If you are anything like me, you have a lot of extra time on your hands due to the Great Quarantine of 2020. With this extra time maybe you are considering learning a new skill or putting a greater emphasis on increasing your learning. If reading more is one of your quarantine goals, here are five (mostly) financial literacy books I have enjoyed reading and highly recommend.
- Rich Dad, Poor Dad – by Robert Kiyosaki
Rich Dad, Poor Dad is a top-selling personal finance book. For me, this book provided a unique and new money philosophy. Robert Kiyosaki makes arguments for why debt may be good or bad, depending upon how you use it. He also discusses whether your own home should be considered an investment or not.
Lesson Learned: Look at money in a different way. Wealth is not your net worth; it’s how long you can go without working.
- The One-Page Financial Plan – by Carl Richards
The One-Page Financial Plan is a simple book about a complex issue. That is why it is brilliant! Carl Richards helps walk readers through your “why” for money. He helps you dig in and prioritize how and why you spend your money so you can eventually have more of it. Most importantly, he makes the whole process simple.
Lesson Learned: Analyze my own money values. Once these are understood, I can spend my money in accordance with my values.
- Good to Great – by Jim Collins
This was one of my quarantine books. I just finished it a little less than a week ago and gained a lot of knowledge. This book is, I will admit, less about personal finance and more about business. The reason I include it in this discussion is because the principals can easily be applied to your own finances. Jim digs into the question about what makes a great company different than a good company. Through a ton of research, Mr. Collins provides six key phases a good company goes through to become a great one.
Lesson Learned: Discipline is the key in life. You may not have large goals or enough knowledge yet to even know what your goals are. If you maintain discipline in your life, you prepare yourself when you finally understand or create your goals.
- The Millionaire Next Door – by Thomas J. Stanley & William D. Danko
The Millionaire Next Door explores American millionaires and how they became millionaires. The book found seven common activities/beliefs which these millionaires held in common. I found the book to be enlightening and hopeful. Millionaires are not just born into rich families, a majority of those interviewed for the book were first-generation millionaires.
Lesson Learned: Spending less than you make is a key to building wealth and being financially independent. You will not be able to point out most common millionaires. Funnily enough, the reason you would not be able to point them out is one of the reasons they are millionaires.
- Total Money Makeover – by Dave Ramsey
I will readily admit, I think Dave Ramsey has done more good for America than most celebrities. The Total Money Makeover discusses basic financial planning principals. It also brings Dave Ramsey’s personal hatred for any and all debt to the forefront. Dave presents seven steps to achieving financial freedom.
Lesson Learned: Getting out of debt is a choice to be made. It won’t happen on its own.
A final thought, these authors sometimes disagree with each other. I think that is what makes this selection of books so useful in developing your own goals and values around money. With money, there is rarely one single right answer. There are multiple best answers. Best wishes as you pick up one of these books! I hope you learn more about yourself and how you can better manage your money!
Don’t forget you can still schedule a free client session with Powercat Financial to discuss any financial issues via the link on our website at www.k-state.edu/powercatfinancial.
Philip Wegman, Peer Counselor II