Do you know the fact that these books have taught their readers more about personal finance than they learned in college as a finance major? In this article, you will find the Best Books to Read on Finance of all time. Every single book on the list had a huge impact on millions of people by changing the trajectory of their career life. You will learn everything about money by reading these books. It will expand your financial skills, teach you to manage your emotions, and encourage you to invest your money confidently. These are not just informative but very motivating and inspiring. And don’t just read the books but also apply the concepts you learned into your life to acquire financial freedom in the long run.
These books are perfect for aspiring millionaires, someone who is in debt to get out of it, and even for college students to help them make their financial skills strong to start up their careers.
So, below are some of the best book recommendations on finance, take a look:
20 Best Finance Books To Read To Get Rich:
1. The Richest Man in Babylon by George Samuel Clason
The story narrated in this book by George is about a king in Babylon. He is trying to make the rest of his subjects financially wealthy, just like the richest man in Babylon. The book is very informative and helpful especially for someone who is not wealthy from birth. In this book, George Clason had stated solid principles of how to make and manage money in a way that you can completely relate to. These proven principles won’t change today, have not changed hundreds of years, and will never change for hundreds of years. And this is the reason why it is called one of the best classic books.
2. The Bogleheads’ Guide To Investing by Mel Lindauer, Michael LeBoeuf, and Taylor Larimore
The book is a guide on how to invest your money based on John Bogle’s philosophy. It starts with the basics of investing and gradually moves onto intermediate and advanced topics. And the book is more for index fund investors and not necessarily for active investors. I would say the book will transform a reader from a paycheck mentality to a net worth mentality. Basically to get people thinking not only about how much money they are earning and saving. But also to make them think about the best and effective ways to invest their money. The book has very plain language which is easy to understand and thus beginner-friendly.
3. The Intelligent Investor by Benjamin Graham
The Intelligent Investor is also referred to as the Bible of Investing. The book explains how value investing works. Value investing is nothing but focusing on companies that have higher intrinsic value than what their trading price currently is. For those who don’t know, Warren Buffet is one of the most successful investors of all time and this book is pretty much the basis of his investment philosophy. It is a perfect book for active investors who are looking to invest in individual or underpriced companies.
4. Think And Grow Rich by Napoleon Hill
The book, Think And Grow Rich, comes at the top place in personal finance books. For more than twenty years, Napoleon Hill interviewed and learned about people who had made millions of dollars from scratch. The primary teaching of the book is that it does not take money to make money. It states that you do not necessarily have to have money to be rich. However, the main thing that will make you rich is a desire and a plan to make money. The book tells you how all types of ideas and opportunities will come for you once you are determined to make money.
5. Total Money Makeover by Dave Ramsey
In this book, Dave explains how to get out of debt and eliminate it using small little steps called his baby steps. You can build the financial future of your dreams by using these seven baby steps. The book gives you real-life examples of different people that followed these baby steps and the impact that had in their life. One of the best takeaways from this book would be, always have 1000 dollars in your emergency funds that way it will give you peace of mind to pay off debt. And Dave also teaches how paying down the debt beginning with smallest to largest is a more effective and smart idea. Since the language used in the book is pretty straightforward, I would recommend this book to beginners.
6. Rich Dad Poor Dad by Robert Kiyosaki
Rich dad poor dad has to be on the list because it is the best-selling personal finance book of all time. In this book, Robert Kiyosaki had mentioned things the rich dad teaches their kid about money that the poor and middle class do not. Kiyosaki talked about the money lessons he learned from his two dads. The poor dad means his real father and the rich dad means his best friend’s dad. Even though his poor dad was hard working and highly educated, he still was financially weak. Whereas his rich dad who didn’t even finish high school was one of the richest businessmen in Hawaii. This book will expand your financial skills. I must say even though the teachings are pretty high level, you will not get a whole lot of actionable detailed advice. So if you’re looking for more step-by-step guides then the next book is for you.
7. Rich Dad’s Cashflow Quadrant (part 2 of Rich Dad Poor Dad) by Robert Kiyosaki
In this book, Kiyosaki narrates the story of him and his wife Kim about how they used to be homeless and then how they got out of it and have become financially free in just a few years. It is an overwhelming inspiring story. Kiyosaki lays out seven steps to financial freedom which he along with his wife used to get out of being homeless and to retire young and rich. He uses the cash flow quadrant to differentiate between the cash flows of employers, businessmen, self-employed, and investors. He makes you decide in which quadrant you belong and shifts your mindset to be in the better cash-flowing quadrant.
8. I Will Teach You To Be Rich by Ramit Sethi
The book can be referred to as the best guide on financial adulting. Not to mention, Ramit has got a weird kind of humor in this book that will crack you up. He had suggested some best tips on where to open the bank accounts, what credit cards to use, some best ways to use your credit cards, where to open your Roth IRA, the way to get out of debt as well as how to budget your money between fixed charges, saving, investing and guilt-free spendings. His main goal is to automate everything once you are saving and managing your money.
9. The 4-Week Workweek (how to escape your 9-5 and live anywhere) by Timothy Ferriss
This book will inspire you to think out of the box from the traditional 9-5 job life. One important outcome from the book could be knowing the importance of time and location freedom. Once you have total freedom over when and where you work, you’re already a part of the new rich. The new rich don’t necessarily mean you have a ton of money. However, they are someone who has an automated source of passive income which allows them to work from anywhere and only as much as they want to. In this book, Tim will guide you on creating passive income streams that will help you to enjoy the new rich lifestyle. He has also mentioned some tips for employees who can live the new rich lifestyle by becoming efficient with their time and priorities. All and all it’s a cool book that changes your opinion of productivity, time, and money.
10. The Little Book Of Common Sense Investing by John Bogle
For those who are unaware who John Bogle is, he is a founder of Vanguard and the OG of index fund investing. Today the financial world has become very complicated where there is always some genius, attempting to sell you something and profit off your lack of information. Well, this book is very straightforward and offers you an unbiased clarification of finance. The book is so popular that there is now a whole community of investors who live with John Bogle’s philosophy. Bogle explains why index funds outperform other kinds of funds over the long run. He had also mentioned the specifics like what type of stock index funds and bond index funds to invest in, what percentage of your money to invest in each, and so on. Bogle lays all it out in a way that’s super easy to understand. His investing philosophy is insanely simple and effective and will blow your mind.
11. The Little Book That Still Beats The Market by Joel Greenblatt
For those who don’t know, Joel Greenblatt is a hedge fund manager of Gotham capital. It is a value fund that reported a 40 percent annual return from 1985 to 2006. It is surprising how Joel condenses his entire finance philosophy into this one very little book. In this book, Greenblatt has presented a simple way to choose stocks that involves looking at only two metrics. And surprisingly, these metrics have predicted which stocks will make you a lot of money over time. The book is a guide on how to use those metrics and make double-digit returns in the stock market. Overall this book is the best beginner-friendly crash course on stocks and is a must-finance read.
12. InvestED by Danielle Town and Phil Town
Daniel wrote this book along with her father Phil Town who is a professional hedge fund manager. The book can be referred to as a funny dialogue between Daniel and her dad who tries to teach her about investing. The book is a documentary about her journey from knowing nothing about investing to having enough courage as well as knowledge to put her money in stocks. The thing that is great about this book is that it gives you step-by-step guidance on how to do detailed research about a company. Even though it’s a pretty detailed book that teaches advanced concepts, the information is presented in a way that anyone can understand. It’s a very practical and beginner-friendly read.
13. The Dhandho Investor by Mohnish Pabrai
The Dhandho Investor is based on the fact that the main key to generate high returns with low risks is by taking what Mohnish called “Asymmetrical Bets.” In other words, investments have a high potential for major upside and a low potential for limited downside. So this low-risk high-return approach to investing is the one that Mohnish calls a dhandho method. One of the most remarkable examples he gives while explaining the method is the story of Patels. The Patels are nothing but a small group of Indian ethnicities. They came to the United States in the 1970s as immigrants with zero money and zero assets to their name. However, by following the Dhandho method, the Patels became the largest owners of motels in the entire country. Using the Dhandho method this family went from nothing to owning 40 billion dollars in motel assets over the span of just thirty-five years. Mohnish has also suggested some of the best websites and publications for researching stocks. So the book gives not only practical but actionable advice as well.
14. Principles by Ray Dalio Ray
Dalio is a self-made billionaire. In this book, he has not just talked about money but also about the principles. The book is divided into three sections. The first one is all about his journey, where he started, and where he got. The next two are broken down by life principles and work principles. He guides the readers on how to make better and more informed decisions. Ray teaches you critical thinking to be more aware. Just because nowadays everybody is looking for a quick fix, they usually forget about the principles. Not everyone is aware of the fact that the tactics could change but principles are the fundamental thing that guides the decision-making process and that rarely change. And no doubt, every single decision in finance has a great impact on our career.
15. The Success System That Never Fails by W. Clement Stone
This book is a must-read if you are an aspiring millionaire. I’m sure you must have heard of the book “Think And Grow Rich” by Napoleon Hill which is a great book to grow financially. However, another book that is not as popular but still just critical is this book, “The Success System That Never Fails.” Now you might be aware of the fact that in the later years of Napoleon Hill, W. Clement Stone was running an insurance company and generating millions and millions of dollars in revenue. And he hired Napoleon Hill as his sales trader at his organization. One of the most highlighted things in this book is the importance of your environment that supports your growth instead of drowning you.
16. How To Be Rich by Jay Paul Getty Jay
Paul Getty is one of the richest men of our time. And if you want to know how to be a millionaire, Jay is the best person to learn from. The book is very unique and interesting. It is not about how to get rich but about how to be rich. Now, I am not going to spoil the surprise but you must read the book and see how a billionaire views money and views life. It is a book that will give a glimpse of how one of the richest men of our times thinks about businesses and money.
17. Broke Millennial by Erin Lowry
Now I’m sure the majority of you have seen and heard about this book all over social media. This book is directed to the teenage group that will help them discover new ways to save money, make more money, and of course learn more about stocks and anything finance. This is a series where Erin does a full deep dive into other finance topics like Broke Millennial talks about money and Broke Millennial takes on investing. She does a really good job of explaining to the agencies what percentages make up your credit and things like that. And yes, it is an easy read.
18. Profit First by Mike Michalowicz
This book has proven to be a game-changer for so many readers. For people whose businesses aren’t generating more profits, this book is going to help them fix that. In this book, the magic formula is considered as “Sales minus profit is equal to your expenses.” Mike will help you remind yourself that in every business profit always comes first no matter the industry. So if you need that wake-up call, just go grab this book, you will not regret it.
19. Unshakable by Tony Robbins
In this book, Toni explains the importance of investing money and how you can do so. It has so many eye-opening facts that will take your confidence to a whole nother level as an investor. The book is divided into three sections- Wealth the rule book, Unshakable Playbook, and Psychological Wealth. In the first section, you will learn all about the foundational knowledge on how financial markets work. Section two explains the key principles of smart investing. And the last section is about the biggest mistakes you make as an investor and how to avoid them. So many people avoid investing because of fear. Well, Toni here will help you see things in a more informed way that will certainly change your mind. The most interesting part is the fact how Toni explains everything in the book with tons of numbers, charts, and statistics.
20. The Latte Factor by David Bach and John David Mann
It is a fiction book and follows the story of a young woman Zoe. The book uses her as a way to illustrate personal finance concepts. Zoe is in her late 20s, working at a travel magazine and being tempted to leave her job for another one that has better pay but a lot more stress. She is hoping for this next job to be her actual key to financial freedom. During the course of this book, she meets this new guy called Henry who teaches her three different financial lessons. This book is perfect for someone new to the world of personal finance and looking for overall guidance as opposed to a lot of jargon. It will encourage you and help break down important financial concepts in an easy-to-digest way.
So, these were the 20 books that will certainly help you to acquire financial freedom.
Hope you enjoyed it. Thanks for reading!
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
“I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.” – Warren Buffett
“Buy when everyone else is selling and hold until everyone else is buying. That’s not just a catchy slogan. It’s the very essence of successful investing.” – J. Paul Getty
“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey
“If you have trouble imagining a 20% loss in the stock market, you should not be in stocks.” – John Bogle
“I have a problem with too much money. I can’t reinvest it fast enough, and because I reinvest it, more money comes in. Yes, the rich do get richer.”- Robert Kiyosaki