Books help us to understand the world and you can find a book on any topic. If you are new to investment or want to understand the different investment options, picking up a good personal finance book can be of immense help. As there are hundreds of books on money and personal finance, we have shortlisted 5 personal finance books for beginners.
here are the top five personal finance books for beginners
You are reading: Books on finance for beginners
1. what every Indian should know before investing
If you’ve always wanted to save and invest but don’t know where to start, here’s a book. The book ‘What Every Indian Should Know Before Investing’ is one of the best personal finance books for beginners who want to explore the realm of personal finance.
describes all the terms and concepts you need to know in an easy-to-read format. uses simple language and does not bombard the reader with technical jargon. the book simplifies everything into an easily digestible form.
The book discusses the different investment options available in India. Whether you want information on public provident funds (ppf), mutual funds, or insurance, you’ll get it all here. this makes financial planning easier for investors who have started investing or are looking to invest. the best way to consume the book might be to write your doubts and conclusions of the book in the notes section.
2. rich dad, poor dad
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The book opens our eyes to the world of social conditioning in which we have grown up. The author, Robert Kiyosaki, explains why the rich stay rich and the poor stay poor. is one of the best personal finance books for beginners. he teaches you the basics of finance such as assets and liabilities, the cash flow quadrant, etc. some of the important concepts in the book include wealth, investing in oneself, and working to learn not earn. Ultimately, the book tries to say that the rich work to earn more money and not to pay bills.
Because the book compares the differences in attitudes toward money between his rich dad (his friend’s father) and his poor dad (his biological father), there is never a dull moment in the book. one can easily relate their own parents to the poor dad and change their attitude and money habits.
3. total change of money
dave ramsey’s total money makeover lays the foundation for a healthy financial lifestyle. the book draws analogies between saving money and losing weight. Just as we know that to lose weight we need to consume fewer calories than we can burn, saving money is also similar. we need to earn more money than we spend. these things are simple but not easy to implement and the book acknowledges that. it also points out how we confuse needs and wants and how we avoid facing our financial problems until they become severe.
Many times, our decisions are linked to other people and we do things so as not to miss the latest trends. As fun as it sounds, it has a negative impact on our financial lives. ramsey in her book advocates educating ourselves in personal finance so that we have better control of our financial lives.
4. the richest man in babylon
Many of us spend without thinking. and therefore, we are left with no money for our future. The Richest Man in Babylon by George Clason is one of the best books on personal finance. the book drives home the point that we can only create wealth if we realize that part of the money we make is ours to keep. the book talks about saving at least 10% of income. the idea is to pay ourselves first instead of goods or services.
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The book lists 7 simple rules of money. these are:
- save money
- don’t spend more than you need
- invest wisely
- avoid investments that sound too good to be true
- own your home
- secure future income
- improve your ability to earn
read this book and you will never look at money the same way again.
5. think and grow rich
Think and Grow Rich is one of the iconic personal finance books written by Napoleon Hill. the book does not talk about financial ratios and other financial terms. The book lays the foundation for a full life.
To achieve goals, Hill says one must have a strong desire to achieve them. he advises writing a clear and concise statement of the amount of money he would like to acquire or the goal he wishes to achieve. To create a sense of urgency, include the day you would like to have that money.
Imagination also plays an important role in helping a person achieve their goals. therefore, it is important to read the affirmations twice a day, before going to sleep and immediately after getting up in the morning.
conclusion:
Reading a book on personal finance is one of the first steps you can take toward your financial freedom and goals. but the journey does not end with reading. You can only be successful in your financial life i.e. pay off your debt or save money when you take the first step towards it.
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