He reached for a bunch of manuals and papers, looked at the small crowd, and said: “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest.”
That day Warren Buffet, one of the highest regarded investors of all time, might have changed the lives of a few young adults who were listening to his speech. He and several other high profile figures in history, from Walt Disney to Descartes, advocate passionately for books.
But if books are such a treasure and can teach us so much, what would be a few that could help you improve your financial literacy? Here are some suggestions that you might like:
Rich Dad Poor Dad
First released over 20 years ago, it’s one of the best-selling personal finance books ever, with over 32 million copies sold in 40 languages. It’s the tale of how the author’s dad contrasted the father of his friend with different visions over money. They achieved different financial success levels, and Robert Kiyosaki uses this history to explain the lessons learned that separate wealthy families’ financial behaviors.
Broke Millennial: Stop Scraping By and Get Your Financial Life Together
‘Broke Millennial’ is a book for beginners that teaches the basics of personal finance, with young and refreshing language use to resonate with young adults. The writer Erin Lowry covers basic concepts of personal finance but goes beyond, exploring the mental aspects behind the financial decisions we have to take every day.
The Psychology of Money: Timeless lessons on wealth, greed, and happiness
Speaking of mental aspects, this book dives deeper and puts psychology at the center of it all. Author Morgan Housel ditches the typical numbers approach to finance and opts for a real-world approach.
“In the real world, people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together.”
The 4-Hour Work Week: Escape the 9-5, Live Anywhere and Join the New Rich
A classic of the 2000s, “The 4-Hour” goes granular in teaching the reader how to open up their own online business and sell stuff with the minimum number of hours put up every day. But it goes way beyond that. Even if you don’t plan to become an entrepreneur by the end of your reading, you will have learned critical lessons on independence, proactivity, success, efficiency, and problem-solving. Not only that, but you’ll get a completely new outlook on work in general.
The Total Money Makeover: A Proven Plan for Financial Fitness
A widely popular radio figure in the United States, Dave Ramsey is the author of 5 New York Times best-selling books, and this one is no different. In the book, he advocates for hard work, paying off debt, and taking baby steps towards a robust financial future. Its behavior tone mixed with basic lessons resonates with people of all ages, especially those who have debt.
So, which book will be your first financial read for 2021?