When it comes to improving your finances, reading from a diverse number of folks can be a great way to come up with great ideas that can help you achieve your goals. 2018 could be the year that you get started on the straight and narrow, financially speaking. Here are 10 books that you should read in 2018 to improve your knowledge of personal finance.
The Millionaire Next Door
This groundbreaking work from Thomas Stanley and William Danko has been out for quite a while, but the information that it provides is timeless. Stanley and Danko decided to look at what set rich people apart, and it was not at all what most people might expect. Most rich people avoid conspicuous displays of wealth and choose to live well below their means. This allows them to build wealth over time and become the millionaires who live among us.
Your Money or Your Life
This is another classic personal finance book, and Vicki Robin and Joe Dominguez ask the question of whether you want to really keep trading the valuable hours of your life for money. The way to escape the treadmill of working until you die is best arrived at by spending less than you earn and tracking accumulated capital until you reach a state of financial independence. Then, you can say that you truly own your time.
Rich Dad, Poor Dad
In his book Rich Dad, Poor Dad, Robert Kiyosaki looks at his two dads who had two very different views of money and wealth. He encourages his readers to stop working to earn and to begin working to learn so that they can think about money in the way his rich dad did and build wealth all along the way.
I Will Teach You to Be Rich
Ramit Sethi’s book is committed to helping the millennial generation automate their finances so that they can get rich over time. While he’s not radically frugal, he encourages this automation because he argues that getting started on the right track will get you farther than most people because of inertia. He offers some great tips toward this automation.
The Total Money Makeover
Even though some people might question Dave Ramsey’s assertion regarding investment returns and never, ever holding a credit card, this book is full of great advice. The best parts of the book deal with how to get out of debt and see that you’re very likely to avoid it going forward.
Cut your Grocery Bill in Half with America’s Cheapest Family
One of the biggest monthly expenses that most families will have each month is related to food. Steve and Annette Economides argue that this is not necessary, and they give strategies to cut down on your grocery expenses.
You Can Retire Sooner Than You Think
Wes Moss shows his readers that they don’t necessarily have to fret about retirement. As long as they start saving and pay off debt, the huge nest eggs that some financial advisors recommend are not a necessity. Moss breaks down how much money is necessary to save for each $1,000 of income in retirement and takes away some of the mystery of retirement by recommending saving in a series of buckets.
You’re So Money
Farnoosh Torabi is one of the leading personal finance voices around today. She focuses on stretching paychecks without calling for readers to be so frugal that they cannot enjoy life. Torabi recommends budgeting for luxuries and then cutting back in areas that are not as important to you.
You Need a Budget
Also related to the area of budgeting, Jesse Meacham’s book on budgeting is a must read. In this book, Meacham shows readers how to get out of debt so that they can escape the cycle of living paycheck to paycheck. This process can allow you to live a bit more freely and take away many of the concerns that being short of cash can bring.
Zero Down Your Debt
Getting out of debt is a theme among the personal finance space, and Holly Porter Johnson and her husband Greg are on board with this idea. The Johnsons recommend that readers use the zero-sum budget method each month to ensure that debts get paid off and that wealth is built.
Learning about personal finance is something that’s a big need in American society. By reading a few of these books during 2018, you’ll be well on your way to improving your financial outlook. That’s one great way to make the future look brighter.
—Tory Kiam, CEO of lia sophia