Our thoughts are extremely powerful, they influence our...
Books are one of the best tools to obtain information. This is especially true when it comes to personal finance information and information on wealth and success. Our top recommendations are on books that are inspiring and thought-provoking. Some of these books are so influential they allow you to become more aware of your thoughts, your mindset, and your behaviors which is extremely important in building wealth and success.
1. The Millionaire Next Door by Dr. Thomas J. Stanley and William Danko.
The authors of this book gathered information from high income earners in the 1990’s. In their research they found that despite all of their participants having high income, they differed in their net worth. They categorized them into two categories- under accumulators of wealth (UAW) and prodigious accumulators of wealth (PAW). UAW’s have high income but low net worth while PAW’s have high net worth, high income and are usually millionaires. This book will change how you look at wealth and influence you to become aware of how your choices can keep you from achieving wealth.
2. The Automatic Millionaire by David Bach
This book explains why automation is the easiest way to become a millionaire. Automating means less energy your brain needs to weigh out options that may be influenced by situations or emotions. It may seem simple but even basic decisions such as deciding how much you want to save each month can produce a lot of anxiety and we tend to avoid the things that make us anxious or uncomfortable. Therefore, automating is a process that eliminates the ability to have your emotions influence your decisions.
Bach also talks about the importance of paying yourself first. By automatically putting money aside, you are forced to save and spend what is left versus spending and then saving what is left. This should be done through a work retirement account and a savings account. Other accounts such as bills can also be set up for automation which will ensure you won’t forgot to make a payment that can over time affect your credit score.
3. Rich Dad Poor Dad by Robert Kiyosaki
Growing up Kiyosaki was influenced by two fathers. One was his own father, a hard-working educated man, and the other his friend’s father, a business man with no college education. Kiyosaki’s father held traditional views, he valued education and jobs with good benefits but despite having both of these, always struggled financially. His friend’s father differed in the ways he thought about money and influenced Kiyosaki to do the same starting at an early age.
In his book, Kiyosaki talks about the differences between assets and liabilities and how wealth means having more assets and less liabilities. He describes assets as the things that make us money and liabilities as the things that we spend money on that don’t make us money.
Rich Dad Poor Dad will influence you to consider if the things you are spending money on are assets or liabilities. Kiyosaki also talks about the importance of paying yourself first and says
“The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.”
— Robert T. Kiyosaki
4. The Power of Habit by Charles Duhigg
A habit is an unconscious pattern of behavior created over time through frequent repetition. Habit loops are neurological patterns that start with a cue, such as after a thought, emotion, belief, time of day, etc. that then trigger a routine and end with a reward such as satisfaction. This book explains the science between what forms and maintains habits and explains how to change habits. Habits can have a profound impact on all aspects of people’s lives. Understanding how to create better habits is therefore extremely important to good health, wealth, and success.
5. I Will Teach You To Be Rich by Ramit Sethi
There are a lot of personal finance books out there, but what we like about Ramit’s book is that it’s geared towards a younger audience, specifically recent college graduates, and explains everything one needs to know to manage their finances while incorporating humor and real-life examples. Ramit’s book also explains how to negotiate deals on utilities and large expenses, how to select the best credit cards, the benefits of credit cards, and like Bach and Kiyosaki, the importance of automation.
February 11, 2018
Thinking about personal finance and budgeting makes some...
February 6, 2018