3 Books So Powerful, They Can Redesign Your Relationship with Money
Everyone should read these books in their twenties.
I’m ashamed to say that I never read a book on money or personal finance until my late twenties.
Why?
Because nobody around me suggested that I should read one. For a long period of my life, I never thought personal finance or such a thing existed.
Growing up, I observed people earning money every month, spending almost all of it, and sometimes, some lucky ones saving a little for the future — and that was it.
Money seemed to be a thing for those who earn it. Until you are earning money, you don’t have to know or worry about it. This was like a norm. So I grew up being completely ignorant about money and personal finance.
Nobody told me that financial planning is crucial for a financially secure life. And nobody told me that anyone can save a few bucks following the kakeibo method even when living paycheck to paycheck.
Back in my early twenties, I thought that money management was only necessary for people with great money, and I didn’t see myself in that group.
Oh boy! I was so wrong.
No matter how much you earn, you must have a good understanding of how money works and how you should deal with it. Otherwise, you are doomed for life.
Now the question is — How can you educate yourself about money?
It’s very simple: just read the books I am going to mention below. Trust me, they will empower you with new and exciting knowledge about money that you didn’t know before.
Not only that but they will also guide you to plan your finances for a financially secure life.
Let’s get started.
I. The book you’ll find in every corner of the world
I’m aware of the fact that many people think Rich Dad Poor Dad by Robert Kiyosaki is now an outdated book as there are countless alternatives floating in the air.
But I tell you — Rich Dad Poor Dad can be a great starting point for anyone in their 20s who wishes to see money from a different point of view. This book is based on Robert Kiyosaki’s personal journey and he tells it with great enthusiasm.
Interestingly, he grew up with two dads — one is his own father and the other is the father of his best friend.
In the book, he calls his father ‘poor dad’ as despite being highly educated and hardworking, his father struggled financially all throughout his life. On the other hand, he refers to his best friend’s father as ‘rich dad’ as he wasn’t highly educated yet financially sound and taught Kiyosaki tons of valuable life lessons about money, investing, and business.
I bet you will love this book because while reading it, you will be able to relate it to your own personal experiences and see where things went wrong for you.
A few of my favorite quotes from Rich Dad Poor Dad
“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.”
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.”
“I am concerned that too many people are focused too much on money and not on their greatest wealth, which is their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer through the changes. If they think money will solve the problems, I am afraid those people will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”
“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.”
“Excessive fear and self-doubt that were the greatest detractors of personal genius.”
How Rich Dad Poor Dad can help you
- This book encourages you to think beyond traditional financial approaches and helps you embrace the ideas of assets to generate passive income.
- It also gives you advice on budgeting, reducing expenses, and investing.
- Finally, this book can act as a great source of motivation for you to pursue financial independence and create a life of abundance and freedom.
Rich Dad Poor Dad is a kind of go-to book for anyone who is about to step into the exciting world of personal finance. It’s full of new wisdom and fantastic stories.
Don’t miss it.
## Click this link to get yourself a copy of Rich Dad Poor Dad (affiliate link)
II. The book where money and psychology go hand in hand
Have I told you The Psychology of Money by Morgan Housel isn’t just a book, it’s a journey you take to understand what money is and how your mind perceives this to shape your world?
If anyone asks me to recommend just one book that can explain money in a broader context, I would recommend this book for sure.
This is a hell of a book on money.
Morgan Housel just nailed it.
You wouldn’t believe that I read this book just a few months ago.
In the book, Morgan explores the role that psychology plays in your day-to-day financial decision-making. He tells you to build good financial habits and shows the ways how you can do so.
And he talks so much about long-term investment and the role of luck in your pursuit of financial freedom.
According to Morgan, your willingness to learn from your mistakes and adapt to changing circumstances is crucial for your financial success
Countless real-life examples and anecdotes are dotted everywhere in the book and while reading, it gives you a fantastic experience. It makes complex things easier for you to understand.
I’ve said it many times and I’m saying it now — after reading The Psychology of Money, you will see money through an entirely different lens for sure.
A Few of my favorite quotes from The Psychology of Money
“Saving is a gap between your ego and your income.”
“Independence, to me, doesn’t mean you’ll stop working. It means you only do the work you like with people you like at the times you want for as long as you want.”
“The ability to do what you want, when you want, with who you want, for as long as you want to, is priceless. It is the highest dividend money pays.”
“Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car (or $100,000 more in debt). That’s all you know about them.”
“The highest form of wealth is the ability to wake up every morning and say, ‘I can do whatever I want today.”
“Your personal experiences with money make up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works.”
How The Psychology of Money can help you
- This book explains what you think about money and why you think what you think — and then debunks the biases and misconceptions you have about money.
- It tells you about the role of luck and how you can manage risk while investing. It also helps you understand the value of long-term investing and the power of compounding that people often overlook.
- Overall, this book offers you a more holistic approach to personal finance. That means it tells you to take your emotional and psychological factors into account while making any financial decision.
The Psychology of Money is a very powerful book that can redesign your mind and help you make better financial decisions in your daily life.
You should read and repeat this book at least three times (if not more).
## Click this link to get yourself a copy of The Psychology of Money (affiliate link)
III. The book that can teach you to be rich for real
Unless you’re living in a remote village in Africa, you already know who Ramit Sethi is. Fortune Magazine described him as the new finance guru on the block in 2011 for his New York Times best-selling book “I Will Teach You to Be Rich” published in 2009.
If you are a young adult in your 20s or 30s, I Will Teach You to Be Rich can teach you tons of things to get your finances in order and thus build your wealth over time.
This book emphasizes making incremental improvements rather than trying to make dramatic changes all at once. And what I like about Ramit’s book is that he literally shows you how to do what he says in the book.
If you are to contact your bank to reduce or waive your credit card-related fees which you think you shouldn’t pay, Ramit, in his book, shows you how to email them and exactly what to say.
This book is really something else.
I Will Teach You to Be Rich — as Rmit Sethi says — actually a six-week plan to help you set six things to be on the track of getting rich.
Throughout the book, he uses a conversational and relatable tone to explain financial concepts and provide practical advice. And of course, there are real-world examples and case studies to illustrate his points and make the book more engaging.
A few of my favorite quotes from I Will Teach You to Be Rich
“Sometimes the most advanced thing you can do is the basics, consistently.”
“Cynics don’t want results; they want an excuse to not take action. Ironically, even if they win their own manufactured argument, they lose overall, because they’re stuck in a prison of their mind.”
“My friend Jim once called to tell me that he’d gotten a raise at work. On the same day, he moved into a smaller apartment. Why? Because he doesn’t care very much about where he lives, but he loves spending money on camping and biking. That’s called conscious spending.”
“In the end, managing your finances well is a lot like developing a strong personal productivity system: You keep track of everything without making it your full-time job; you set goals; you break them down into small bite-size tasks; you save yourself time by automating manual work; and you spend your time and brainpower focusing on the big picture. That’s what I try to do with my time and money.”
“When it comes to your Rich Life, if you’re counting pennies or calculating a sandwich as being worth $90,000, you’ve taken a very wrong turn somewhere.”
How I Will Teach You to Be Rich can help you
- This book helps you set your financial goals and create a budget. It also tells you how to automate your finances.
- It talks about investing in index funds and other low-cost options and shows how to save for retirement and other long-term goals
- This book teaches you the art of negotiating salaries and earning more money. It also encourages you to have a conscious spending plan to prioritize spending.
This is really a non-bullshit, highly actionable book that can kickstart your journey toward riches through incremental improvements.
Apply Ramit’s teachings and see for yourself.
## Click this link to get yourself a copy of I Will Teach You to Be Rich (affiliate link)
Recap
Remember these three names and start your journey toward financial freedom.
- Rich Dad Poor Dad by Robert Kiyosaki
- The Psychology of Money by Morgan Housel
- I Will Teach You to Be Rich by Ramit Sethi
I am sure these books will help you understand money from different perspectives and also guide you to reshape your finances for a financially better and more secure future.
If you are a hungry soul wanting to read more about money and finances, I would highly recommend you check out The Total Money Makeover by Dave Ramsey, The Intelligent Investor by Benjamin Graham, The Richest Man In Babylon by George S. Clason, and The Millionaire Next Door by Thomas J. Stanley and William D. Danko.
(Please note that the book links mentioned in this post are affiliate links. If you choose to purchase these books through these links, it will help me earn a tiny amount of commission — at no extra cost to you. Thanks.)
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