Personal Finance is a never-ending journey. As we move up the ladder of financial success we face different problems and just because you have a higher income does not mean you are saving more or are in a healthier financial situation.
There are many resources to educate yourself on handling your finances. Here is our list of the books we think are best:
This book is one of the most popular personal finance books ever and it discusses the mindset of the author's middle-class father and the father of one of his friends who happens to be one of the most successful people in his city. The book compares and contrasts the differences in how the two individuals managed their finances. The author argues that by learning from the rich dad you can build wealth with whatever income you may have.
Dave Ramsey is a famous American personal finance guru with one of the most popular radio stations and podcasts. He focuses on debt reduction and how to take complete control of your financial life. So if you are struggling with debt we would strongly suggest reading this book.
The total money makeover starts out with 7 Baby Steps to financial freedom:
i) Save PHP 50,000.00
ii) Get out of debt
iii) Build an emergency fund
iv) Invest 15% of all income for retirement
v) Save for your kid's University
vi) Pay off your mortgage debt
vii) Build wealth and don't forget to be generous
The book discusses the typical lifestyle of people working long hours with a lot of stress just to support a lifestyle full of material objects and not enough time or money in their lives. The author makes an important argument on the importance of time in our lives and that exchange our time for money in order to buy objects does not lead to a fulfilling life. Similar to the Total Money Makeover by Dave Ramsey - the author tries to help you get out of debt and begin saving.
The book was written around research that looked into the lives of millionaires in the United States. They begin by segregating the population into Under Accumulators of Wealth and Prodigious Accumulators of wealth and study the findings of the two. A few key take away's on how to become an accumulator of wealth starts with spending less than you make and avoid buying objects of status. You don't need that new phone or new car because most likely they only serve as status symbols.
Think and Grow Rich was first written in 1937 but still offers some very good advice that we can apply to our lives today. The book is timeless and provides great words of wisdom which can be applied to many of life's struggles today. It is not just about financial success but about going after what you want. Just as we are going through a difficult period today with COVID-19 this book was written just after the Great Depression and provides important lessons on the mindset of building wealth and overall success. He argues that in order to find success one must:
a) Desire
b) Believe
c) Act
d) Persist
The Richest Man in Babylon was originally published in 1926 and provides financial advice in the form of parables written over 4,000 years ago. The book is divided into two parts focusing on how to generate wealth and hot to protect and invest your wealth. The book advice's you to do the following:
a. pay yourself first
b. live within your means
c. invest in what you know
d. saving for the long-term
e. own your own home
The Key Take Away
All these books tell a somewhat similar story to personal finances, so it is your job to find the one that you can most relate to and follow their advice.
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