5 Top Personal Finance Books

Posted on 1/19/2023, 9:27:07 AM

Did you know that the U.S. consumer debt reached $14.3 trillion? From mortgages and credit card debt to student and auto loans, Americans are officially facing a debt crisis. 

It's quite easy to shrug your shoulders and assume that it's about people that are dealing with six-figure debts. However, when was the last time you took a thorough look at your bank account?

The truth of the matter is, you're not alone at being bad at handling money. You might even believe that it's all about earning more money, and has nothing to do with managing your personal finances correctly and keeping a budget.

Nope, not even remotely. But, no worries, you're in good company. Keep on reading to learn all about our top five personal finance books. 

1. The King of Personal Finance Books: "Why Didn’t They Teach Me This in School?"

Sometimes, we need to revisit the basics in order to create healthy financial foundations.

Cary Siegel's "Why Didn’t They Teach Me This in School: 99 Personal Money Management Principles to Live By" does exactly what it sounds like. 

This book covers the basics of handling money. It'll bring you up to speed, regardless of your physical age. The author had the idea for his book when he discovered how financially illiterate his own kids were about handling money. 

Now, we know that 99 might sound a bit too much. However, the book is actually divided up into eight main lessons. It's around 200 pages, so it's not the humongous tome that you'd expect. 

You'll find the book an easy read, with straight-to-the-point principles that will prepare you for a life of financial freedom.

In short, Seigel's main objective is to teach you how to manage your money in a way that makes it work in your favor, instead of taking over your life. 

2. If You Need a Kick in the Debts: "The Total Money Makeover"

If you're unfamiliar with Dave Ramsey and his highly successful show "The Dave Ramsey Show," you're in for a good time. And if your debts are taking over your life, then he definitely has the cure.

His latest edition is "The Total Money Makeover Classic Edition: A Proven Plan for Financial Fitness," it will include what's known as "Dave Rants" about specific financial pitfalls that people tend to fall into.

These encompass the delicate process of creating college funds, as well as discussing financials with your partner. 

One of the main reasons behind Dave Ramsey's success is the measured success of his methods that have been tried by thousands of people to eliminate their debt.

If you're at a stage where debt is actively crippling your life, and it's a legitimate threat to your financial wellbeing, then Dave Ramsey's tough-love approach in his book might be just what you need.

3. Financial Insight in a Memoir: "Rich Dad Poor Dad"

Robert Kiyosaki's "Rich Dad Poor Dad" has been a candle in the dark for the last 23 years when it comes to personal finance with a human element. 

The book was first published in 1997. Yet, you can get the updated 2017 edition, which became an instantaneous bestseller.

What's great about this book is the huge amounts of financial insight that's wrapped in a memoir form. Kiyosaki takes you through his childhood memories. Then, he highlights the way rich parents raise their children to properly manage their money. 

It's a comparison of financial literacy between working-class families and wealthy families. Interestingly enough, Kiyosaki takes a gentler approach towards debt than Dave Ramsey's fire-and-brimstone approach.

Also, he emphasizes the way you can create wealth slowly, regardless of your income amount. 

4. The Budget Crusher: "Your Money or Your Life"

Yes, the bane of the personal-finance averse's existence. 

However, the way "Your Money or Your Life: Nine Steps to Transforming Your Relationship with Money and Achieving Financial Independence" approaches budgeting is rather unique. 

The authors emphasize the core reason behind your need for financial freedom. You want to have better finances to do what you want and be happier, right?

Well, Robin and Dominquez actually suggest that living on a tight budget will make you happier than ever before. 

It sounds like the opposite of what pop culture tells us about the American dream. However, they present it as having the power to choose the career or job that you'd enjoy.

They believe that earning money shouldn't make you utterly miserable every day on your way to work.

How to reach that level of happiness? All you need to do is budget according to your income and lifestyle. The book focuses on the overarching philosophy of living within your means. 

5. For the Wealth Builder: "The Automatic Millionaire"

After getting a bit comfortable with your personal finances, like savings and budgeting, it's time to give investing a closer look.

David Bach's "The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich" cuts through the white noise by giving you a one-step plan.

Starting with a success story about a couple who've reached financial independence, with two-mortgage-free homes and retirement savings. 

The main twist is that they were able to do so on a modest income, so no undercover wealthy people here. 

The author's aim is breaking down this one-step process that would enable you to copy what the couple did, which —in turn— will allow you to achieve the same levels of success. 

Furthermore, this book has no budgeting spreadsheets, and he doesn't ask you to earn six figures a year in order to be 'successful.'

Ready to Take on the World?

Sometimes, all we need is someone to tell us that we can do it. 

When that "someone" is an expert in their field and an author of multiple international bestseller books, we start to believe that we can take control over our personal finances.

Now, after getting to know the top five personal finance books, it's time to read them all. However, we know that sometimes time is not in your favor. In that case, you can use sumizeit to quickly read the main takeaways of all of those books. 

You can go ahead and sign up for our free trial to get started. 

In addition, you can check out our blog for useful content on productivity and even how to build a successful startup.