Financial literacy has become a hot topic in recent years. But it is still one area that most of us avoid. They know how to start the financial literacy journey would be a reason for it. While dealing with finance, one has to go through different layers of it – personal finance, budgeting, loans, investing, etc. The financial jargons make learning more complex. Even with all these excuses, we must admit that financial literacy is an essential aspect of personal and business growth. There is umpteen number of books produced every year on finance. Here we list 5 top financial books that will benefit your financial independence journey.
1. Rich Dad, Poor Dad by Robert T. Kiyosaki
This is arguably the most popular book about personal finances. It outlines the money lessons Kiyosaki learned from his two fathers—his dad and a friend’s dad, who’s the “rich dad” in the book. Kiyosaki advises readers on why they don’t necessarily have to make a lot of money to become rich, breaks down the difference between an asset and a liability, and challenges the idea that a house is an asset. The key takeaway from the book is that you can’t rely on the school system to teach your kids about money.
2. The Richest Man in Babylon by George S. Clason
The key takeaway from this book is to Pay yourself first, live within your means, and invest in what you know. Hailed as one of the best books on being thrifty, personal wealth, and financial planning, it’s no wonder The Richest Man in Babylon is still in circulation almost 100 years after it was published. It’s a collection of parables told from the perspective of a fictional man named Arkad, who came from being a scribe to become the richest man in Babylon. Through his journey, readers get lessons on how to generate wealth and protect and invest that money wisely.
3. The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel
This book urges you to analyze your relationship with money deeper. The Psychology of Money is a compilation of 19 short stories exploring how people think about money and teaches you how to make better sense of your relationship with money. It teaches you that money management is not just mathematical; it’s also emotional and psychological.
4. The Simple Path to Wealth by J L Collins
J L Collins is to be thanked for introducing terms like index fund investing and ETF into the vernacular of modern financial literacy. This book started as a blog series about stock investing and was later compiled into a single book in the type of a letter to his young adult daughter, who is not much into investing. This is the perfect guide if you’ve always wanted to learn more about how stocks work. You’ll learn how to save for long-term goals without diminishing your quality of life along the way.
5. I Will Teach You to Be Rich by Ramit Sethi
This witty take on investing challenges the notion that you have to sacrifice the things you like in order to be able to invest. What Sethi teaches instead is how to balance all the little splurges—i.e., mani-pedis, your everyday cup of coffee, ordering takeout, etc.—and allocate your finances to the right place. The key takeaway from the book is that Investing doesn’t require you to feel guilty about buying the things you want.
Keep reading the above books and stay updated about the trends in the finance industry. At SmartMoney Education, our goal is to motivate, inspire, and guide you in your journey towards financial wellness. To learn more, get in touch with us today and set up a one-on-one session.
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