Many successful people will tell you that they have read a book that has changed their lives. In this look at many of the best personal finance books of 2022, there may be one or more that could help you change your financial life. The reading material is not always light, but it is important that you learn how to achieve your financial goals or even how to set financial goals realistically. Learning from a financial advisor is a good complement to learning from financial books.
The following five personal finance books could help you better understand your financial needs and teach you how to set and pursue goals. Here are the top five personal finance books in 2022:
1. “Why didn’t they teach me this in school?”
Have you ever wondered why they don’t teach personal finance in high school? Some colleges and universities require it, but not all. If you specialize in finance, you probably won’t take a course in personal finance unless you take it as an elective. Most finance majors focus on corporate finance or investments instead of personal finance principles.
Many students graduate from high school or college and have few ideas on how to manage all aspects of personal finance. As the author of this book, Cary Siegel, was writing what he thought were the guiding principles of personal finance for his children. He realized that his notes for his children had a wider audience and “Why didn’t they teach me in school?” I was born.
Most personal finance books and personal finance textbooks are complicated reading. Instead, this author focused on eight lessons on personal finance and developed a comprehensive, yet short and simple, book around them. He tied 99 principles to these eight lessons and ended up with an excellent book that is more qualitative than quantitative. He gives you the knowledge to base quantitative money management information on what you need to learn. Following his own principles, he allowed Siegel to retire at the age of 45.
This is a great book to read before diving into more complex and quantitative personal finance books.
2. “The millionaire next door: the surprising secret of America’s rich”
The “Millionaire Next Door” is a different kind of personal finance book. Originally written two decades ago and recently updated to reflect the 21st century, the book explains how most millionaires in the United States are not professional athletes or movie stars. They are your neighbors. They live next door, right next to you. You probably don’t know they are millionaires because they don’t brag about their money. They don’t drive fancy cars. They don’t live in amazing houses. They are like you and me, except that they have applied the principles of personal finance to their lives. Most didn’t even inherit the money. They saved and invested their savings by living below their means. They shopped for bargains. They invested as small amounts of money as they could. They chose their investments wisely and were long-term or buy and hold investors, not speculators. Their children probably didn’t even know their parents were millionaires.
The authors, Thomas J. Stanley and William D. Danko, have interviewed many millionaires. They found that most millionaires are the opposite of what we might typically expect. They are not high rollers. Instead, they lived their lives without being conspicuous consumers and sacrificing a little in the present to secure a financially free future.
3. “Smart Money: the personal finance plan to crush the debt”
I like this book because it gives you a step-by-step plan for planning your financial future, ditching what doesn’t work and learning what works. The author, Naseema McElroy, provides you with nine financial principles that help you learn how to get rid of debt and accumulate wealth. It helps you learn how to save money, correct mistakes you’ve made, and avoid making mistakes in the future. The book provides worksheets and checklists. There are dozens of tips and tricks on topics like debt management, investing, budgeting, and more.
The book uses simple English, with little financial jargon, to explain simple concepts that will put you on the right path. It is easy to read for people with no financial experience. Complex financial concepts are broken down and tied to actionable steps you can take. You will find a wealth of information in the author’s tips that will enable you to gain control of your debt and look towards a brighter financial future.
4. “I’ll teach you to be rich” (2nd ed.)
If you think you have to deprive yourself to be rich, think again. The author of the best-selling “I Will Teach You To Be Rich”, Ramit Sethi, shows you how to invest your money with the correct asset allocation so that you can spend without guilt. Discuss all kinds of possible financial problems you might have, like how to manage your student loans, how to start saving and investing, and more in this New York Times and Wall Street Journal bestseller. It is based on tools and systems that you can use to achieve your financial goals.
This second edition is timely and contains information on topics as diverse as robo-advisors and how to beat the banks. It’s a refreshing look at personal finance because Sethi is honest and outspoken and even shares his personal approach to achieving his financial goals. He discusses the concept of mindful spending, credit card optimization and how to prepare to invest. Throughout the book, he inserts stories of successful people and how they became that way, as well as narratives of those who used his system of him. This is a book you would like to pass on to others.
5. “Rich dad, poor dad”
This is the world’s # 1 best-selling personal finance book. 1 of all time. Instead of focusing on an area of finance such as debt management or investing, it is a general aspect that is still timely. It was originally written over 20 years ago and was recently updated for its 20th anniversary. Over the years, the author, Robert Kiyosaki, has written a number of personal finance books that all started with this book. There are 14 books in the series that cover everything from investments to credit cards, cash flow and a lot in between.
Kiyosaki begins with a personal story of how she had two fathers growing up. One was her real father. The other was the father of her best friend, a wealthy man with a knack for managing money. Her “other dad” taught him some simple personal finance lessons and learned for himself, following these lessons, how to make your money work for you instead of working for your money. He has learned that it is not necessary to be rich to achieve financial success.
The bottom line
Many people don’t like to think about money. It is inconvenient for many people. Often it’s because we don’t know all the rules of the road or how to manage our money. Schools don’t teach it. Sometimes parents don’t teach it. We emerge into adulthood and have little or no idea what personal finance means or encompasses. These personal finance books, some of the best of 2022, will help you set and achieve your financial goals. There are other good ones too, as this list will attest.
After reading these books, you may decide that you need to learn more about how to manage your money. If you do, it would be wise to work with a financial advisor. Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool puts you in touch with up to three financial advisors serving your area, and you can interview your batches of advisors for free to decide which one is right for you. If you are ready to find a consultant who can help you achieve your financial goals, start now.
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