5 Must Read Personal Finance Books for Managing Your Money

Below is a list of what I feel are the best books out there if you are interested in learning how to better manage your money and build wealth.  Feel free to leave a comment and let me know your thoughts after reading on of these books…

1. Think and Grow Rich by Napoleon Hill

 Napolean Hill's classic Think and Grow Rich has sold well over 100 Million copies so that should tell you something! Inspired by Andrew Carnegie's desire to learn the secrets of success, Hill embarked on a 20+ year project to interview 500 of the most successful millionaires in the world and distill their secrets on these pages. It is truly a one of a kind classic that should be in everyone's library.

This book has been updated to include advice from the likes of Bill Gates, Mary Kay Ash, Arnold Schwarzenegger, Ray Kroc, Michael Jordan, and others.

If you want to understand what sets successful and wealthy people apart from others, this book delivers!

2. Money – Master The Game by Tony Robbins

Money Master the Game Tony Robbins is an author, entrepreneur, philanthropist, and world-renowned life coach.  I recently finished reading Money Master the Game, a rather lengthy 700 page book on my ipad and I can wholeheartedly say this is a must read for anyone wanting to learn how to become financially independent. Robbins takes the reader through a 7 step process for taking control of your finances and creating a plan to achieve financial freedom.                                                                                                  Tony provides a lot of information about how the markets work, what investment options are available for individual investors, the advantages of working with a fiduciary advisor, and the importance of having a plan.

3. The Automatic Millionaire by David Bach

David Bach is the author of several best-selling books about building wealth including the #1 runaway best-selling The Automatic Millionaire.

Bach has a very simple formula, pay yourself first and take advantage of the power of compounding interest.  Paying yourself first involves setting up automatic transfers to an investment account before paying your bills.

The power of compounding interest is the single most important strategy to creating wealth. For example, if you start investing $250 per month at 25 years of age earning 8.5% interest, you would end up with almost $1,017,000 on your 65th birthday! Waiting until 35 to start reduces that amount to $415,613.

4. Your Money or Your Life

Most financial advice is based upon the premise that more is always better.  In Your Money or Your Life, authors Joe Dominguez and Vicki Robin explore how your relationship with money is reflected in the sense of satisfaction and fulfillment that you derive from your connection to your family, community, and planet.

Readers are challenged to examine their relationship with money in a nine step process which begins with closely looking at where your money is going and what you have to show for it. By analyzing what you are giving up in order to spend your life energy, you transform they way you view money.

Other topics covered in this book include how to reduce spending and maximize the value of your time, finding work-life balance, identifying the cross-over point when investment income covers your living expenses, and finally how to craft a more meaningful life once financial freedom is achieved.

5. Wealth by Virtue by Chad Gordon

Chad Gordon has created what I feel is the ultimate financial literacy reference book in Wealth by Virtue. Gordon starts with several founding principles that readers should keep in mind: 1) Understand Six Areas of Finance and be mindful of them 2) Embrace what you can't control, time, inflation, and market volatility and 3) Control what you can control, behavior, a long-term perspective, maintaining a financial plan, and choosing appropriate investments.

The book is broken down into the Six Areas of Finance: 1. Banking 2. Investments 3. Real Estate 4. Insurance 5. Legal Planning 6. Tax Planning and uses hundreds of graphs, tables, and real life case studies to show readers how to navigate a confusing landscape to make informed decisions regarding personal finances.

So what are you waiting for?  I challenge you to choose one of the above books or any book on financial literacy and read it.  Leave a comment and let me know what you learned!

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