7 Best Financial Books For Beginners (2023) And To Avoid
Last Updated on January 23, 2023 by Jordan Alexo
Are you feeling overwhelmed by your finances? Are you clueless when it comes to managing your money and investments? If so, you’re not alone.
Many people feel they need help with their personal finance. Fortunately, there are plenty of resources available that can help guide you toward financial success. One of the best resources out there is books.
Books are cheap and provide valuable insight into investing, budgeting, mindset, and more.
You get practical advice on managing your money to reach your financial goals more quickly while avoiding common pitfalls along the way.
In this post, you’ll discover seven of the best financial books for beginners in 2023 and ones you should avoid at all costs!
Why Should You Read Books About Personal Finance?
Reading books about personal finance can help you better understand your finances, develop sound financial habits, and create long-term wealth.
These books give you the tools to make smart decisions with your money and become financially literate. Plus, they offer great advice for someone new to investing or budgeting.
5 Benefits Of Reading Finance Books For Beginners
So what are the benefits you get from reading finance books? Let’s take a look.
1) Improved Your Knowledge
Understanding the basics of personal finance can help you make sound financial decisions.
2) Develop Good Money Habits
Reading books allows you to pick up good habits that will improve your financial future.
3) Boost Your Confidence Levels
Books provide practical advice and strategies for tackling various aspects of money management. This helps build confidence in your financial skills.
4) Save Money
Financial books provide tips and advice on how to save money in the long term.
5) Cheapest Form Of Education
People say that Elon Musk learned how to build rockets by reading books. So, don’t underestimate the power of books. They are the cheapest form of education you can get.
3 Pitfalls You Should Avoid With Finance Books?
I love books, but you should be careful about what you read. Here are three pitfalls to avoid when it comes to financing books:
1) Not Taking Action
I love to read books, but at the end of the day, if you don’t take action – it won’t do anything for you. You can read hundreds of books, but if you don’t create a plan to implement those books’ strategies and techniques, you won’t make any progress.
I like Jim Rohn’s recommendation to read ten pages of a book every day. This way, you are actively absorbing the knowledge and can break it down into digestible chunks that you can actually apply to your life.
Also, you have time to focus on a business or investment that can help you financially.
Often people who spend their time reading books do it as a form of procrastination. They are too scared or overwhelmed to take the necessary steps.
For instance, to build an online business, you should take courses, network with like-minded individuals, and create content to get your first customers.
The reading should be the cherry on top and not the cake itself.
2) The Law Of Attraction Is Crap
There are popular books, like “Think and Grow Rich” by Napoleon Hill, that I suggest people read with a grain of salt. This book provides excellent insight. After all, Napoleon Hill interviewed over 500 self-made millionaires.
But it’s easy to get caught up in the idea that you can “think and grow rich.” Yes, you need to change your mindset. If you think that “money is the root of all evil,” then you won’t manifest any abundance.
However, my biggest problem comes with books that teach the “law of attraction.”
Like you can sit on the sofa, not do anything and visualize having lots of money, and it will come to you. That’s plain BS! You need to take action and make smart decisions to succeed financially.
Over the years, I fell into the trap of doing written affirmations, visualization, and so on. I wasted hours daily with those activities and never saw any results.
Once again, you have to do the work. It’s better for you to spend those hours on your businesses or investments.
3) The Compound Effect of Lie
Then you have books such as “The Latte Factor” that teach the same old idiotic lie that if you save a few bucks on coffee every day and invest it – you’ll magically become a millionaire.
All these books always have the same story, “if you double a penny every day for 30 days,” it will be worth 5 million dollars.
Well, is there anyone out there doubling your pennies? I don’t think so. Most banks pay miserable interest, so forget about those stories.
The compound effect is real, but it takes years and decades of hard work and smart decisions to make it happen. I don’t think Robert Kiyosaki, or anyone else, became a millionaire with this strategy.
Besides, the compound effect is extremely risky, considering our volatile economic situation. For instance, most of us have seen our retirement accounts drop by 10-20% in the last months due to the pandemic.
Therefore, don’t blindly follow the advice of any book. Take your time to read, research and think about what you can do to save money in the long term.
7 Best Personal Finance Books
Now that we’ve got all that out of our way, let’s talk about the best books to read if you desire to learn more about personal finance.
1) The Millionaire Fastlane (MJ Demarco)
This is the first book I recommend you read about building wealth. MJ DeMarco explains in great detail how the average person can become a millionaire and retire early by following the principles of the Fastlane.
What I like about MJ Demarco is his no-BS approach to making money. He advocates for taking massive action and getting out of your comfort zone if you want to become successful. Furthermore, Demarco also dispels a lot of the mysticism surrounding the topic of wealth building.
I realized from him that my Amazon Kindle Publishing business wasn’t really business. Instead, I was working for Amazon in exchange for a tiny royalty.
To have a real business, you must have autonomy and control over the product. The Millionaire is a must-read book on this list. It will put you in the right mindset and provide actionable advice.
2) Rich Dad Poor Dad (Robert Kiyosaki)
This book is a classic and longest-running bestseller in the personal finance genre. With over 32 million copies sold, Rich Dad Poor Dad is undoubtedly one of the most impactful books published on finances and entrepreneurship.
In this book, Kiyosaki explains how our education system isn’t preparing people for financial success. He advocates investing in assets that generate passive income.
He takes you through his journey to becoming financially independent. He did this by investing in real estate and starting a business. You also learn about the power of passive income, asset protection, and financial freedom.
One of the pivotal points of this book is to help you differentiate between assets and liabilities. Although this may sound common sense, most people don’t know the difference. For instance, they think their car, house, and other items are assets when they are actually liabilities.
In short, anything that takes money out of your pocket is a liability, and anything that puts money into your pocket is an asset.
All the books from the Rich Dad Poor Dad series are great, but I recommend this one, as it’s the foundation of Robert Kiyosaki and will improve your financial literacy immensely.
3) 12 Pillars of Success (Jim Rohn)
Jim Rohn is one of my favorite authors, and I have spent countless hours listening to his audiobooks, reading his books, and watching his seminars on YouTube. He is down to earth and has a unique way of conveying his message.
In 12 Pillars of Success, Jim Rohn shares a story about a 40-year-old man struggling with his financial life. One day his car breaks down, and near a mansion, he encounters an older man who teaches him the twelve pillars of success.
The book is divided into 12 chapters, each focusing on different habits and mindsets essential for success, such as setting goals, taking action, having discipline, and more.
I’ve read this book multiple times and found something new each time. It’s a great resource to have in your library.
4) Hard Times Create Strong Men (Stefan Aarnio)
In a world that keeps telling men that the old values and traits of being a man are toxic and outdated. And that we should embrace being weak and passive. Stefan Aarnio breaks the narrative and provides an excellent resource for men to gain back their strength.
This is one of my top books when it comes to the development of mental fortitude. Aarnio talks about embracing life’s challenges and not running away from them or trying to escape them. He teaches the importance of constantly pushing forward and staying true to yourself regardless of the situation.
The book is split into four parts: the importance of strength, personal development, creating wealth, and relationships.
He also includes practical tips and exercises to help you overcome tough times while staying strong. This book is a must-read for any man looking to increase his confidence and become a better version of himself.
Now “Hard Times Create Strong Men” isn’t ideal for women. You can still read it or offer it to a man who needs guidance.
5) Cashflow Quadrant (Robert Kiyosaki)
Another great book from Robert Kiyosaki! Cashflow Quadrant explains the difference between the four income earners types: employees, self-employed, business owners, and investors.
Kiyosaki breaks down each type of earning style in detail to help you understand which quadrant is best for you and why. He talks about the difference in mindset, skillset, and level of risk associated with each one.
The book also dives deeper into understanding the difference between assets and liabilities and how to create multiple income streams.
This book is excellent if you want to understand better the different quadrant types and how to transition from one to another.
You can use this knowledge to help you change your attitude and see the skills you must learn to become financially free.
Once again, I love Robert Kiyosaki’s books, and this one is no exception. It’s a great resource if you want to achieve financial independence.
6) How To Win Friends And Influence People (Dale Carnegie)
This book by Dale Carnegie is a classic and the bestseller of all time. It has sold millions of copies since it was first published in 1936 and continues to be one of the most important books to read in your lifetime.
Now you may be thinking, what does this book have to do with personal finances? Well, the answer is everything.
You deal with people in every aspect of life, and learning to influence them positively can benefit your finances.
See, one of the major problems most people have is the inability to get along with others. Usually, they think they need to be the smartest person in the room and act like a know-it-all.
But it’s not true. Carnegie teaches us to be humble, listen to others, and be persuasive without being pushy or aggressive.
This book changed my life and the way I view relationships. I cannot recommend it enough if you want to increase your financial success. It teaches us how to create meaningful connections, which can help our economic growth.
7) Richest Man In Babylon (George Clason)
One of the oldest books on money and wealth is The Richest Man in Babylon by George Clason. It is impressive how financial knowledge over a century old can still apply today.
This book tells the story of a man who goes from rags to riches by learning the secrets of wealth from a wise older man. It’s set in ancient Babylon and is written as a series of parables. It provides seven simple cures to a lean purse simple money rules:
- Invest in yourself.
- Don’t spend more than you make.
- Save a part of your money and put it working for you.
- Increase your earning potential.
The Richest Man in Babylon is full of practical advice you can apply to your finances today. It’s an easy and enjoyable read that covers debt, budgeting, investing, and goal setting.
If you want to learn the main principles of creating wealth, then this book is a must-read. This book is a timeless classic that will remain indispensable to those seeking financial independence. Its principles for building personal wealth are rock-solid and just as relevant today as when it was first published.
There you have it, seven of the best books when it comes to personal finances. All these books will help you control your finances much better. Each book has its unique way of explaining money-related concepts and will make it easier for you to start building wealth.
- MJ Demarco’s The Millionaire Fastlane is a personal finance book best for understanding how to become financially free. This book comes packed with a full punch of no-bs that may hurt some feelings but will help you set a plan to achieve your financial goals.
- Robert Kiyosaki’s Rich Dad Poor Dad is essential if you want to learn how to make money fast.
- Jim Rohn’s 12 Pillars of Success is excellent to help you build essential foundations for financial success.
- Stefan Aarnio’s Hard Times Create Strong Men is an essential book for learning how to be successful during the most challenging times.
- Robert Kiyosaki’s Cashflow Quadrant will help you understand the differences between being an employee and a business owner.
- Dale Carnegie’s How to Win Friends and Influence People will teach you how to build relationships that can help your finances.
- And finally, George Clason’s The Richest Man in Babylon is full of timeless money advice you can apply to your finances today.
No matter what stage you are in life, these books will always help you understand personal finances. These books will improve your financial IQ allowing you to spend money smarter and build.
So, what are you waiting for? Pick one of these books and start investing in yourself today!