You may have heard of financial freedom, the fire movement and early retirement, and now you want to know more. You’d like to start with the best possible books to discover the basics of building wealth. After careful consideration, I managed to pick what I consider to be the best finance books for beginners to grow your wealth to financial independence.
You may be wondering, why don’t you have more money saved? how do you pay for that broken car window? How do you pay for insurance, fix your garage or the roof of your house? These books will help you form the foundation for financial education and teach you how to start accumulating money, so you can have a budget to pay for all those expenses.
You are reading: Best financial books for beginners
contain basic steps on how to budget, pay off debt, save money, invest, and achieve financial independence. If you don’t know what financial independence is, it’s when you have a stream of passive income that is higher than your living expenses. it means that you no longer have to work, the money keeps coming in and you can do whatever you want. Wouldn’t that be a great feeling?
Can we achieve financial independence? how do we get there? well, I’m in the same boat, and the first thing I did was find the best finance books for beginners and start reading.
The books on this list represent the pillars of financial education for beginners.
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What are the best finance books for beginners?
1. the richest man in babylon by george clason
This is arguably the best finance book for beginners.
The Richest Man in Babylon is an amazing book for its simplicity and the way it teaches you about finances. is a series of personal finance lessons taught through parables set in ancient Babylon.
He uses ancient Babylon as the setting for all the stories he tells, and through these stories you will see how easy it is to get rich. We like to complicate our lives all the time, but when it comes to financing it’s important to keep things simple. this book will help you with this.
The book is easy to read, you can finish it in a day or two of leisurely reading. will give you essential financial advice and help you begin to form essential personal financial habits. so go get it and ‘start fattening your bag‘ ;).
2. get a financial life by beth kobliner
if you’re 20, read it now. if you’re older, read it yesterday.
The book is packed with lots of practical basic financial information that is easy to read and understand.
build a financial life will give you the basics of financial planning, from money markets to CDs and IRAs. By the time you finish the book, you’ll be well versed in the jargon of the financial world.
Being an extremely useful book, you’ll refer to it later for reference when you have financial questions. It’s an extremely useful read, written for everyone to understand, and it will start building the motivation you need to save money and start taking care of your money. If you don’t take care of your money, your money won’t take care of you.
p.s. If some concepts don’t seem easy to you, don’t worry. It’s normal, go to the next book and continue reading.
3. the simple path to riches by jl collins
This book is about how to achieve financial independence slowly.
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It’s not about getting rich quick. It is not about cheating the system or using complicated strategies to invest. it’s about using sound principles to achieve financial wealth.
Being a simple investment book, full of humor and empathy, it is very accessible and will explain important concepts about financial independence in a fun way.
The Simple Path to Riches gets right to the point with clear advice on how to invest. Some people think that investing is difficult and complex, but in essence, it is very simple. this book will help you see that.
4. the millionaire next door by thomas stanley
When you think of a millionaire, what do you imagine?
Can you imagine someone spending a lot of money on flashy clothes, cars and parties? if you do, then you are like me and most people in the united states.
but we’re wrong.
Most millionaires are not like that. they do not spend money unnecessarily, they are frugal. they don’t gamble, they invest in safe things, like index funds. most of them are homeowners, first-generation rich, and did not receive any inheritance. most millionaires live below their means, even after striking it rich. and most of them are well educated and save like crazy.
the millionaire next door is something like an interpretation book of the greatest experiment ever carried out on millionaires. for most of us, it changed the image of our reality. It will show you how millionaires live, who they are and how they became millionaires in the first place. It doesn’t mean we have to be that way, but it does provide a fascinating insight into the average American millionaire.
The conclusions of the experiment in this book are fascinating, but you can easily read a third of this book and skip the rest. After that, it’s honestly just beating a dead horse, and I just want to save you some time.
5. your money or your life by vicki robin and joe dominguez
If you’re new to financial independence and the fire movement, this book is sure to leave a lasting impression on you.
is one of the most lucid, insightful and valuable books on money. I have met people who said they think about this book years after they read it. that’s how powerful it can be. The idea of early retirement on a small salary may seem ridiculous to some, but this book shows how it’s not crazy at all. it is possible.
ymyl may not be the most modern book on investing, but it does a great job of teaching you how to start organizing your finances from a total net worth perspective, not just budgeting paycheck to paycheck. . so pay attention to those chapters.
This book may or may not be revolutionary for you. One thing is for sure: it will probably change your emotional relationship with money and the way you look at and experience the material world.
6. i will teach you to be rich by ramit sethi
one of the best finance books for beginners, by far. everyone should read this.
provides practical, step-by-step suggestions for getting your finances in order. This book is different from many other financial books in that it has a variety of different practical tips rather than one main piece of advice for achieving financial independence.
I’ll Teach You To Be Rich is aimed at the younger generation and financial beginners, but if you’re new to the fire movement, this book is for you. , no matter your age. And the fact is, the sooner you read this book, the better. It’s worth the price and time to read because it will give you a solid foundation and concrete tools to use in many situations to reach your financial goals.
7. the little common sense investing book by john bogle
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To get rich, you need to start investing.
The earlier you start the better, and this is a great book to introduce you to that world. This book is easy to follow and you shouldn’t be scared because it has the word “invest” in it. you need to invest. you should invest.
the author john c. bogle was the founder & CEO of vanguard, and he created index investing.
Don’t you know which is the best investment? then this little common sense investing book will show you the best. what the heck, I’ll tell you: it’s an index fund. investing in index funds and being consistent about it is one of the best ways to get rich.
The market is always growing, so investing in the s&p 500 index or a total market index is a no-brainer. keep buying consistently over time, stay on track and always assess your risk correctly (have enough cash or bonds on hand to get a good night’s sleep).
8. your money and your brain by jason zweig
After the basics, it’s important to learn about the psychological aspect of investing, so you can avoid the mistakes most investors make.
Your Money and Your Brain is an easily accessible behavioral finance book for beginning investors. touches on how the body reacts physically and mentally to changes in the stock market. it does so through a fascinating survey that demonstrates how people can be convinced to act against their interests, senses, and goals.
The human brain is ancient and still optimized for the hunter-gatherer society where humans have spent most of their existence. To overcome the obstacles that arise from this, Zweig will guide you with hints he leaves after each chapter to help you avoid being fooled.
It will help you obsess less about the stock market and increase your happiness, which comes from being involved in a community and having a cause, rather than having possessions that fade over time.
An interesting and must read to take a look at the psychology of an average investor.
9. you can be a stock market genius by joel greenblatt
This is an excellent book overall and one of the best investing books ever written. being quite different from almost all other similar books, it focuses on finding special situations to invest.
you can be a stock market genius will open your eyes to new opportunities to consider when investing, from spin-offs, mergers and acquisitions to bankruptcies. the book does this in a very simple and fun way.
joel was able to make reading complex topics easy and fun, making this book an excellent read for beginners looking to invest.
and invest we must. so get it, read it and increase your value. You will notice that when you increase your value, your material wealth will also increase, and with this, your ability to take care of your friends and family, and improve your community and the world.
final thoughts
Money management is relatively simple at its core, but it can become complex if we don’t recognize and stick to the basic principles that make our wealth grow.
Budget and reduce expenses, pay off high-interest debt, contribute to IRA, save for retirement, invest consistently and enjoy life. But in order to do that, we need to learn, and these books are a great help for us to get rich, take care of our families, improve our communities, and live a happier life in general.
And if you’re looking for some fact-based newspapers for financial information, look into the Wall Street Journal (especially Barrons) or the Financial Times. both are very reliable when it comes to coverage of the financial world, including some investment tips and information.
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