I have always believed that reading great books shape your thoughts. I enjoy reading all kinds of books and especially ones that have important lessons in personal finance. Below are my three favorite books on money, personal finance and savings.
1. It’s Not What You’ve Got: Lessons for Kids on Money and Abundance by Dr. Wayne Dyer
Dr. Wayne Dyer, a well-known motivational speaker has written several books on positive thinking and self-actualization for us grown-ups. He has also targeted young audience with “It’s Not What You’ve Got: Lessons for Kids on Money and Abundance.” As a parent, I want my children to learn the importance of financial discipline. Needless to say, before sharing this knowledge with my children, I read it and enjoyed thoroughly. This book is more for adults than for children and indeed a best gift you can give to your children. A must read for anyone who wants to find meaning in money and here are my three takeaways from this book.
- I only spend money that I have (I will not use my credit card for buying shoes, clothes etc.).
- I will always be proud of money that I earn (I will not keep a tab on others’ earnings).
- Every job I do is important (I will work harder and get luckier).
2. Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money — That the Poor and Middle Class Do Not by Robert Kiyosaki
This is another great book on personal finance and growing your wealth. Robert Kiyosaki is an investor, entrepreneur, financial commentator and an advocate of financial literacy. The advice given in this book breaks the conventional thinking patterns we have been exposed to for years. A must read for someone who wants to attain financial freedom. Here are my three takeaways from this book.
- All of you were given two great gifts: your mind and your time. It is up to you to do what you please with both. (Use your time on increasing your net worth).
- Whenever you feel ‘short’ or in ‘need’ of something, give what you want first and it will come back in buckets (Give value to receive value).
- Just know that it is fear that keeps most people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money. the fear of starting over (Follow your heart and passion and do not worry about money).
3. The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
Dave Ramsey, one of my favorite authors has unlocked a secret code for financial fitness in his classic book “The Total Money Makeover: A Proven Plan for Financial Fitness.” This book condenses the financial wisdom of Dave Ramsey in easy to follow steps and makeover plan to get rid of debt by recognizing some of the myths about money. This is a great read. Here are my three takeaways from the book.
- We live in a cause and effect world. What you sow, you will reap. (It is indeed true not only with our financial habits but all the habits we embrace in our life.)
- When times are booming, you can do dumb things with money, get sloppy and take huge risks without realizing it. (It is important to save money and invest your savings even when you are on top of the game.)
- Winning at money is 80 percent behavior and 20 percent head knowledge. (For attaining financial freedom, you don’t need to have the knowledge of all the tools, but by taking few right steps, you can save a lot).