These 7 Books Reshaped My Beliefs Around Money

And helped me build the life I desire

A few years back, I opened my Wells Fargo app to find yet another overdraft charge.

Once again, I had spent more money than I had available on my debit card. To add insult to injury, Wells Fargo charged me a penalty of $35.

Since then, I’ve been able to save up over $100,000. This hasn’t been easy.

I’ve had to plan carefully and work hard.

But it wasn’t impossible. Yes, I had to delay gratification.

But I wasn’t living like a miser who never left the house.

By reading these books, I was able to escape my paycheck-to-paycheck lifestyle.

I Will Teach You to Be Rich by Ramit Sethi

Originally published in 2009, this is one of the more recent books. I enjoyed how approachable this book was. It didn’t get too far into the nitty-gritty but focused more on the high-level, practical principles that can help you achieve your financial goals.

After reading this book, I tried to automate all aspects of my personal finance. I set up my expenses to be on auto-pay. I then spent less mental energy remembering to pay my bills manually each month. I became confident in the fact that my finances were moving in the right direction without my needing to take action.

The Psychology of Money by Morgan Housel

Morgan Housel discusses finance with a focus on psychology and emotions. It’s an interesting look at how irrational humans can be when it comes to money.

Reading this helped me gain a better understanding of my own biases and behaviors. I’d rather be aware of these limitations and take actions to mitigate them. If you pretend that you don’t have biases and act irrationally when it comes to money, you’ll be worse off.

The Millionaire Next Door by Thomas J. Stanley and William D. Danko

I loved this read. The authors surveyed more than 500 millionaires to try to better understand them and their lifestyles. They discovered that most millionaires live well below their means and avoid lavish lifestyles. This is far different from the image that the media portrays.

The authors distinguished between two archetypes: PAWs and UAWs. PAWs are “prodigious accumulators of wealth.” UAWs are “under accumulators of wealth.”

PAWs save money and grow wealth incredibly well. They may not make a ton of money, but their net worths are high.

UAWs, on the other hand, may earn high incomes but don’t accumulate wealth. They spend their money without thought and don’t invest in their future.

There are plenty of examples of UAWs in real life. Think of high-level executives, doctors, or lawyers who earn more than $500,000 a year. They may spend lots of that money making it look like they have a ton of money.

These status games result in them never actually getting ahead financially. Until they accumulate enough wealth, they’ll have to keep working.

The Richest Man in Babylon by George S. Clason

This one was originally published in 1926. It’s a timeless read that teaches readers about personal finance through a series of parables. It keeps things basic and illustrates the power of compounding interest.

I enjoyed the use of metaphors and stories to illustrate financial principles. The key themes were to save a portion of your income, avoid debt, and invest wisely. By following these principles and staying patient, you can amass significant wealth.

Rich Dad Poor Dad by Robert T. Kiyosaki

Robert Kiyosaki illustrates financial principles by discussing two dads in his life: his own dad and his friend’s dad. His biological father, the “poor dad,” was a teacher who struggled to get ahead financially. His friend’s father, the “rich dad,” was a successful businessman.

Kiyosaki shares many lessons about money and stresses the importance of financial education. One of the key takeaways for me was that rich people invest in assets while poor people invest in liabilities.

According to Kiyosaki, an asset is something that puts money in your pocket while a liability is something that takes money out of your pocket.

The Total Money Makeover by Dave Ramsey

Ramsey shares a straightforward approach to personal finance. Throughout the book, Ramsey encourages readers to avoid taking on debt, build an emergency fund, and create budgets.

Ramsey takes a strong stance against debt. Avoiding debt is good in general, but there are times when taking on debt makes sense.

I didn’t follow Ramsey’s guidance to a tee. I did, however, create an emergency fund for myself with 3–6 months worth of living expenses. This saved me when I got laid off. Knowing that I had an extra 3–6 months of runway drastically reduced the stress I felt when I got laid off.

The Little Book of Common Sense Investing by John C. Bogle

John Bogle founded Vanguard, an investment management company. In this short read, Bogle discusses the benefits of index fund investing. He argues against trying to beat the market and advises you to put your money into low-cost index funds.

The simplicity of Bogle’s ideas resonates with me. Keep investing simple and focus on your long-term goals. Historically, the market has risen over time.

The world of personal finance can be complicated.

But it doesn’t need to be. These 7 books helped me find a signal in a sea of noise.

If you’re looking to increase your financial literacy and set yourself up for an abundant future, I’d recommend reading these books.

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