The Top 5 Finance Books For Absolute Beginners

Whether you are a new grad starting your first job or you have finally decided to take charge of your money and dive into the world of personal finance, I’m here to help you find the right resources for your journey!

It is never too early or too late to start learning about how to make your money work for you, but it can be overwhelming to figure out where to start. That’s why I have compiled this perfect list of the top 5 books you can read to get started on your journey toward your money goals, whatever they may be.

Each of these books offers a unique approach to the same problem – How do I get rich? That is after all the golden question we spend all our lives asking! If you are looking to learn the basics of personal finance like investing, getting out of debt, saving more money or retirement planning, then you’re in the right place!

The Top 5 Personal Finance Books

1. Your Money or Your Life

This book is a classic read that teaches you about becoming financially independent. It guides you toward a debt-free life and teaches you how to begin saving money. It helps you change your outlook toward money.

The author takes you through a 9-step program which helps you decode your finances, reduce your spending and improve your savings. She refers to time as ‘life energy’ and encourages the reader to spend it with care!

Being frugal doesn’t mean you stop buying things and live a miserable life. It’s about spending your money on the things that are truly important to you. It walks you through the basics of budgeting and investing in stocks, bonds and index funds.

Key focus of Your Money Or Your Life

• Financial Independence

Who is this book for?

• A financial beginner who wants to learn about growing wealth and achieving financial independence.

 

2. I Will Teach You To Be Rich

This book covers the basics of personal finance that should have been taught in school! Unlike the older books on personal finance, this one is immediately relatable and teaches you how to make your money work for you!

It has a ‘6-week’ program which teaches you about credit cards, high interest savings accounts, Roth IRA and 401k (US retirement accounts). It also talks about automating your savings and how investing is the only way to get rich.

The author inspires you to take charge of your money and encourages you to invest early!

Key focus of I Will Teach You To Be Rich

• Beginner’s guide to personal finance

Who is this book for?

• New college grads who don’t know how to manage their finances.
• Anyone living paycheck to paycheck or saving all their money in a checking account!

 

3. Broke Millennial

Broke Millennial is the perfect blueprint for every financially oblivious millennial who wants to master their money. This book has refreshingly straightforward advice and several true stories which are hilarious!

It addresses all the present day money challenges that young adults face like student loan debt, managing finances while living at home and, balancing finances and friendships.

The author teaches how to budget and pay off debts while saving money. She gives great advice on how to master your credit score and increase it to 800! She shows that small changes can lead to wonderful results when it comes to savings goals, no matter how tight your money is!

Key focus of Broke Millennial

• A millennial’s guide to financial success!

Who is this book for?

• Millennials who are living paycheck to paycheck or need help managing their money and growing their savings.
• Anyone who is a total beginner and has no idea where to begin with managing their money.

 

4. The Simple Path To Wealth

Simply put, this book makes investing really easy and avoids all the complex notions that people presume about investing their money. Here’s the main idea that is repeated multiple times – “Spend less than you earn, invest the difference and try to avoid debt at all costs!”

It shares a simple, no-nonsense approach to stock investing. This book has some of my favorite quotes about money! “Stop thinking about what your money can buy. Start thinking about what your money can earn. And then think about what the money it earns can earn.”

The author places a high importance on financial freedom because it can buy the most valuable thing of all – freedom. He explains about the workings of the stock market and he talks about the steps to take when the market fluctuates.

Key focus of The Simple Path To Wealth

• Investing & financial independence.

Who is this book for?

• If you want to start investing but you’re overwhelmed by the massive volume of information, then this book is for you!
• Someone who is interested in retiring early but doesn’t know where to start or how it would work .

 

5. The Little Book Of Common Sense Investing

This book was written by the man who actually created the first index fund! He is also the founder of the Vanguard Group. Who better to learn from about investing in index funds than him?

The main takeaway from this book is that investing should be simple and focused on the long term. It urges you not to get caught up in short term gains. The author talks about how the most effective investment strategy for building wealth is to buy and hold low-cost index funds that track a broad stock market index such as the S&P 500.

This book is considered the bible of investing and rightly so!

Key focus of The Little Book Of Common Sense Investing

• Long term investing

Who is this book for?

• Anyone who wants to start their investment education and learn about the long term approach to growing their wealth.