An MBA is not required to manage money! The correct book is required.
The common reason most people don’t deal with personal finance is that it seems too confusing, too complicated and feels like a burden because of the guilt they feel for past mistakes.
The reality of life is that good money management is not a maths skill. It’s a matter of grasping some basic concepts and creating some basic systems.
There’s a book that can teach you what most people take decades to learn in a weekend.
This is a beginner’s list of personal finance books that are easy to read, very practical, and make a difference in your finances.
1. Rich Dad Poor Dad by Robert Kiyosaki
What It Teaches
The simple distinction between assets and liabilities, and why a lot of people end up poor, even though they work diligently.
Assets deposit money in your pocket. Money is deducted from liabilities. If your house is bleeding your income, it’s not an asset!
Best For
Newbies who must change their own perspective on money before tactics.
For 30 days, keep a record of where your money is going. Clearly distinguish between what is an asset and what is a liability.
2. The Total Money Makeover by Dave Ramsey
What It Teaches
No matter where you’re starting, there’s a step-by-step plan to get out of debt, build wealth, and more.
The 7 Baby Steps – an effective order of steps from emergency fund to wealth building.
Best For
The debt-ridden who require a no-nonsense course of action.
Begin with the smallest debt – start small to get small wins and momentum.
3. I Will Teach You to Be Rich by Ramit Sethi
What It Teaches
How to Take 1 Hour a Month to Manage Finances, Not Daily Stress.
Optimize accounts, automate bills, eliminate fees, invest automatically… what a 6-week program.
Best For
Young professionals (20s-30s) seeking wealth with minimal sacrifice to lifestyle.
Automate your money: Paycheck to savings to bills to investments. Get rid of willpower.
4. Your Money or Your Life by Vicki Robin & Joe Dominguez
What It Teaches
Money isn’t just dollars – it’s your life energy. All trades are a barter for items.
Determine your after-tax, commute and work expense real hourly wage. Next, ask the question: “Is this purchase worth X hours of my life?”
Best For
Consumers who are not happy with consumerism and wish to spend according to values.
Record all expenditures for 1 month. Consider the question, “Did this satisfy or did it fulfill?
5. The Simple Path to Wealth by JL Collins
What It Teaches
Investing doesn’t have to be difficult. The formula for making money is index funds + time.
Purchase low-cost index mutual funds (VTSAX), and continue to purchase them without the ups and downs of the market, even if the market is down and you will be rich when you retire.
Best For
Investors who are intimidated and looking for a simple and tested investing strategy.
Open an affordable investment account (Vanguard, Fidelity) and organize regular monthly investments.
6. The Psychology of Money by Morgan Housel
What It Teaches
It’s not about intelligence or knowledge, it’s about behavior and temperament – being financially successful.
Riches are not what you see. The vehicle you missed out on. The upgrade that you missed. The real riches are concealed.
Best For
Individuals who are knowledgeable about money but not emotionally familiar with it and don’t know how to compare.
Set a definition of “enough” for yourself. Record the number at which more money will not help your life get better.
It is true to human nature. Accepts that the making of money decisions is an emotional process, not a logical one.
7. The Richest Man in Babylon by George S. Clason
What It Teaches
Classes from the old parables in the ancient city of Babylon on timeless wealth principles.
Save 10% of your income first – save before you pay any other bills.
Best For
Individuals who prefer learning by story over spreadsheets.
Have 10% of each paycheck go to your savings account the day you receive payment.
Written in 1926; remains relevant today. Evidence that wealth concepts are constant across technology.
8. Broke Millennial by Erin Lowry
What It Teaches
Money in the 20s and 30s, debt, budgeting, investing and money talk.
It is possible to be broke, but still have wealth. Begin with what you have, where you are.
Best For
The financial insecurity and lack of direction of Millennials and Gen Z are evident.
Make a “spending plan” rather than a limiting budget. Use guilt-free funds to do things that you enjoy.
9. The Automatic Millionaire by David Bach
What It Teaches
There is no need to be disciplined or disciplinarian to create wealth. You need automation.
Pay yourself first – automatically. Install systems for saving and investing without thinking.
Best For
Individuals who cannot be consistent or who procrastinate.
Make a 1% increase in your 401(k) contribution today. It’s not something you have to pay attention to, but something you will thank yourself for later.
10. Get Good with Money by Tiffany Aliche (The Budgetnista)
What It Teaches
A 10-step program to financial wholeness – budgeting to investing to building wealth.
Financial wellness is more than just about the money in the bank! It’s about making your life go with your values and about peace of mind.
Best For
Women and people of color are looking for culturally relevant financial advice.
Do a “spending audit” for 30 days to get an understanding of spending habits.
How to Choose Your First Book
If You’re in Debt:
Start with The Total Money Makeover by Dave Ramsey
If You Want to Automate Everything:
Start with I Will Teach You to Be Rich by Ramit Sethi
If You’re Intimidated by Investing:
Start with The Simple Path to Wealth by JL Collins
If You Need a Mindset Shift:
Start with Rich Dad Poor Dad by Robert Kiyosaki
If You Struggle with Emotional Spending:
Start with The Psychology of Money by Morgan Housel
If You’re in Your 20s or 30s:
Start with Broke Millennial by Erin Lowry
The Financial System Beyond Books
The first step is to read. Successful organizational change requires building systems.
At Ask Caliope, we share financial knowledge into financial action.