We could all do with a little extra money in our pockets, particularly when it comes to saving up for something big like a holiday or a new home. And being able to manage money well is often an even bigger priority if you have ever found yourself living paycheck to paycheck each month, or you have found yourself in debt.
Knowing where to start with your personal finances can be overwhelming, but thankfully there is an abundance of valuable advice and budgeting plans out there to help you get a better grip on your money. So, with some time, consideration, and a bit of guidance, you can get learn how to manage your money more effectively and make your income go that bit further.
To make your life easier, here are our recommendations for books that will help you become your own financial advisor and take control of your personal finances. These books can help you understand the basics such as how to budget, create an emergency fund, or pay off debt, as well as provide advice on how to invest your money and reach financial independence.
So without further ado, let’s get stuck in!
What are the best personal finance books?
We’ve compiled a list of the 10 best personal finance books to help you on your way to achieving your financial goals by providing practical advice on effective money management.
1. The Total Money Makeover: A Proven Plan for Financial Fitness
Finance coach Dave Ramsey takes the nonsense and get-rich-quick schemes out of money management in this simple guide to get your finances back in order. In this book, he addresses the most dangerous money myths that can set you back from achieving your goals, whether that’s buying a house or freeing yourself from debt.
The classic edition of this personal finance book provides you with what you need to effectively ‘makeover’ your bank account by working on your financial fitness by creating a plan to pay off debt and secure savings to prepare you for emergencies and retirement.
2. Your Money or Your Life
Based on the combined experience of the authors Vicki Robin and Joe Dominguez, Your Money or Your Life is packed with examples, stories, and experiences of individuals who have tried and tested their nine-step program to achieve financial independence.
The aim of the book is to redefine your relationship with money into more than simply how much you earn and how much debt you have. Instead, the aim is to help you identify the meaning of money in your life and how to feel satisfied and fulfilled by it. The authors present a guide to understanding the basics of money as well as ways to reimagine your aspirations and goals.
3. Rich Dad, Poor Dad
First published in 1997, ‘Rich Dad, Poor Dad’ is an autobiographical account of the author Robert Kiyosaki’s main influential figures — also known as his ‘rich dad’ and ‘poor dad’. His ‘poor dad’ is his biological father, an intelligent but not financially well-off man who believed in hard work and finding a high-paying job. His ‘rich dad’ refers to his best friend’s father who was similar to Kiyosaki’s own father in terms of work ethic but he believed in financial education and learning how to make money work for you.
The book starts with Kiyosaki’s perspective of the mistakes that held his own father back from financial success, and the things he learned from observing how his best friend’s father made money. The book then addresses five obstacles that are faced before you can become rich and hold on to that wealth, all while debunking the myth that the rich are simply born wealthy.
To finish off, Kiyosaki provides a ten-step action plan with the aim of developing your financial intelligence so you can maintain your wealth.
4. Think and Grow Rich
Originally published during the Great Depression, this 1937 classic broke the mould when it dared to ask ‘What makes a winner?’ In it, author Napoleon Hill turns to the likes of millionaires such as Thomas Edison and Henry Ford to illustrate the principles of how to become just that, a millionaire.
Hill produced his own laws of success that can help you not only improve your financial situation but also work on personal development. To this day, his book is among the 10 best-selling self-help books of all time.
5. The Automatic Millionaire
Bestselling author David Bach returns after Smart Women Finish Rich, Smart Couples Finish Rich and Start Late, Finish Richto answer the burning question: What’s the secret to getting rich?
The Automatic Millionaire is the story of the average American couple who succeeds in putting their two children through college, building up more than a million dollars in savings, and buying two homes without a mortgage, all on a joint income of less than $55,000 a year — an impressive feat!
So how is it possible? This book throws budgeting and the need for willpower out the window and instead teaches a realistic technique based on tried and tested principles. The premise is that you don’t have to make a lot of money to become rich and by automating your financial life, you too can become an ‘Automatic Millionaire’.
6. The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness
Award-winning author Morgan Housel presents 19 short stories that explore the strange ways individuals think about money in order to identify how we can learn to deal with life’s important issues and events.
The Psychology of Money points out that financial success is not necessarily about what you know but more about your attitude and behaviour, as well as external factors such as risk. Housel also explains how you can use psychology to your advantage and how to make smarter financial decisions.
7. The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
In this 1996 bestseller, Thomas J. Stanley and William D. Danko explore seven common traits that are prevalent among the wealthy, based on research carried out by the authors on profiles of American millionaires.
The book provides a simple formula for financial success and increasing your chances of becoming a millionaire if that is your ultimate goal. It also guides you in how to save money, calculate your financial potential, and avoid mistakes that will inevitably set you back by hindering your progress.
8. The One-Page Financial Plan: A Simple Way to Be Smart About Your Money
Certified Financial Planner and New York Times contributor Carl Richards presents the One-Page Financial Plan, a simplified plan that will help you feel less overwhelmed and burdened by your finances. He also proves that you don’t need a long and complex action plan to effectively manage your money — if anything this is likely to demotivate you before you even start trying to tackle your money issues.
Richards also teaches you how to set reasonable and flexible goals which can be tailored as you progress, ways to make budgeting a more enjoyable occupation, and also how to redefine your relationship with debt. Plus, if you’re a visual learner, you’ll enjoy the fun yet educational illustrations that have been placed throughout the book.
9. Smart Women Love Money: 5 Simple, Life-Changing Rules of Investing
Wealth management advisor Alice Finn utilises over 20 years of experience to present five life-changing rules for investing your money wisely to secure your financial future.
This book addresses the persistent issue of women earning less than their male counterparts and as a result, it is crucial for women to make their money work as hard as possible. Regardless of your salary, it is possible to achieve this with a little guidance.
Finn also explains that keeping money ‘safe’ means not restricting your options to savings accounts, and instead, there are ways to carefully invest your money and capitalise on it in the process. This can mean finally being able to achieve your dreams of being able to pay for education, a house, or even carry out a career change.
10. Get Good With Money: Ten Simple Steps to Becoming Financially Whole
Tiffany Aliche, also known as The Budgetnista, provides a ten-step formula to pay off debt and set yourself up for the future by building wealth and reaching ‘financial wholeness’.
Once a successful pre-school teacher, Aliche lost her savings after the 2008 financial crisis which led to her charting her path to financial recovery. The principles she used are revealed in her guide and have subsequently helped millions pay off debt, save money, and secure their financial future.
In her book, you’ll also find checklists and worksheets which will help you assess your current situation and provide guidance on how to fix specific issues such as spending more than you make, or not having enough income. And if that wasn’t enough, the book contains advanced expert advice that even Aliche herself has used.