Finance is a department that everyone around us is familiar with. We use finances in our day-to-day life, which has become a crucial part of the world. Because its management is not as easy as it seems, it is extremely important to have a good grip over our finances to be prepared for financial obstacles that might come at the later stages.
Finance plays the most significant role in holding a country’s economy altogether. All the firms, big and small, roll out their financial reports to see where the capital has been invested. If we take a daily life example, we also manage our finances related to our earnings to see where we have overspent or underspent. Hence, it is not easy to do it all ourselves.
In this article, we’ll have a glimpse of the top 10 best finance books to read that can help us understand and manage our finance better.
Top 10 Finance Books to Read to Understand Finance Better
1. Rich Dad, Poor Dad by Robert T. Kiyosaki
This is one of the best-selling best books on finance that teaches you about personal finances. It is a story of two fathers, one rich and one poor, who state their own perspective of financial knowledge to build wealth. It gives you some tips to manage your finances engagingly. It presents you with different chapters, each of which has something to take from. This book is the best for finances and can help you manage yours effectively. The takeaways from this book are– Invest your money in assets and not liabilities; don’t work to earn money; work to learn, and reinvest the profits you make.
2. Money by Tony Robbins
This book is represented as a research or interview done by the author Tony Robbins with more than 50 financial experts. The author guides the readers in a comprehensive way on how to feel financial freedom. The author has highlighted the essential part of everyone’s life, i.e., money, which is often seen as a taboo subject to talk about.
Moreover, it also presents the bitter truth of people and their perception of money. The takeaways from this book are that you can take risks, treat yourself with the money you make, and diversify your investment using a bucket system (security, growth, and dream bucket).
3. The Barefoot Investor by Scott Pape
This book is written by Australian farm boy Scott Pape who highlights the struggles of managing finances in the life of an ordinary being. The barefoot investor gives you some pieces of advice on how you can control your finances by doing basic things.
This book is great for those who’ve started to manage their money. Some takeaways from this book are– organizing a day to plan out your finances, having multiple bank accounts to improve your money management, and getting rid of your debts.
4. The One Page Financial Plan by Carl Richards
This book is based on the mistakes Carl Richards made in his finances and works as one of the effective financial literacy books. He has mapped out the simple ways to deal with your finances which would not feel like a burden. He has stated all the points from his personal life experience and shared them throughout this book.
Therefore, it perfectly illustrates the real-life problems that everyone faces while managing finances. Here are some of the takeaways from the one-page financial plan– know where you are starting from, ask yourself why money is important to you, and think of budgeting as a tool for awareness.
5. The Intelligent Investor by Benjamin Graham
Benjamin Graham is considered the father of security analysis and value investing. Warren Buffet defined Graham as one of the greatest investors of all time. In this book, the author has highlighted some of the main principles of investment combined with philosophy.
Though this book can be challenging, it is still considered one of the best finance books about investment. The key takeaways from this book are– always invest with the margin of safety; know what kind of investor you are; analyze the long term, and don’t get fooled for profits.
6. The Little Book that Beats the Market by Joel Greenblatt
One of the leading best books on finance The Little Book that Beats the Market, talks about investment in the stock market and how investors can outperform. It covers the data analysis of the recent financial crisis. The book has research and findings from the surroundings and explores the basic principles of successfully investing in the stock market.
It also represents the author’s tested formula from which the readers can take inspiration. Here are the key takeaways from this book– evaluate the stocks by going through earning yield and return; rank and combine these factors to find the best companies, and be patient with the results.
7. The Millionaire Fastlane by MJ DeMarco
This book is the story of the Author, MJ DeMarco, who teaches the readers how to be good at finance by relating to his story. This book consists of some great advice that is useful for the general public. The content of this book is different from what has been portrayed in the title.
Instead of giving a shortcut formula to the readers, this book is all bout building a foundation and expanding it. Here are some of the takeaways from this book– live as such so that your tomorrow can be secured; sacrifice today to secure your future, and work hard to become wealthy in the next five to ten years.
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8. Think and Grow Rich by Napoleon Hill
Think and Grow Rich is all about personal development that can lead you to become a successful individual. This book highlights the success that can be achieved through mental visualization. It is all about focusing on your inner self, which is solely responsible for achieving your goals.
The key highlights of this book are– believing in your thoughts, focusing on your creative and synthetic imagination, and subconscious mind also helps shape your future.
9. I Will Teach You to be Rich by Ramit Sethi
This book presents the lessons that individuals can implement in their lives to have a stable financial future. It highlights some of the basic points that anyone can follow. This book is perfect for beginners who hope to start with their finance management but don’t know have the right learning resources.
The financial advice in this book is easy to understand and faster to grasp. Here are the key takeaways from this book– only you’re responsible for your financial problems; know about how much money you have and where you want to put it, and start investing today.
10. The Total Money Makeover by Dave Ramsey
In this book, the author stresses the debt part of finance which is often taken lightly. The author talks about simple steps you can follow to eliminate your debt finances. It also talks about monthly budgets, investments for retirement, education, and many other elements that we face in our routine lives. The takeaways from this book are that debt is not normal; it’s a myth; Make a budget to list out all the elements present in your monthly budget, and understand the obstacles in your finance management.
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It is important to manage your finances carefully as it forms the foundation of your future success. The financial literacy books.listed above highlight all relevant and relatable pointers from which any beginner can start. Moreover, it also gives you real-life examples so that the readers can take inspiration from it and reshape their financial management.
Q1. How can I improve my financial understanding?
Answer. To improve your financial understanding, you should read about finance more often. Start reading newsletters, and books, listen to financial podcasts and have a conversation with financial experts.
Q2. What is basic financial knowledge?
Answer. Financial knowledge assists in containing risks and maintaining stability within finances. Financial basics explain Bank accounts, Internet Banking, Debit- Credit Cards, ATM functionalities, Insurance, and Investment related awareness.
Q3. What are the five principles of finance?
Answer. The five principles of finance are- Consistency Timeliness Justification Documentation, and Certification