of your thoughts.
Napoleon sets out the steps you should take to create wealth through the power of your thoughts.
For finance education books, Think and Grow Rich is a classic.
2. ‘The Millionaire Next Door,’ by Thomas J. Stanley & William D. Danko
Think the rich live in McMansions and drive the latest imported luxury cars? Think again.
Your low-key neighbor with his old looking car and a modest house is probably the millionaire. Based on interviews with millionaires and high net worth individuals, The Millionaire Next Door by Thomas J. Stanley, PhD & William D Danko, PhD debunked the myth of the flashy millionaire.
Most of the people who appear wealthy are usually spending all they earn and carry huge debts.
The real millionaires, on the contrary, are ordinary people who live within their means and practice frugality.
3. ‘Rich Dad Poor Dad’ by Robert Kiyosaki
This is my personal favorite finance education book of all time.
Forget what you learned about money from school, and pick up this personal finance book to learn how the truly rich build their wealth.
Robert Kiyosaki tells the story of two dads in his personal finance classic – his “poor dad” and his friend’s “rich dad”.
Kiyosaki argues that it’s not earning lots of money that makes you rich, it’s what and how you manage your income.
For example, he says that the rich invest in assets while the poor and middle class pour their money into liabilities.
Of note is Kiyosaki’s definition of an asset – something that puts money into your pocket. Rich Dad Poor Dad will change how you think about money, and more important, how to handle it to build wealth.
4. ‘Your Money or Your Life,’ by Joseph R. Dominguez
This is not a book about amassing tons of money. Instead, Your Money or Your Life is about “finding the central values in one’s life and realigning your life and money to follow these values”. The real point of the book is to re-frame your relationship with money.
It leads you to delve into what matters in your life, and what makes the most sense for you.
Forget what other people are doing. Instead, focus on what works best for you to live life to the fullest on your own terms.
5. ‘The Richest Man in Babylon,’ by George S. Clason
Want to know the secret to getting rich? George S. Clason says there is no secret in this 1926 personal finance classic.
According to “The Richest Man in Babylon“, building wealth boils down to a few simple principles that anyone can follow.
This includes paying yourself first, living below your means, educating yourself and intelligently putting your money to work.
All this is woven into entertaining parables based in the ancient city of Babylon. It’s a short finance education book that’ll revolutionize your perception about money.
6. ‘Rich Habits: The Daily Success Habits of Wealthy Individuals,’ by Thomas Corley
True wealth doesn’t happen overnight, instead, it’s the result of the right habits practiced over time. To quote Will Durant, “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
In Rich Habits, Tom Corley delves into 10 principles he uncovered through years of research, that set the rich apart from the rest.
Did you know for example that the wealthy watch very little TV compared to the poor? Or that they take great care of their health by eating healthy and exercising?
By the end of the book, you’ll learn that it’s the little, seemingly mundane things that set the wealthy apart.
7. ‘You’re So Money: Live Rich Even When You’re Not,’ by Farnoosh Torabi
“You can have it all,” says Farnoosh Torabi in this entertaining read, ‘You’re so Money‘. The reason most of us don’t is because we have our priorities wrong.
According to her, “Having it all doesn’t mean being super rich, it means knowing what you want and what you absolutely can’t live without, and then going for it.”
You don’t have to live like a hermit, set your priorities right and build wealth without sacrificing the things that make your life fun.
8. ‘The Total Money Makeover,’ by Dave Ramsey
Renowned financial expert and TV personality Dave Ramsey dives into the nitty-gritty of getting your finances in order in this finance education book, The Total Money Makeover.
It’s a real, down to earth and straightforward guide into how to think about your finances and how to get your financial house in order.
Dave is a big proponent of staying away from debt and this book delves into that. According to him, the plan to get your finances in order is simple and achievable:
- Save $1000 as an emergency fund,
- Pay off all your debts,
- Build up a 3 – 6 emergency fund and
- Save for stuff you want to buy without incurring debt.
9. ‘The Intelligent Investor,’ by Benjamin Graham
Praised by Warren Buffett as one of the finance education books that changed his investing outlook, The Intelligent Investor takes out guesswork from investing.
It differentiates investing and speculating and offers the proper framework for the latter. Ben Graham posits that you don’t need a high IQ or inside information to succeed as an investor, what you need is emotional discipline to follow through with the simple investing framework he recommends.
10. ‘Ready, Fire, Aim: Zero to $100 Million in No Time Flat,’ by Michael Masterson
In Ready, Fire, Aim, self-made millionaire and bestselling author Masterson imparts the knowledge you need in your entrepreneurial journey.
Whether building a business from scratch or expanding an existing one, this finance education book will teach you the skills you need to succeed at each of the four stages of entrepreneurial growth and thrive in an ever-changing business environment.
This book is important because it cautions against waiting. Most people wait until everything is perfect to jump into a new job, investment, side income project, or business idea. Don’t wait!
Do some planning, think about it, and then LAUNCH! Adjust as you go, and know that at least you’ve taken action. Which is more than most people do.
So take action! Pick any of the above finance education books, read it, and apply it to your life.
Editor’s note: This post was originally published in April 2017 and has been updated for accuracy and comprehensiveness.