Home My Favorite Books On Personal Finance

My Favorite Books On Personal Finance

by Grokking Money

Disclaimer – This page doesn’t contain any affiliate links and I don’t receive any money from Amazon if you decide to make a purchase after reading this review.

  • The Total Money Make Over – Dave Ramsey

Highlights

  1. Borrow is slave to lender. Avoid debt at all costs.
  2. Live on less than you make. Have a written budget and stick to it.
  3. Don’t use credit cards. Always pay cash for your purchases.
  4. Don’t borrow a mortgage with a monthly payment of more than 25% of your take home pay.
  5. Always buy level term insurance which is 10-12x times your annual salary. Steer clear from all other insurance products especially whole life insurance policy and others which have an investment component tied to it.
  6. Always pay cash when you buy a car. Everything you own which has wheels and motors on it shouldn’t not be worth more than half your annual salary. If you do, then you have too much tied up in assets that are going down in value.
  7. Invest 15% of your house hold income into retirement.
  8. The books also provides a step by step method to build wealth. It’s called the Baby Steps.
  • The Automatic Millionaire – David Bach

Highlights:

  1. Don’t budget. Instead focus on automating your finances. This helps you spend guilt free.
  2. Pay yourself first (A common recommendation)
  3. Pay your mortgage bi-weekly (could reduce it by 5-10 years)
  4. Put away 10% of your money
  5. Tithe
  6. Always save some, even if you have debt, while debt reduction should be a priority, having a little cash will help to avoid future debt.
  7. He is famous for his Latte Factor concept. Jump to his site to know your latte factor.
  8. Don’t stop investments while you are paying off your debt.
  9. Use home ownership and interest paid towards mortgage as a tax saving hack.
  • I Will Teach You To Be Rich – Ramit Sethi

Highlights

  1. Save time by not wasting it managing money.
  2. He busts the most common myths about credit cards.
  3. He shares some great tips to negotiate like an Indian.
  4. How to make the most out of your savings accounts.
  5. How to come up with funds for short term and long term goals.
  6. Practical hacks on how to talk to a customer care rep to waive off a late payment fee and how to never be late on your bills.
  7. The difference between being cheap and being frugal.
  8. He strikes the chord with a lot of people in the age group of 20-35 and his philosophy is geared towards the millennial crowd. I was totally able to connect to his teachings.
  • The Millionaire Next Door – Thomas J Stanley and William D Danko

Highlights

The books provides insights into the characteristics of millionaires in America.

  1. They live well below their means. They are frugal in their spending.
  2. They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
  3. They believe that financial independence is more important than displaying high social status. Avoid keeping up with the Joneses.
  4. Their parents did not provide economic outpatient care .
  5. Their adult children are economically self-sufficient. The wealth build by one generation is not squandered away by the next generation.
  6. They are proficient in targeting market opportunities.
  7. They chose the right occupation. This in turn helps them to build wealth by the virtue of a profession that pays well.
  • The Richest Man In Babylon – George S Clarson

Highlights

This timeless classic holds the key to all you desire and everything you wish to accomplish. This book reveals the secret to building wealth.

  1. Save 10% of everything you make. 
  2. Be smart not dumb 
  3. Invest the money you save.
  • Love Your Life Not Theirs – Rachel Cruze

Highlights

  1. Don’t compare yourself with others. That’s the worst thing you can do to damage yourself.
  2. Don’t try to keep up with the Joneses. If you look at people’s life on social media and think it’s their real life, you need a reality check.
  3. Hidden behind that glossy exterior are credit card bills, student loans, car payments, and an out-of-control mortgage. Their money situation is a mess, and they’re trying to live a life they simply can’t afford.
  4. It questions if you are following your dreams or living other people’s dreams. Are you allowing other people dictate the pace of your life and how you go about achieving your goals.
  5. It helps you build a good relationship with money and build good money habits.
  6. Avoid going into debt to buy things. If you cannot pay cash, you can’t afford it.
  • Your Money Or Your Life – Joe Dominguez and Vicki Robin

Highlights

  1. It will help you understand the basics of money.
  2. It will help you reconnect with old dreams and find ways to realize them.
  3. Once you have a great sense of freedom and relief, you’ll learn how to distinguish between the essentials and the excess in all areas of their lives and lead a burden free life.
  4. How to improve their relationship with their spouses and children.
  5. You learn about financial integrity. It helps you resolve many inner conflicts between your values and lifestyles.
  6. Money ceases to be an issue in their lives, and they finally have the intellectual and emotional space to take on bigger issues in life.
  7. It will help you get rid of your debts, increase your savings and live happily within your means.
  8. It increases the amount of ‘free time’ by reducing expenses and the amount of time on the job.
  9. You stop buying your way out of problems and instead use such challenges as the opportunity to learn new skills.
  10. It will help you heal the split between your money and their life, so that your life becomes one integrated whole.
  11. How to get rid of the trap – ‘nine to five till you are sixty-five’ or ‘owe your soul to the company store’ pushing for a higher ‘standard of living’ etc.

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