21 Personal Finance Books to Build Financial Well-Being
Far too many people think that it is boring to read books on personal finance. Yet money indeed makes the world go round! Anyone that strives towards wealth and prosperity will do themselves a great favor by becoming more astute about the way finance, markets and money works and what the rules are.
Here are a 21 of the best finance books on the topic in no particular order. They all offer lots of practical advice and step by step explanations. You may simply ask yourself why most of these books have been read by some of the richest people in the world.
1. Irrational Exuberance by Robert Shiller
Irrational Exuberance is an excellent work that examines the worst economic crisis that the world has seen since the stock market crashes of the 1930’s. Its value lies in the many lessons that we should all learn from this disaster. The author examines the causes of the catastrophe and clearly spell out how such disasters can be avoided in the future.
2. Against the Gods by Peter Bernstein
Against the Gods will introduce you to the world of risk management. Financial management, regardless of the amount of money that is involved, always involve some measure of risk. In this book you will learn how to use powerful tools and techniques to minimize the risk when you make decisions regarding your own money. The Wall Street Journal describes this personal finance book as “extraordinary and entertaining”.
3. Thinking Fast and Slow by Daniel Kahneman
In this extremely informative work the author, winner of the Nobel Prize for Economics, explores the two systems that govern all our actions. You will learn how to deliberately use these two systems to make financial decisions that are responsible yet profitable. The book has been awarded the National Academy of Sciences Best Book Award in 2012.
4. Too Big to Fail by Andrew Ross Sorkin
In this highly readable book the author, Andrew Ross Sorkin, examines the inside stories during the recent worldwide economic crisis. He shows how greed, fear, inflated egos and arrogance led the world towards the brink of economic collapse. You will find this book valuable because it also clearly show how to avoid the mistakes made by big players in the finance world.
5. The Law of Divine Compensation, On Work, Money and Miracles by Marianne Williamson
In this highly inspirational book the author shows you how your thoughts create your financial reality. She lists a number of spiritual principles that will help you to overcome financial stress and to unleash the power of divine abundance.
6. The Science of Getting Rich by Wallace Wattles
The author, Wallace Wattles, describes how the power of positive thinking can help you to create wealth. The book is very easy to read and understand. It contains step by step instructions and lessons that will teach you how to implement the Laws of Attraction to attract real wealth.
7. The 50th Law by 50c and Robert Green
The 50th Law by 50c and Robert Green is an entertaining yet powerful finance book on how to become successful in life and work by applying a single principle: “Fear Nothing!” If you think that no hip hop singer can teach you about finance and wealth you should perhaps think again! It has been described as the perfect book for new entrepreneurs.
8. How to Get Out of Debt, Stay Out of Debt & Live Prosperously by Jerrold Mundis
How to get out of debt is a practical, no-nonsense personal finance book that will convince you that it is necessary to get out of debt and to live frugally before you can start to create real wealth for yourself. You will learn numerous ways to eradicate your debt and throughout the book the principles employed by Debtors Anonymous is explained in great detail. If you struggle with debt, this is the book for you.
9. The Automatic Millionaire by David Bach
The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich is a step by step instruction manual by David Bach on how to apply the secret to becoming rich. You will be introduced to a realistic system, based on sound financial principles to implement the one secret to becoming rich beyond your wildest dreams.
10. Screw It, Let’s Do It by Richard Branson
Nobody will deny the fact that the author, Richard Branson, should know how to build wealth and to succeed in life. In this entertaining, yet practical book, he explains how he consistently applied sensible financial principles in order to achieve spectacular results. He places a high priority on conducting your life in such a way that it does not cause anyone or the environment any harm.
11. Think and Grow Rich by Napoleon Hill
Think and Grow Rich by Napoleon Hill may have been first published in 1937 but it remains one of the most authoritative works on creating personal wealth. He researched more than 500 self-made millionaires and concludes that getting rich is more about mentality than anything else. He will show you the barriers that hold you back and teach you how to think your way to success.
12. Business Adventures by John Brooks
Business Adventures is not a get-rich-quick book. It is a practical guide, underwritten by Bill Gates and Warren Buffet, that will teach you how to start your own successful business. It is not a step-by-step book either, but rather a serious work that examines the fundamental issues that play a role in establishing a strong business.
14. The Richest Man in Babylon by George S. Clason
The Richest Man in Babylon by George S. Clason was published in 1926 but is still regarded as one of the most influential books on creating personal wealth. His secrets to success are simple, yet practical. He will teach you that simple principles, such as paying yourself first and living within your means is the foundation of personal success.
15. Other People’s Money: The Real Business of Finance by John Kay
Other People’s Money was the Financial Times, Economist and Bloomberg Best Book of the year in 2015. In this compelling best seller the author argues that the focus of the financial sector is all wrong. He explains why he thinks that the primary purpose of the finance sector should be to manage other people’s money for the benefit of businesses and households.
16. Personal Finance for Dummies by Eric Tyson
If you want to gain control over your personal finances this is just the book for you. It is a practical guide that clearly points out the common mistakes that people make and how to avoid those mistakes. You will learn how to measure your own financial health and plan for savings, investments, retirement and the purchase of real estate.
17. Get A Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner
Get A Financial Life: Personal Finance has been on the New York Times best seller book list ever since it was published. It contains practical and sensible advice for younger adults. They have unique needs that are much different from the needs of the older generations and they came of age in the wake of one of the worst financial crisis the world has even experienced.
18. The Index Card: Why Personal Finance Doesn’t Have to be Complicated, Helaine Olen, Harold Pollack
Helaine Olen and Harold Pollack say that most of us are all too easily led to believe that finance is a complicated subject that requires specialist knowledge. This is not true, they say. In fact, anything you need to know about personal finance can be written on a single index card. This book on personal finance contains an easy to follow ten point action plan towards personal wealth.
19. The McGraw – Hill 36 – Hour Course in Finance for Non-Financial Managers by Robert A. Cooke
Regardless of the type of work you do, finance will always be a part of it. This valuable book will teach you the basics of financial management. You will learn how to interpret the numbers, how to ask intelligent questions and how to prepare financial reports.
20. Accounting and Finance for Non Specialists by Peter Atrill
This is the perfect personal finance book if you are contemplating starting up your own business. It will teach you how to implement a simple accounting system, how to monitor and manage cash flow and how to prepare budgets. There are also self assessment exercises and review questions.
21. The Lost Curriculum: What School Didn’t Teach Us About Personal Finance by Khari Parker
Khari Parker argues that the school system falls woefully short when it comes to teach youngsters about personal financial management. This book aims to correct the situation. Both students and adults will benefit from learning how to purchase real estate, how to improve your credit score and how to generate extra income.
Best Personal Finance Books – Conclusion
Money may not buy you happiness, but a severe shortage of money will sure buy you misery! It is vital that you learn how to manage your finances prudently, even if you earn very little. The personal finance books listed here contain valuable advice that may just help you to finally escape the clutches of debt and to start building a secure financial future.
What is the best personal finance book in your opinion? Share your lists in the comments below.