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Top 10 Personal Finance Books that everyone should read before the end of 2021.

Would you like to improve your finances? Read a book on personal finance. Most people have always told me that.  When I asked them to help me improve my finances. However, they never said which books or From where I should start. So, I did some research and read some books that helped me improve my finances.

In this blog, I am going to share some of the top 10 books that helped me improve my finances. And 2 Bonus Books To Read Before The End Of 2021. 

Let’s get into it.

1. The Millionaire Next Door

This book was written in 1996 by authors: Thomas Stanley and William Danko. This book is for you if you want to be financially free and inspired. 

The key factor in this book is to be frugal and Invest.

The author wrote this book after researching various groups of people. The research was conducted on American millionaires and how they got wealthy. Then, he discovered that millionaires have 7 common habits.

1 Habit – Every wealthy person are frugal (live below your means)

2 Habit – They invest in stocks.

3 Habit – Use TEM (Time, Energy, and Money) efficiently.

4 Habit – Parents Economic Care (Earn for yourself).

5 Habit – look and target market opportunity.

6 Habit – They choose the right occupation. 

7 Habit –  Aim toward financial freedom.

People who lead a luxurious lifestyle don’t have a lot of wealth. According to the author, true millionaires are frugal. They believe that financial freedom is more important than displaying high social status.

This personal finance book will help you understand 

  1. Who is a millionaire? 
  2. What makes millionaires different from the rest of us? 
  3. How to determine your net worth?
  4. Average accumulator of wealth.
  5. Prodigious accumulator of wealth(PAW).
  6. Under accumulator of wealth(UAW)
  7. 7 common habits of wealthy people.
  8. And how to become a millionaire?

Things to learn from the book, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy.

  1. Try to be frugal.
  2. Live below your means.
  3. Making an annual budget for expenses and investments is as important as making money. 
  4. Invest consistently.
  5. Find a good investment and invest in the long term.
  6. 95% of millionaires invest and own stocks.

After reading this book, you will learn that there is a vast difference between being rich and being wealthy.

This book can be really useful for people who are easily influenced by material goods.

The Millionaire Next Door (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Google Play Books
  4. Amazon
  5. Flipkart

Customer Reviews of “The Millionaire Next Door” book

Amazon customers have given 4.6 out of 5 stars.

Goodreads has given a total of 4.03 stars out of 5.

Flipkart customers have provided 4.3 out of 5 stars.

2. Rich dad poor dad

This book was written in 1997 by Robert Kiyosaki and Sharon Lechter. This is the most famous book and covers every aspect of personal finance. You might have heard about this book.

In this book, Robert Kiyosaki compares the advice given by his two fathers (his friend’s father and his father). He described them as a rich and poor fathers. This book has changed the perspective of millions of people around the world on how they think about money.

This personal finance book will help you understand

  1. Why are rich people getting rich, and poor people are getting poorer?
  2. What rich people know and do that middle-class people don’t know?
  3. What is the Rat race? And How to get out of it?
  4. How to invest your money to make more money?
  5. Why Rich people invest whereas poor people save their money?
  6. How rich people teach their children? How does the middle class teach their children?

Things to learn from the book, Rich Dad Poor Dad

  1. To Manage Cash Flow.
  2. Focus on building assets not liabilities
  3. Control your fear and start right now.
  4. Build wealth.
  5. Cashflow quadrant (4 ways to make money).
  6. The wealth triangle (learn how money works).
  7. Power of money.

After reading this book, I would recommend everyone to read it at least once. And this book should be made compulsory in school too. 

After finishing this book, you will understand why you should learn before earning. You don’t need a lot of money to get rich. This book can be really helpful for beginners who have no experience in finance and want to learn.

‘Rich Dad Poor Dad’ (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Amazon
  4. Flipkart

Customer review of ‘Rich Dad Poor Dad book’

Amazon customers have provided 4.06 stars out of 5.

Goodreads has given a total of 4.09 stars out of 5.

Flipkart customers have provided 4.3 out of 5 stars.

3. The Total Money Makeover

The Total Money Makeover was written by Dave Ramsey in 2003. 

Debt management is the most important part of personal finance. Most people lack the knowledge to get rid of their debts. So, if you want to manage your debts and get rid of them in the easiest way possible. Then, this book is for you.

In this book, Dave Ramsey explains how he and his wife paid $52,000 of debt in just 18 months. In fact, this book highlights 50 real-life stories of people who become debt-free. 

The Total Money Makeover has been a bestselling book in the New York Times.

This book mentions 7 baby steps to follow that can eventually help people get out of their debts.

This personal finance book will help you understand. 

  1. How to become debt-free fast?
  2. Improve your finances
  3. Why should you put away your 15% income for retirement? 
  4. Save for the kid’s college fund.
  5. How to master your money?

Things to learn from the book, The Total Money Makeover

  1. Why should you save a small emergency fund of $1000?
  2. Use of debt snowball method to pay off all your debts
  3. 7 steps to get free from debts.

David Ramsey’s 7 baby steps to follow to get out of debt.

David Ramsey’s 7 baby steps to follow to get out of debt.

  1. STEP 1

    Save $1000 starter emergency fund.

  2. STEP 2

    Pay consumable debt fast.

  3. STEP 3

    Save emergency funds 3-6 months’ worth of expenses.

  4. STEP 4

    Invest 15% in retirement.

  5. STEP 5

    Save for kid’s college fund.

  6. STEP 6

    Pay off your home mortgage.

  7. STEP 7

    Generate wealth.

This book will help you if you are bad with money and struggling to pay off your debts.

Anyone can read this book and learn something new regardless of their age and Income.

*Note from author – Read this book at least once in your 20’s

‘The Total Money Makeover’ (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Google Play Books
  4. Amazon
  5. Flipkart

Customer review of ‘The Total Money Makeover’

Amazon customers have provided 4.07 stars out of 5.

Goodreads has given a total of 4.24 stars out of 5.

Flipkart customers have provided 4.6 out of 5 stars.

4. I Will Teach You to Be Rich

This book was written by financial expert Ramit Sethi in 2009. It’s a bestseller in New York and the Wall Street Journal. This book teaches you the 4 most important factors in personal finance (banking, saving, investing, and budgeting).

Ramit Sethi has a website where he helps people of 20-35 years old with his six-week personal finance program. In fact, you can check your earning potential by taking a quiz.

This personal finance book will help you understand

  1. What is true financial freedom?
  2. How does money work?
  3. What are the mistakes? 
  4. Value of investing early.
  5. How to use your credit card efficiently and receive maximum rewards?

Things to learn from the book, I Will Teach You to Be Rich

  1. About Common Money mistakes that cost you millions.
  2. Automate your money management.
  3. Find your hidden income source
  4. Learn How to make investments for the long term
  5. How to Get Rid of Your debts.
  6. Learn to earn more money and improve your financial life

After reading this book, you will understand how to achieve more with what you have, and you don’t have to be the smartest person to get rich. The 10th Edition of the book features success stories of people who got rich from reading and learning about personal finances from this book.

‘I Will Teach you to Be Rich’ (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobook
  3. Amazon
  4. Flipkart

Customer review of ‘I will teach you to be rich’.

Amazon customers have provided 4.04 stars out of 5.

Goodreads has given a total of 4.11 stars out of 5.

Flipkart customers have provided 3.3 out of 5 stars.

5. Your Money or Your Life

Published in 1992 by Joseph R. Dominguez and Vicki Robin. Your Money or Your Life is the best personal finance book ever written.

The key factor in this book is to know what you are trading your life energy for.

This book will help you build strong relationships with your money. It is an updated version of the book for the 21st century. 

Anyone dreaming of a financially free future should definitely read this book.

This book remarkably explains the concept that more money is not the answer to achieving financial freedom and never leads to a happier life.

This personal finance book will help you understand.

  1. What is money?
  2. How to get out of debt and save?
  3. How to build wealth by investing the money you have saved?
  4. To be satisfied with what you have.
  5. Why should you create a monthly budget?
  6. How can you decide your truly hourly salary?
  7. Money is life energy.

In this book, the author has explained 9 steps to financial integrity.

Things to learn from the book, Your Money or Your Life.

  1. Calculate your Lifetime Income
  2. Keep track of your money
  3. Create a wall chart to track your income and expenses
  4. Minimize your spending habit (Most people always buy what they don’t need.)
  5. Take responsibility for your personal financial life and Increase your income.

A positive relationship with money is displayed in the feeling of satisfaction and fulfillment you experience from your job and how it connects you with others.

This book is for people who want an early retirement and live their life financially free.

In general, this book will improve your mentality and perspective towards your money.

Your Money or Your Life (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Amazon
  4. Flipkart

Customer review of Your Money or Your Life.

Amazon customers have provided 4.05 stars out of 5.

Goodreads has given a total of 4.02 stars out of 5.

6. The Richest Man in Babylon

Issued in 1926 by George Samuel Clason. The Richest Man in Babylon is a classic book that offers advice on personal finance and contains the secrets to accomplish everything you desire.

The book also explains the basic concepts of making wealth with the help of a story in a very remarkable way.

In this book, the author advises us that we should give 10% of our income to ourselves first and then use the saved money to make some extra wealth and we should keep doing it until we reach that point where our spending doesn’t affect our money.

This personal finance book will help you understand

  1. Why should we never give our money for investment to someone who doesn’t know how to invest?
  2. What does working hard mean?
  3. Why should you take advice only from people who are skilled in that field?
  4. You should always keep learning in order to grow.
  5. If you don’t invest your earned money it’s not yours to keep.

( let say, you earned $1000 and immediately used it to buy your favorite clothes or other items, so, in reality, $ 1000 isn’t actually yours, but theirs..)

Things to learn from the book, The Richest Man in Babylon.

  1. There is a difference between earning money and attaining wealth.
  2. People achieve luck through working hard.
  3. People can’t get rich without working.
  4. Always diversify your investment.
  5. Control your spending habits.
  6. Greed affects your decisions.
  7. Multiply your earnings, not spending habits

The Richest Man in Babylon is available in Hindi for Indian readers.

This book holds the biggest secret of money in very simple words.

After reading this book, you will understand that saving a small percentage of your money and investing wisely ultimately leads to financial freedom.

This book is a must-read for people who have a bad habit of spending and takes a loan to live a luxury lifestyle.

The Richest Man In Babylon (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Google Play Books
  4. Amazon
  5. Flipkart

Customer review of The Richest Man in Babylon.

Amazon customers have provided 4.05 stars out of 5.

Goodreads has given a total of 4.26 stars out of 5.

Google audience has rated this book with 4.7 stars out of 5.

Flipkart customers have provided 4.5 out of 5 stars.

7. The One-Page Financial Plan

Published in 2015 by Carl Richards.

When it comes to money and where to invest it properly, many people find it complicated and don’t know what to do?

Carl Richards explained in this book that people fear and are confused about how to invest because they don’t know the difference between speculating, Trading, and Investing.

This book offers solid advice on personal finance and helps people achieve their financial goals in a simple, one-page plan.

In this book, author Carl Richards explains in very simple terms that people’s behavior is directly connected to whether they will achieve financial success or not and how much potential they have to earn.

This book will help you understand.

  1. Why is money important?
  2. How to create financial goals?
  3. Why is it necessary to know your current financial situation?
  4. Why is budgeting important?
  5. You need to keep moving forward to achieve financial goals.

Things to learn from the book, The One-Page Financial Plan

  1. Invest like scientist 
  2. Borrow and invest wisely
  3. Avoid big mistakes by making strategies.
  4. Create a one-page financial plan.

After reading this book, you will find that financial planning is not complicated. Though, this one-page financial plan book gets right to the point and has made financial planning easier and more understandable.

The financial planning process in this book is so simple that anyone can read and create a OnePage financial plan.

The One-Page Financial Plan (personal finance book) is available on these platforms. 

  1. Audiobooks
  2. Google Play Books
  3. Amazon
  4. Flipkart

Customer review of The One-Page Financial Plan

Amazon customers have provided 4.03 stars out of 5.

Goodreads has given a total of 3.74 stars out of 5.

8. The Automatic Millionaire

Issued in 2003 by American author, David Bach.

Do you want to become a millionaire?

In this book, the author has presented a very solid method that can make anyone rich. However, don’t confuse this book with getting rich quick schemes or methods.

This international bestseller, The Automatic Millionaire, is a powerful one-step plan to live and get rich.

David Bach gave practical tips on how to lower our expenses and improve our savings.

The book begins with an inspiring story about a couple with an annual income of $55,000 and the way they achieved financial freedom.

This book will help you understand.

  1. Not all people benefit from owning a house.
  2. You should try to save money even if you are in debt.
  3. Benefits of using an automated payment system.
  4. How to get rid of credit card debt in 3 simple steps?
  5. Why is donating money a financially smart move?

Things to learn from the book, The Automatic Millionaire

  1. Pay yourself first
  2. Benefits of an emergency fund

This book is for beginners who have never read a personal finance book and for people who don’t mind making mistakes.

This book is also for someone who wants to build wealth.

After reading this, you will understand the value of the automated payment and how regular savings can lead to early retirement.

The Automatic Millionaire (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Google Play Books
  4. Amazon
  5. Flipkart

Customer review of The Automatic Millionaire

Amazon customers have provided 4.07 stars out of 5.

Goodreads has given a total of 3.93 stars out of 5.

Flipkart customers have provided 3.9 out of 5 stars.

9. Broke Millennial

Issued in 2017 by Erin Lowry. Broke Millennial: Stop Scraping By and Get Your Financial Life Together is a book for beginners who want to step up their money.

In this book, Author Erin Lowry explains step-by-step techniques to go from being broke to financially free.

The key factor in this book is to be able to control your money and your life.

This book includes all of the financial problems most people face in life today.

This personal finance book will help you understand.

  1. How to negotiate for what you want? 
  2. Benefits of renting and owning a house
  3. You don’t need a lot of money to start investing
  4. Hiring a financial advisor is not a waste of your money but an investment 
  5. Benefits of early saving
  6. What should you check before you open your first retirement account?

Things to learn from the book, Broke Millennial

  1. Difference between financial advisor and planner
  2. Difference between renting and owning a house
  3. Tax Benefit for retirement fund
  4. Understand your relationship with money
  5. Manage student loan

This book contains the basic knowledge of finances, so it not for people who have certain knowledge in personal finance.

Overall, This book is for people who are new to personal finance. 

Broke Millennial (personal finance book) is available on these platforms. 

  1. Audiobooks
  2. Google Play Books
  3. Amazon
  4. Flipkart

Customer review of Broke Millennial

Amazon customers have provided 4.06 stars out of 5.

Goodreads has given a total of 3.9 stars out of 5.

83% of people liked this book. (google users)

10. The Little Book of Common Sense Investing 

Issued in 2007 by John C. Bogle. 

This book contains basic knowledge techniques of investing and selecting stocks.

Author John C. Bogle founded the largest exchange-traded fund company – Vanguard 

This book explains the basic concepts of low-cost index funds

The main focus of this book is straightforward, invest in the cost-effective method which is the Index fund, and avoid investing in mutual funds.

This book contains in-depth knowledge of how to create your portfolio   

Things to learn from the book, The Little Book of Common Sense Investing

  1. Keep costs low
  2. How to use ETFs
  3. Diversify your portfolio with the help of ETFs
  4. Effective ways of Creating a portfolio 

This short and simple book is for budding investors who want to learn how and where to invest their money from scratch.

The Little Book of Common Sense Investing (personal finance book) is available on these platforms. 

  1. Audible
  2. Audiobooks
  3. Google Play Books
  4. Amazon
  5. Flipkart

Customer review of The Little Book of Common Sense Investing

Amazon customers have provided 4.07 stars out of 5.

Goodreads has given a total of 4.2 stars out of 5.

Flipkart customers have provided 4.4 out of 5 stars.

2 bonus Books to read before the end of 2021.

These 2 books are the best books on personal finance that you should read immediately.

1. Why Didn’t They Teach Me This in School?

Your school didn’t teach you how to manage your money? Then, you should definitely read this book.

Published in June 2017 by Cary Siegel. 

In this book, the author Teaches 99 personal finance lessons that help you get ahead in life.

This book was originally intended for the author’s five children once he realized that they had not learned the vital lessons of personal finance.

One of the main reasons for writing this book was that High school and MBA colleges rarely offer personal finance lessons to their students.

This easy-to-read book contains first-hand advice from Cary Siegel on personal finances.

This book is for graduates and anyone who wants to start their finance in the right manner.

2. The Psychology of Money

The Psychology of Money was published by Morgan Housel in September 2020 and since then this book has won the hearts of millions of readers.

In this book, the author shares some fundamentals and tools required for saving and investing money.

His method does not revolve around the math and spreadsheets required for personal finance, but mainly focuses on how our behavior and psychology play an important role in the way we manage our money.

97% of Google users have liked this book(The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness)

This Interesting fast-paced book is for someone who wants to learn how to control the way they think about their money.

Conclusion

These top 10 books contain everything you need to achieve financial freedom.

The Books mentioned in this article are for people who are interested in leveling up their personal finance.

2 Bonus book that is mentioned in this blog, is a must-read before the end of 2021, 

Books recommended in the bonus area are for people who have graduated and have no idea about personal finance as the skill and wisdom these authors have taught in these books are essential for making a healthy financial life.

If you have read one of the books mentioned above, share your experience and what you learned in the comment section below.

A little reminder – There are some revised editions, pirated versions, and summary books available for purchase with original book covers. So, avoid those books and buy an original edition of all the books to get legitimate and correct knowledge. If you can’t find the original book for purchase use the given link on this blog.

Related: Financial Freedom in 7 Simple Steps by Grant Sabatier.

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Aman
"Aman is a Co-founder of Monyoversee | Digital marketer | Freelancer (on-page SEO, Content Writer, and Social Media). Pursuing Under Graduation (B.Com) from Patna University. A blogger at day and a reader at night. He has experience in reselling and making money online and shares his experience about his personal financial life and the book he peruses with the help of a blog. You can find Aman on LinkedIn."
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