It’s easy to learn more about the world by picking up a book and reading.
The more you know about money, the more you’ll be able to make smart decisions and build good habits. Financial literacy can make or break your chances of making money.
These are some of our favorite books about money. Check your library soon and add these seven books to your reading list.
If You Need to Adjust Your Money Mindset…
Some of these books break down money myths, show you how to think differently, and show you different ways to do things like spend money or save money.
If you want to change how you think about money and how you use it, pick up one of these books.
Stop Acting Rich: …And Start Living Like A Real Millionaire
You might have heard of Thomas Stanley, who wrote The Millionaire Next Door. If you’re interested in how most millionaires live, this is another good book to read. Most of them don’t live in McMansions, but in our own neighborhoods instead.
That’s how they made money: by being thrifty and not buying things that were unnecessary, like a lot of money for a house that no one wants.
Stop acting like you have a lot of money and start acting like you
If you like the first one, then this one is even better. It goes into much more detail about the real habits and preferences of people who have a lot of money. It also makes the point that if you want to be a millionaire, you can’t spend money to look rich.
The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money
You might know Carl Richards from the New York Times’ “Sketch Guy” column. If you like Carl’s simple way of talking about complicated things, Behavior Gapis is the book you should start reading with first.
This book looks at how our emotions can change our behavior and make us make bad decisions about how we spend our money. This can happen even to people who are otherwise very smart about money.
When it comes to money, it also gives you ways to stay calm and rational. This way, you can avoid big mistakes and take the slow and steady path to financial success.
If You Want to Learn More About Investing…
You shouldn’t invest your money in anything you don’t know about, because you could lose it. You might be scratching your head and feeling like you don’t know anything about financial markets, but these books will help you learn how to move forward and grow your money:
The Intelligent Investor: The Definitive Book on Value Investing
The Intelligent Investor was written a long time ago, but a lot of the advice in it still applies to today’s financial markets and is worth reading. As far as I know, Warren Buffett thinks it’s the best book on investing ever written!
Among other things, financial journalist Jason Zweig has updated Benjamin Graham’s original instructions or drawn comparisons to the way people invest in the present day.
If you want to get rich quickly, don’t invest in gimmicky, quick-and-easy schemes. That’s what the book talks about.
One Up On Wall Street: How To Use What You Already Know To Make Money In The Market
Peter Lynch is known as one of the best mutual fund managers of all time. In One Up on Wall Street, he talks about how average investors can use their own advantages to do better than the active managers who trade all the time.
His main ideas? Stick with what you know and invest for the long run. This is what you should do.
A Random Walk Down Wall Street: The Time-tested Strategy for Successful Investing
He gives a simple, common-sense guide to investing in “A Random Walk Down Wall Street.”
Malkiel also talks about some of the biggest mistakes that most people make when they invest, like market timing or stock picking, and explains why and how to avoid making those mistakes with your own investments.
If this book is too hard for you to read, try a lighter and easier-to-read one instead.
Instead of The Random Walk Guide to Investing: Ten Rules for Financial Success, you should read this book instead.
If You’re Just Getting Started…
Broke Millennial: Stop Scraping By and Get Your Financial Life Together
In the beginning, Erin Lowry wrote about how she lived on a small salary in the middle of New York City. Eventually, she turned her blog into a book that serves as a guide for 20- and 30-year-olds who want to save money.
When you read Broke Millennial, you get Lowry’s youthful perspective and straight talk in a way that’s both fun to read and easy to understand.
People who are thinking about getting their money in order and getting their financial life back on track should start reading this book right away. It’s both educational and fun, and it will help you get your money in order.
Personal Finance for Dummies
No, it’s not. We’re really into this one! This book is great if you don’t know how money works, how finance is done, or where to start to learn more about it.
It’s a good place to start if you want to learn how to speak and think about personal finance. It also gives readers a good foundation of basic facts.
When you know these basics, you’re better able to add in more complicated ideas and have more in-depth conversations about money.
This is a good thing. Lessons on wealth, greed, and happiness that will never go out of style: “The Psychology of Money”
This book does a great job of putting real-life stories together into 20 short chapters that explain why we do things or look at money, investing, and habits in different ways. This should be a part of any class on personal finance that you take. “Less ego, more wealth.” That’s my favorite quote from the book. You save money to fill the space between your ego and your income. “Wealth is what you don’t see,”
What’s Next After Developing Financial Literacy?
A lot of these resources are very important and good to read. There are people who can help you learn more about your money, which will help you manage and use your money better to reach your goals.
To build the wealth you want, it’s hard to make a plan and stick with it over time. Books are great, but they don’t hold you to account or answer any more questions you have after you read them.
For that, you might want someone you can talk to and get advice from that is specific to your life and your finances.
Having a financial advisor as a partner can help you get where you want to go in your money life. As long as a few things are checked:
They should give you full financial planning as a service, not just as a “bonus” if you invest with them, but as a separate thing that they offer.
They should always act as your guardian.
They should charge a fee only.
A CFP®, or CERTIFIED FINANCIAL PLANNNERTM, should be their job.
Learn as much as you can on your own, but don’t feel like you have to plan and invest in a bubble. You should look for a financial planner who meets all of the standards above and knows and understands your unique goals.
It is important to note that the opinions expressed in this material are for general information only and are not meant to provide specific advice or recommendations for any one person. To figure out which investments might be right for you, talk to your financial advisor before you start investing. There is no way to predict how well you will do in the future based on what you have done in the past.