the best books on financial independence, retiring early (fire) can teach us a lot. for example, how to retire in your 30s or 40s (or even earlier). but finding the gems among the wealth of literature can be quite a challenge.
If you know of a book about fire that should be on this list of the best books on financial independence, please let me know. reading is a good habit to broaden your horizon.
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the best books on financial independence, retiring early
your money or your life (v. robin and j. domínguez)
Your Money or Your Life is one of the best books on financial independence and was first published in 1992 but was updated in 2018. It is widely regarded as one of the best books on financial independence, retiring early ( fire). The 2018 version even features a foreword from Mr. money mustache.
The author, Vicki, is associated with the Voluntary Simplicity movement. frugality and simple living are important to her and she is one of the first sources of inspiration for would-be fire.
Getting into the content, your money or your life aims to help the reader improve their relationship with money and achieve economic independence. It is not limited to money management but goes further, emphasizing the importance of having a good quality of life, reducing environmental impact and giving.
Vicky takes a nine-step approach to this:
- make peace with the past
- be in the present: keep track of your life energy
- where does all your money go?
- three questions that will transform your life
- making vital energy visible
- valuing your vital energy: minimizing expenses
- valuing your vital energy: maximizing income
- the crossroads
- managing your finances
As you can see from this step-by-step list, the target group is people who are at the beginning of their journey to financial independence and are new to the concept of fire. people who are already on their fire journey may want to pass this book on. for everyone else, it provides an excellent roadmap and starting point.
A major selling point of the book is that people who complete the nine steps outlined in Your Money or Your Life reduce their spending, on average, by 25%. in particular, they also feel happier and have better relationships with others. therefore, its position on this list of the best books on financial independence is well deserved.
playing with fire (s. rieckens)
playing with fire is one of the best books on financial independence and was written by scott rieckens, a successful businessman living in southern california. While he was living what many consider to be the dream life with a wife, young son, luxurious home and fancy car, he too was depressed and overworked.
The turning point in Scott’s life came when he listened to a fire podcast and decided to change his life. In the process of her journey, Scott also created a movie with the same title (playing with the fire trailer).
scott was able to change his life by following the seven steps to shooting. playing with fire will show you how he quit his job and cut his expenses in half.
playing with fire is written with humor and provides excellent case studies. is more geared towards beginners on their fire journey, but is also suitable for those who are further along on their journey due to its emphasis on living frugally and happily.
the easy road to riches (j. l. collins)
The Simple Path to Riches was written by Jim Collins as a result of unsuccessful attempts to educate his daughter about money and is one of the best books on financial independence.
Like many people, your daughter knew the importance of money, but she didn’t bother to spend too much time thinking about it. Therefore, Ella Jim thought of a way to convey her lectures in a concise and easily understandable way.
And indeed, the core concept of the Simple Path to Wealth is very simple and easy to understand. There are three key lessons: Avoid debt, save half your income, and invest it in low-cost index funds.
The book’s chatty style appeals to the masses who aren’t interested in the details of investing but still want to build wealth. As a result, Jim is a strong advocate for index trackers which are widely used in the firefighting community to provide long term sustainable income.
the simple path to riches is aimed at a younger audience. however, it is also an interesting read for the financially uneducated (which probably means 90% of the population).
quit like a millionaire (k. shen and b. leung)
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Quit Like a Millionaire was written by Kirsty Shen, who retired at the ripe old age of 31 with a million dollar portfolio, and is one of the best books on financial independence. Kirsty did not accomplish this by winning the lottery or other professional success, but by slowly building sustainable wealth.
his story is very interesting, he started unassuming with the intention of saving for a house. However, instead of becoming a homeowner, Kirsty and her partner continued to rent, choosing to retire early and spend their time traveling.
kirsty writes about fire from an interesting perspective, that of an asian woman. we tend to perceive fire as an area dominated by white men, but kirsty points out that fire can be for everyone.
quit like a millionaire aims to make fire accessible to people who don’t feel like they can identify with the typical early retiree. therefore, its principles can be applied even if you have no savings at the moment or your finances are in disarray.
is a useful tool for those beginning their journey through fire and, due to its unique perspective, is interesting even for those who know the fundamental principles of fire.
the millionaire next door (t. j. stanley & w. d. danko)
Thomas Stanley and William Danko researched life in American high society to write one of the best books on financial independence. they were surprised to discover how little information was available. Digging deeper into this, the authors discovered that many wealthy people actually lived in modest housing.
It is very interesting to discover that the profile of the average millionaire is not as glamorous as we think. instead, they are ordinary people living frugally and happily.
Based on their findings, Thomas and William analyze the habits of these millionaires. unsurprisingly, these align perfectly with those generally found in the firefighting community, most importantly the notion of putting financial independence above social status.
At first, I was critical of the millionaire next door thinking he would be “too American.” however, the concept of fire is the same for everyone around the world and therefore the book is an interesting read for anyone.
you need a quote (j. mecham)
you need a budget is not a book of fire and stands out in this list of the best books on financial independence. The reason I still included it is because budgeting is a major struggle for many interested in pursuing financial independence. everyone wants to retire early, but few want to sit back and reflect on their expenses.
as the title implies, what you need is a budget is a simple book. removes all the complexities of personal finance and focuses on the most effective method for people to manage their money, a budget. The book includes chapters on budgeting as a couple, getting out of debt, teaching kids to budget, and what to do when you feel like quitting.
need a quote, also known as ynab, is also available as quote software. this is especially helpful for those who struggle with managing spreadsheets. however, keep in mind that you will have to pay $7 per month to use the software, while the book is a one-time cost.
financial freedom: a proven path to all the money you’ll ever need (eg sabatier)
grant sabatier wrote financial freedom, one of the best books on financial independence, after discovering that he was completely broke. five years later he was a millionaire. how did he accomplish this? him launching himself into personal finance, reading and learning about budgeting, investing and hustling.
In Financial Freedom, one of the best books on financial independence, provides a step-by-step plan to help others reach for the fire. Unlike other books, Financial Freedom focuses heavily on side hustle. Grant managed to earn $300,000 with side work alongside his regular job.
despite this, grant is not crazy about money and emphasizes that time is the crucial factor. time he should spend doing what he loves instead of working at a soulless desk.
meet the frugalwoods: achieving financial independence through simple living (eg willard thames)
elizabeth willard thames is another early retiree who achieved financial independence at age 32 and wrote one of the best books on financial independence. like so many others, elizabeth and her husband started out as nine-to-five workers. however, unlike her peers, they were able to save 70% of their income by living frugally.
meet the frugalwoods is not a manual that will provide you with a step-by-step roadmap. Instead, it follows Elizabeth’s life, almost like an autobiography. however, that doesn’t mean meet the frugalwoods is boring reading. it’s written in an easy-to-read style and gives you a lot to think about.
optional job: retire early without skimping on money (t. hester)
optional work, one of the best books on financial independence, by tanja hester wins the award for best cover (in my opinion). On a more serious note, Optional Work is written by another early retiree, Tanja Hester.
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When I tell people about my plans to retire early, half of them respond with words like retiring is so boring and why don’t you find a job you enjoy more. And to be honest, I really like my job.
This is where I really felt that the optional work understood me. Tanja emphasizes that being financially independent does not mean that you have to spend the rest of your days watching television.
However, the book is not limited to how to use your time after achieving financial independence. it also provides practical steps to get started and make your plan foolproof. after all, if you run out of money, you can’t just rejoin the workforce as if nothing ever happened. tanja emphasizes this in three sections:
- determine what kind of life will excite you
- create a conservative financial plan so you can live that life
- set yourself up to live your best “post-work” life
the steps to get to the fire are written for people residing in the united states. While the concepts will remain the same for you regardless of your location, readers expecting a simple guide may be more satisfied with the selection of books featured earlier in this list of the best books on financial independence.
Set for Life: Mastering Life, Money, and the American Dream (Scott Trench)
set for life is a new addition to my list of best books on financial independence and outlines the path to redundancy for everyday people. The author, Scott Trench, is the CEO and President of BigPockets, a company dedicated to helping you learn how to invest in real estate.
In addition to writing, Scott is an active real estate investor in the Denver market, currently managing a private portfolio of about $1.5 million and holding his Colorado real estate broker’s license.
In Set for Life, one of the best books on financial independence, Scott divides the journey to financial independence into three phases:
- part 1: the first $25,000
- part 2: $25,000 to $100,000
- part 3: going from $100,000 to financial freedom
Although this is in US dollars, the principles are applicable to people living in other countries with different currencies. As the best books on financial independence show, the concept of fire knows no boundaries.
scott clearly defines each phase with stated goals and a variety of strategies to help you succeed. for example, the first phase is characterized by frugality that will help you save the first $25,000.
This is due to the fact that a dollar (or pound) saved is worth more than a dollar (or pound) earned. This is because earnings are taxed, while savings are not. therefore, saving money is a more effective way to increase your savings.
In part 2, Scott advises making bolder financial decisions as he now has a safety cushion of $25,000. he introduces her to the concept of home hacking as a way to mitigate housing costs and increase her income.
Interestingly, Scott doesn’t go the route of defending side hustle. instead, she recommends focusing on her career and showing him how she can increase her income from his main job.
Finally, part 3 focuses on creating passive income streams. this includes, but is not limited to, investing in the stock market and real estate.
set for life focuses on action rather than theoretical thinking. it is written for average people without basic personal finance knowledge. however, if you have a good working knowledge of the financial world, you will still benefit from reading phases 2 and 3.
summary of the best books on financial independence, early retirement
If you’re interested in the best books on financial independence, retiring early, I recommend you try the following:
- your money or your life
- play with fire
- the easy road to riches
- quit like a millionaire
- millionaire next door
- need a budget
- financial freedom
- meet the frugalwoods
- optional job
- established for life
Before you spend money on these best books on financial independence, visit your local library to see if you can borrow them for free. Alternatively, you may be interested in listening to the best financial independence podcasts as well as the best financial independence books.
If you’re interested in starting your journey into the fire, you may want to first start by kicking your bad money habits and discovering easy ways to save money.
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