Financial literacy books – We have a list of the 25 best financial literacy books along with their author and a short description of these best financial literacy books.
Just as education gives us the ability to understand, in the same way, financial education gives us the understanding to understand financial products in the right way so that we can sharpen our financial intelligence by using financial resources effectively.
Financial Literacy books are the best option to improve financial literacy and enhance the ability to apply financial resources or components like budgeting, saving, credit, investment, and protection.
To the guideline of the Financial Literacy and Education Commission, there are five key components of financial literacy Earn, Spend, Save and Invest, Borrow and Protect.
Why should one read financial literacy books? The honest answer is for own lifelong financial well-being along with knowing about what is financial literacy and why it is important.
Table of Contents
List of 25 Best Financial Literacy Books
There is a list of the 25 best financial literacy books, these books are really amazing and can the change mindset of a normal person like financially educated peoples.
Short Description of Best Financial Literacy Books
Books can change both the future and the thinking of a person. If you are in a habit of reading books then you will know very well.
How books fill our life with the light of knowledge, similarly reading financial books increases our financial skills and knowledge.
Rich Dad Poor Dad by Robert T. Kiyosaki
Rich Dad Poor Dad is one of the best personal finance books, In this book, Robert T. Kiyosaki shares his growing up learning from his friend’s father and his father.
In this book lesson, Robert clarifies the difference between Assets and liabilities. Common man always thinks all his valuable things are assets but they are mistaken.
One should read this book to understand financial literacy, it took a boom in my life to learn more about finance.
I personally recommended, starting your financial journey with this book because it is easy to understand and the author explains with examples along with amazing stories.
each youngster should read this book to understand the importance of real finance in their life.
The Richest Man In Babylon by George Clason
This is one of the amazing financial literacy books, in this book George Clason explains saving at least 10 percent of everything you earn and never confusing your necessary expenses with your desires along with 7 simple golden rules of money which lead to financial freedom.
The author also explains how can you invest your money so that this money will works for your lifetime, you do not need to work for money.
Why Didn’t They Teach Me This in School? by Cary Siegel
Cary Siegel is a retired business executive and this book was initially intended for his children when he realized they did not learn important personal finance principles before entering the real world after school.
He divides this book into 99 principles and eight money chapters that one should learn in high school. This book is easy to read in simple words.
The Psychology of Money by Morgan Housel
Morgan Housel teaches in this book the Psychology of money how you can create a better relationship with money and make smarter financial decisions. Author Morgan housel explains how your psychology can work for and against you.
The book The Psychology of Money is written by Morgan Housel, in this book the author explains the art of handling money the right way.
It is said that sometimes a very intelligent and financially literate person in the matter of money also loses money and at the same time, even a normal person can become rich with money.
To understand the behavior of money, the author explains to the readers a very beautiful story that how people’s behavior toward money makes them poor or rich.
The author tells the story that at a young age, a boy who was a technology executive created and sold many companies.
Due to this a lot of money came to him, but his foolish behavior towards money made him a pauper one day, he used to carry bundles of notes everywhere with him and used to be fond of being rich and a lot of money was spent on alcohol and other things. Foolishly lost in games.
Psychology plays a vital role in everyone’s life, The Psychology of money is the best book to understand how our psychology works for us and against us. Everyone must read this book.
Think And Grow Rich by Napolean Hill
Think and Grow Rich. This book is written by Napoleon Hill, an American author, he is one of the great writers of success. In this book, the author tells you the way to becoming rich.
Let us tell you that becoming rich does not mean only earning wealth, but it also means that in whatever field you want to work if you implement these 13 steps in your life in the right way. You will definitely get successful.
The book starts with some strong ideas, if you also have some great ideas, then you can do anything. Anything can be done by thinking, if our prankster can think something then he can do it too If you persevere then you will definitely get success in your goal.
The Intelligent Investor: The Definitive Book on Value Investing by Benjamin Graham and Jason Zweig
The book The Intelligent Investor was written by Warren Buffett’s mentor Benjamin Graham, All great investors, this book is also called the Bible of Investing.
In this book, the author has told about some important principles of investing, which by implementing in his life, Warren Buffett, who is the world’s number one investor, invests today.
In this book the author discusses some theories like aggressive and defensive investing, second very interesting concept given by Benjamin Graham in this book is the theory of Mr. Market.
Benjamin Graham tells about these three types of investors, number one defensive investor, number 2 aggressive investor and number 3 enterprise investor.
In this book there are other principles like margin of safety and all these principles in themselves play a huge role for a great investor.
The Theory of Investment Value by John Burr Williams
In this book, the author provides a theoretical framework for investors to determine the intrinsic value of stocks based on their dividends.
Just as Benjamin Graham is considered the father of value investing, John Burr Williams is considered the ancestor of the dividend investor.
The author lays out four key principles in this book Focus on Dividends Not Earnings, Investing vs. Speculation, Lasting influence and on Government, Socialism and Taxes.
This lesson is more important than ever in this age of growing and stagnant and low investment returns.
The Four Pillars of Investing by William J. Bernstein
In this book, the author explains how investors can build a strong portfolio by learning the four essentials of investing, even without a financial advisor.
The four pillars of successful investing have been described by the author.
1- Investment theory – which states that risk and return are different sides of the same coin.
2- Investment History – The author has divided investment knowledge into four major areas: Theory, History, Psychological and Investment Industry Practices Out of which historical knowledge can prove to be the most important for success in finance.
3- Investment Psychology- This tells that if you are not disciplined then you are your own worst enemy.
4- Investment Business – Brokers are not your friends and also the interests of fund companies are very different from yours.
Security Analysis by Benjamin Graham and David Dodd
The book Security Analysis is a famous book written by Benjamin Graham and David Dodd, in fact, security analysis is a process of deciding which securities will be a good investment, which can keep the principal safe and return on it.
The authors point out that any investment that does not satisfy these two conditions is not an investment but speculation.
The book Security Analysis, first published in 1934, has been in print ever since. Investment legend Warren Buffett also calls this book the Bible of Investment.
The importance of this book can be seen in the fact that it provides security analysis advice to all investors.
Psychology of Investing by John R. Nofsinger
In the book, the author does not pretend to know everything, in the book author Nofsinger writes that investors should use the psychology of investing.
Investors should adopt a sound financial strategy and avoid common investment mistakes as well as be patient in times of uncertainty and take advantage of practical finance opportunities in financial markets with their financial strategy
How Much Money Do I Need to Retire? by Todd R. Tresidder
How much money do I need to retire? In this book, the author provides practical guides and a step-by-step plan to calculate your retirement needs with confidence.
How much money will be required for retirement?
The author takes you through the scientific aspect of modern retirement plans. As a successful guide, the book provides step-by-step instructions on how to correctly calculate the amount you need to retire so that you can ensure, How much money you need to retire?
Stop Acting Rich by Thomas J. Stanley
This book is a best-selling book which makes the author also a best-selling author, in this book the author explains the difference between being rich and acting rich.
The author points out that everything you think you’re rich about is wrong. Thus the author rightly advises people to rethink their spending patterns and avoid getting bogged down in symbolism.
The Richest Engineer by Abhishek Kumar
“The Richest Engineer” is a book about the life and career of Abhishek Kumar, an engineer who became extremely successful in his field.
The book provides an in-depth look at the strategies and mindset that he used to achieve his success and offers advice and inspiration for others who want to follow in his footsteps.
It also covers his journey from being an engineer to becoming a successful entrepreneur, highlighting the key decisions and actions that led to his success.
Overall, the book is designed to provide readers with practical and actionable insights that can help them achieve their own goals and aspirations.
From The Rat Race to Financial Freedom by Manoj Arora
Author Manoj Arora is an engineer by profession and a gold medallist from Aligarh Muslim University, in the book the author talks about creating a road map for achieving financial independence.
This book written by a common man for the common man will help you lead a financially independent and conscious life, the author also explains that it doesn’t matter how much you earn, what matters is how much you earn, You can save and invest wisely.
The secret of financial freedom is to learn the basic concepts of planning well and adopt the right approach, Everyone around us is caught in the rat race.
If you have resolved to take control of your finances and follow it by making a personal financial plan, then you have started moving from the rat race to financial freedom.
The Simple Path to Wealth: Your road map to financial independence and a rich by J L Collins
The Simple Path to Wealth is one of the best financial books out of all the financial books ever written.
The author guides you to move towards financial freedom in the book How You Can Buy Your Financial Freedom.
Further in the book, the author writes that how you can become rich and take control of your own finances, this book can help you achieve financial freedom.
One Up On Wall Street by Peter Lynch
This book is written by Peter Lynch, it is the most practical investment book I have read so far. The author has given three sections in this book.
The first one is an introduction to investment and how we can develop the mindset of a good investor.
In the Second section author give details views on step by step process to select a stock and in the third section, the author discusses the long-term view for investing and portfolio.
Whether you are investing in stocks or thinking of becoming an investor, you must read this book. Peter Lynch has been the manager of a large fund and has written this book based on his experience.
The Millionaire Next Door by Thomas Stanley and William Danko
In this book, the author shows you the simple spending and saving habits that lead to more cash in the bank. While most people earn in their life, this book helps you avoid critical mistakes on the way to financial freedom.
The author recommends using three rules to improve your chances of getting a million dollars in the bank.
- Start saving honestly and responsibly from the moment you start earning more than you need to live for the first time.
- If your target capital is falling short, then calculate it using a simple formula.
- Avoid financial mistakes and increase your financial knowledge to reach your goals.
Your Money or Your Life by Dominguez and Robin
In this book, the author advises following 9 principles to attain financial freedom, “Your Money Your Life” is full of examples, stories and experiences of many people.
Those who have followed the Indore step-by-step program or principles in their journey to financial freedom. The author suggests asking yourself questions.
- do you have enough money?
- Are you spending enough time with family and friends?
- Have you come home from your job for the rest of your life?
- Do you have time to participate in things that you think are worthwhile?
- If you were fired, would you see this as an opportunity?
- Are you satisfied with your contribution to the world?
- Are you at peace with money?
- Does your work reflect your values?
- Do you have enough savings to cover six months of normal living expenses?
- Is your life perfect? Do all the pieces of your job, your expenses, your relationships, and your values ​​- fit together?
If you answered ‘no’ to any of these questions, you must read this book.
The Wealthy Barber by David Chilton
This book is also the best financial book like many other financial books but it is more like a novel, The novel is centered around the author David.
An expectant father who finds out that he is not yet financially ready, his sister Cathy who has a successful business of her own but doesn’t know much about investing and her friend Tom also.
They are all in their late 20s to early 30s and they visit a new person from time to time in Sarnia, Ontario. They have heard that they have become quite rich.
The three friends wonder how this man named Rai got so rich on a barber salary and David frequently visits him for financial advice while he is cutting his hair.
The Total Money Makeover by Dave Ramsey
This book is written on Debt Management, Debt management plays a huge role in personal finance. This book is a New York Times bestseller that explains, How to come out of debt and improve your financial skills.
This book is strongly recommended for improving your financial state by avoiding common pitfalls like cash advances or credit cards used along with advice on keeping emergency funds and saving for college, and retirement.
Liar’s Poker by Michael Lewis
The book Lair’s Poker is written by Michael Lewis, the author writing the book as an autobiography of his own time and the experiences of the Salomon Brothers before that.
The book also follows the rise and fall of the Salomon Brothers, with the author focusing primarily on the mortgage bond department in the book, which closely tracked the speculative bubble in various mortgage-backed securities in the 80s.
I Will Teach You to Be Rich by Ramit Sethi
” I Will Teach You to Be Rich ” is a New York Times and Wall Street Journal bestseller book, written by financial expert Ramit Sethi.
He explains that you can spend your money, guilt-free as long as you have it invested and allocated properly. This book also explains how to deal with common pitfalls like student loans, late fees etc.
Winning the Loser’s Game by Charles Ellis
This book is a well-known investment book based on real data and historical facts which always argues that successful investors always focus on long-term strategies to avoid short-term traps like compounding time and natural volatility of markets Lower.
This book provides strategies to gain control of your investment future by working with the markets rather than against them and we can learn a lot about our investing from it.
When Genius Failed: The Rise and Fall of Long-Term Capital Management by Roger Lowenstein
It is September 1998 when the New York Federal Reserve Bank invited several major Wall Street investment banks to enter into a consortium to fund a multi-billion dollar bailout of a troubled fund when the nearly $3.6 billion plan.
The announcement was not made soon so questions arose as to why the usually independent banks would come together to save a privately held fund, the answer to which was that the banks feared that the collapse of the fund could destabilize the entire stock market.
In the book, the author has shown the story of a fund’s fall and rise again with great reality which can teach an investor a lot and inspires them to grow.
Common Sense on Mutual Funds by John Bogle
“Common Sense on Mutual Funds” book written by John bogle.
This book gives advice to investors about Mutual Funds. In this book, the author has emphasized the importance of adopting a long-term strategy along with the appreciation of index funds.
Since the publication of this book, both the book and the author have received high acclaim in the investment community and this book has been counted as a bestseller for investors. who do not have the time to research to invest in direct stocks.
Buying Mutual Funds and Investing in Equity This book helps investors to choose the best mutual funds and encourages them to stick to them a long-term strategy. All those who want to invest in Mutual Funds should read this book.
Conclusion
Rich dad poor dad, The Richest Man In Babylon, and Think And Grow Rich is the three financial literacy books that I personally follow and read many times.
When you read these best financial literacy books you feel an energy in your body and learn new things in a funny and enjoyable manner.
Learning financial literacy can change the life of a person and make him economically stronger.
FAQ
What is the best finance book to read for financial literacy?
The top financial book in my view is Rich Dad Poor Dad which made me curious about financial education and is always ready to learn financial things today and I think you must read the world’s bestseller financial book Rich Dad Poor Dad written by Robert T. Kiyosaki.
How To Become Financially Literate?
By reading books about financial literacy and gathering information from websites related to financial literacy, you can become financially literate, as well as you have to implement all the things you have learned related to financial literacy in your real life only then you can become a real financial literate person.
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