The right guidance can go a long way in ensuring you make financially sound decisions. And if a single thought of managing your finances makes you palpitate, then financial guidance is exactly what you need.
In keeping with the ‘Financial Literacy’ theme this International Literacy Day (September 8th), Souqalmal.com has prepared a list of books that will help you manage your finances judiciously. Read these books from cover to cover so you can learn some great tips and tricks to organize your finances and curb unnecessary spending.
Rich Dad Poor Dad by Robert T. Kiyosaki
The world of finance would be incomplete without Robert T. Kiyosaki teaching us about passive income. In his book, he has brilliantly compared the differences in how the rich and the middle class manage money, wherein, the former focus on assets and the latter, on liabilities.
The book makes for a great read, complete with graphical representations. One such graphical representation in the book explains that the Rich Dad kept expenses low and assets high to let his money make him money. But, the Poor Dad kept both, the expenses and the liabilities high. The book provides a perfect comparison of the right and wrong ways to handle personal finances.
The Automatic Millionaire by David Bach
David Bach starts this book by featuring a couple with a joint income that never goes beyond USD 55,000 in one financial year. However, the couple is still debt-free, own two houses and have two kids who attended college. By the age of 55, they retired with a savings backup of USD 1 million.
How did they manage the money?
Bach explains that a budget can’t help you manage finances. You need to start paying yourself first for the work you do. He also suggests utilizing an automated payment method to avoid the temptation of using up your savings. This will secure your future, while setting aside enough for your current expenses.
The Total Money Makeover by Dave Ramsey
There is a reason Ramsey managed to sell over 5 million copies of his book. In this book, he subtly exposes the financial decisions that lead us down the path of accumulating outrageous amounts of debt and stop us from making money. He also offers instructions for managing money along with a seven-step how-to analysis of getting rid of your debt.
“Winning at money is 80 percent behavior and 20 percent head knowledge. What to do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich.” – Dave Ramsey
Your Money Or Your Life by Joe Dominguez and Vicki Robin
Apart from giving personal finance guidance, the book also explains how to live a life of satisfaction with low debt. Even after gaining financial independence, most of us are trapped in the whirlwind of debt as a result of poor money management skills. The book instructs people on how to get rid of a debt-ridden and materialistic lifestyle by budgeting, saving for retirement and having fewer liabilities through the nine steps mentioned in the book.
“We shift from comparing ourselves to others to considering our real needs and desires. We shift from “more” to “enough” and ultimately get more of what money can’t buy. Priceless.” –Vicki Robin
Broke Millennial: Stop Scraping By And Get Your Financial Life Together by Erin Lowry
Lowry talks about managing finances, but in a different way. The book is not restricted to credit cards, debits cards, investment and budgeting. It talks more about managing your money in practical situations such as handling student loans and getting to know the debt situation of your partner. She explains how you don’t need to become a genius with numbers to handle finances. You can go from flat-broke to a financial mastermind with the steps explained in this book.