Is this you?
- However many times you try you just can’t get the hang of how to handle money
- Your budget seems to be all over the place
- If you get a bonus, you don’t how to make use of it wisely
- You are afraid that if you learn through experience, you would have lost time that you could have used to save a pile of money
What you need is a book! There are several books on personal finance that can teach you a thing or two about money. And then there are books that help you manage your money. We are talking about the latter ones. Here are some books that need to be on your bookshelf if you want to save for the long term. Read on to find out all about them.
‘I will teach you to be rich’ by Ramit Sethi
What it’s about: Aimed at twenty-somethings, this is a quirky little book by an Indian author. It is for those who are just starting out with money. It tells you exactly how to start putting your money in order and where to put it so that it grows. The book may not actually make you rich but can show you how to get there. This is a step-step guide to saving, investing and reducing your debts. There are totally 9 chapters with popular topics such as Credit Cards, Investing, Budgeting and Banks.
What’s unique: Unlike books that use a lot of jargon which confuses people, this one tells you what you can actually do. For instance, Sethi advises automating your savings and investments, which is the best way forward if you want to reach your goals. Also, his offbeat style is very relatable. He compares food and personal finance and it works! For example, he says we eat more than we realise and we do the same with spending, which is so true.
Best advice: You don’t need to be a financial expert to become rich.
Additional Reading: Savings Or Paying That Debt Off: What Makes More Sense?
‘The total money makeover: A proven plan for financial fitness’ by Dave Ramsey
What it’s about: This book is more about handling your behaviour when it comes to money rather than talking about money itself. The author actually tries to tell you how to build an emergency fund, close your debts and start saving for your goals without taking loans. The book tries to tell you how most of us live in denial and we have to change that first if we want to be successful with our finances.
What’s unique: This book talks about our day-to-day lives and how our minds work. For instance, the author talks about how we keep trying to ape our neighbours. Most of our debt issues are a result of trying to match up to our peers and relatives. Also, the book advises the right steps such as start with a budget and pay off all your debts except your home, before starting to save.
Best advice: Go for ‘no debt’.
Additional Reading: Set Your Goals Before Investing In Mutual Funds
‘The Automatic Millionaire’ by David Bach
What it’s about: This book is about paying yourself back. Essentially, save for your future before you do anything with the money. And then, the compound interest will work its magic. The book says that you can start by paying yourself a small amount every day.
What’s unique: The author is very particular about setting aside money even before you start spending on your living expenses. Though it might sound tough, it will actually help you save a ton of money in the long-term. The author talks about a ‘latte’ factor. These are the small expenses that we make in life, like purchasing a latte, which we don’t think about. By cutting down on these expenses that aren’t really unnecessary, we can save quite a bit of money.
Best advice: Automatically pay yourself first. Automate the process of setting aside money for yourself.
Additional Reading: 7 Surprisingly Simple Ways To Become A Crorepati
Debt-free by 30 by Jason Anthony and Karl Cluck
What it’s about: If you are in your twenties and you are looking to get rid of a mountain of debt, then this book is for you. This book is a step-by-step guide to getting rid of debt. Of course, others can also read it and learn more about how to be debt-free. Even though the book was written way back in 2001, the concepts are still relevant today.
What’s unique: The authors have actually experienced debt issues and have written the book based on their own experiences. Hence, the book is practical and the tips doable. The authors tell you to prioritise your debt before you start paying it off, which is the right thing to do. They also tell you about how to handle situations when it looks like you are going to pile up some more debt again.
Best advice: Check the interest rates on your Credit Card accounts.
Additional Reading: 5 Precautions To Make Sure Your Personal Loan Does Not Become A Debt Trap
‘The money book for the young, fabulous and broke’ by Suze Orman
What it’s about: This book is an easy read because it is broken down into ten chapters and each chapter is broken down into smaller pieces. Also, many of the pieces are in question and answer form, making it relatable. Even though the book is targeted at young earners, the older ones can also read up to learn a few money management tips and tricks. The book starts with basics such as checking your Credit Score.
What’s unique: The book tries not be preachy and has plenty of examples thrown in so that the reader feels that it is a page out of someone’s life. For instance, advice such as not closing your older Credit Cards is good advice and is written as a question posed by someone. The book also doesn’t say you should stay away from Credit Cards. It advises smart management of those cards.
Best advice: Start paying a little extra on your Credit Cards, starting with the one with the highest interest rate.
Additional Reading: Debt Consolidation 101: Getting The Basics Right
‘The psychology of investing’ by John R. Nofsinger
What it’s about: Investors have a ton of emotions and most often their emotions overtake their rational thinking. This book tells you all about the psychology of investors. The book advises you on how to make decisions that help build wealth. It clears a number of misconceptions and biases people might have towards investing. The author has explained well the concept of how bias can influence investment decisions.
What’s unique: The author has drawn interesting parallels between investing and gambling. The book will appeal more to those who want to start their own businesses. It tells you how to make smart investing decisions though. The book is all about behaviour and if you are interested in how the human mind works, then go for this one.
Best advice: Common sense may actually lead you to make the wrong decisions.
Additional Reading: How Your Personal Credit Affects Your Business
Try some of these books and see if it makes a difference to your life and don’t forget to keep an eye on your expenses. Incorporate some of the tips and tricks into your life for a healthy financial life. If you need help, we are always around!