In the present day situation managing and tracking the expenditure is a must, to have a indipendent and financial stability. Personal finance include various savings and investments, such as budgeting, insurance and even retirement planning. To help with these things there are lots of books to read and understand the importance and value of personal finance. Reading the books related to personal aid in understanding about how to save money right from earning till spending. The personal finance classes are not a major consideration in many schools and colleges, so the need is supplied with these kinds of personal finance books to learn about finance.
Overview Table: Top 5 Personal Finance Books
| Book Title | Author(s) | Year Published | Key Focus |
|---|---|---|---|
| I Will Teach You to Be Rich | Ramit Sethi | 2009 | Personal finance strategies for wealth accumulation |
| Rich Dad Poor Dad | Robert Kiyosaki | 1997 | Financial education, asset ownership, and entrepreneurship |
| The Total Money Makeover | Dave Ramsey | 2003 | Debt-free living and financial stability |
| The One Page Financial Plan | Carl Richards | 2015 | Simplified financial planning and goal setting |
| The Richest Engineer | Abhishek Kumar | 2017 | Financial independence through prudent investing |
Importance of Reading Personal Finance BooksÂ
 Personal Finance is an important things should be learnt and applied in their daily life, especially for teenagers who are in the first stage of earning their own money. If they learn to regulate their expenses and invest in correct platforms using their finance knowledge will be helpful for them in long run and youngsters will be hugely benefited when they get old as they have a financial stability. As the education related to personal finance is significantly fewer it’s better to study through books which was written by experts in the particular niche. Reading books will provide more real life examples and a reader will get a clear idea about their position and how to play the game of finance.Â
Top 5 personal finance booksÂ
1) I Will Teach You to Be Rich – Ramit Sethi
In the world of finance, this is one the most prominent personal finance books. The author Ramit Sethi is a self-taught financial expert and he helps people to understand the game of finance better with the book. The book is more suitable for people who are in their 20-30 years of age. This book will be great for both beginners and and intermediates as it deals with various aspects of finance.Â
The main concept of this book is to make you rich by following certain personal finance methods. He talks about how to use credit cards wisely, by doing it you’ll have a good cibil score and availing large loan amount will be easier. The main things he talks in the book is about investment and budgeting. The book tells certain real life incidents to make the understanding much clearer. If you are a person to invest in a long term period, this is the book you must study.
2) Rich dad poor dad – Robert Kiyosaki and Sharon Lechter
This book was written in 1997, talks about the importance of financial education and do wonders through investment in assets, owning a business also developing knowledge in the particular niche. The financial IQ is more important to be successful in personal finance.Â
In this book the story is said to be the real life experience of the author Kiyosaki. He talks about two father one is academically successful and another one is school- dropout. The well educated father works hardly but he is not able to save any money and when he is dead he left nothing but the debt he owned to be paid.Â
On the other hand the father who is school dropout. Worked hard invested in assets and he was an entrepreneur and when he is dead he left a huge empire of business to his son. The author tells about the money earned should be used properly in the way it helps us working smart with the hard earned money is the simple trick in the personal finance. Â
3)The Total Money Makeover –Â Dave RamseyÂ
The first publication of the book was in 2003 and the latest edition was updated in 2013. The book focuses on the ways to make a person stay out of his debts and bursting myths of the ways of making money. The book is all about the proven plan about the personal finance.Â
The Total Money Makeover is a book which helps to understand the financial game much better. The book provides various real life examples of people who followed the advices of Dave Ramsey and succeeded in their financial goals. The book motivates the readers to be involved in the personal finance. The book is considered to be one of the most important book in the niche of personal finance.Â
4) The One Page Financial Plan – Carl Richards
The One Page Financial Plan was published in 2015 and it is written in straightforward and simple language, which anyone can understand easily. The author talks about the financial values which can be helpful for a person in a long run.Â
The goal of the investors must be clear before investing, Richards always focused on simplicity in the financial planning, he does not complicate things. The diversity of the investment help in maintaining the risk levels low. The books tells various easy method to begin with the personal finance.
5) The Richest Engineer – Abhishek KumarÂ
The book was published in 2017 and it portrays a fictional storyline with which the author tells about the necessity of personal finance. Investing properly is the main message conveyed through the book. The novel doesn’t encourage the thought of becoming rich immediately. But gaining financial freedom through multiple smaller steps.Â
The novel is a fictional conversation between two friends Vinay and Ajay, who are IT Engineers. Vinay is a financial expert and their conversation in the novel was an eye opener for people who have not yet started to invest and take care of their own financial stability. The financial freedom will be based on higher salary packages is a myth bursted in their conversation. The novel tells about how a person can be financially independent with an average salary. The novel is must read for people who think their salary is too less to start investing.Â
Conclusion
These books will help you to understand more about the financial game and improve your skills to perform well. The more you invest your time in reading books of your niche is directly proportional to returns you will avail as a result. Reading books will provide lot of subjective knowledge and real life incidents and samples which may be closely related to your life.Â
FAQs:
- How can reading a finance book benefit me in real life?
- Finance books provide valuable insights into managing personal finances, understanding market trends, and making informed financial decisions in real-life situations.
- Are all finance books based on biographies or autobiographies?
- No, finance books include a variety of genres, including fictional novels and practical guides, offering diverse perspectives on financial management and investment strategies.
- How can I gain a better understanding of finance?
- Engage with financial experts, seek advice, and read extensively in the field of finance to deepen your understanding of financial concepts and strategies.
- What are the key lessons from “I Will Teach You to Be Rich” by Ramit Sethi?
- Ramit Sethi’s book offers insights into smart credit card usage, effective budgeting, and long-term investment strategies, making it a valuable resource for financial success.
- Why is “Rich Dad Poor Dad” by Robert Kiyosaki recommended for financial education?
- The book emphasizes the importance of financial education, asset ownership, and entrepreneurship, providing valuable lessons for building wealth and financial independence.
- What does “The Total Money Makeover” by Dave Ramsey focus on?
- Dave Ramsey’s book offers a proven plan for debt-free living and financial stability, empowering readers to take control of their finances and achieve financial freedom.
- How does “The One Page Financial Plan” by Carl Richards simplify financial planning?
- Carl Richards’ book simplifies financial planning by emphasizing clarity, simplicity, and the importance of setting clear financial goals, making it accessible for readers of all levels.
- What message does “The Richest Engineer” by Abhishek Kumar convey about personal finance?
- “The Richest Engineer” promotes the idea of financial independence through prudent investing, dispelling myths about high salaries and emphasizing the importance of smart financial decisions.
- Can reading personal finance books improve my financial skills?
- Yes, reading personal finance books provides practical knowledge, real-life examples, and actionable strategies to enhance financial literacy and improve financial management skills.
- Why is financial literacy important for individuals of all ages?
- Financial literacy empowers individuals to make informed decisions about saving, investing, and managing money effectively, leading to financial security and independence.