8 Best Personal Finance Books To Read in 2023

Why Read Personal Finance Books

Basic knowledge and understanding of personal finance are important for financial freedom. There’s a reason for that, as many people struggle with budgeting and saving. When one is overwhelmed by everyday finance, there’s little one can do to achieve financial freedom. That’s where the best personal finance books come in, as they can teach you about budgeting and ways to save money. So, you can manage your debt better and start investing for a better financial future. Personal finance books help you make informed decisions about allocating and growing your financial resources to achieve short-term and long-term financial goals.

Reading personal finance is about learning from the experts and gaining insights into how they made it big. Practical budgeting, debt management, saving, and investing knowledge will always help you. The following article discusses personal finance books for dummies and gives you an insight into authors. We believe in imparting financial education that comes with authenticity, so let’s delve into the books to make your buying book decision easier!

Best Personal Finance Books for Dummies

How to educate yourself about finance education should always start with easy-to-digest books. These beginner-friendly personal finance books for dummies will prove to be easy learning books if you are seeking to improve your financial literacy.

1. Rich Dad Poor Dad by Robert T. Kiyosaki

Author: Robert T. Kiyosaki

Robert T. Kiyosaki is a household name due to the personal finance book “Rich Dad Poor Dad.” The book was published in 1997 and has been a bestseller ever since. Rich Dad Poor Dad shares lessons Kiyosaki learned from his best friend’s dad, who was rich, and his poor dad on money-saving and wealth-building. 

Rich Dad Poor Dad is not the only book Kiyosaki has written, as there are several other books on personal finance, such as “Cashflow Quadrant” and “Rich Dad’s Guide to Investing.” All the books talk about the importance of financial education and looking for ways to generate passive income streams to achieve financial freedom.

Book: Rich Dad Poor Dad

“Rich Dad Poor Dad” is one of the best finance books. The book discusses personal finance by encouraging readers to think differently about wealth-building, financial education, and investing. The book is a goldmine about entrepreneurship and creating passive income streams to achieve financial freedom. There are many anecdotes and relatable examples through which Rich Dad Poor Dad explains financial concepts, making it the best personal finance books for dummies.

2. Personal Finance for Dummies by Eric Tyson

Author: Eric Tyson

Eric Tyson is one of the best personal finance authors and consultants. He is best known for his dummy series of books full of practical financial advice for beginners. His work remains popular among people who look for a simple path to wealth as his books are concise about the topics they delve into. 

One of his best finance books is “Personal Finance for Dummies,” which covers personal finance topics such as budgeting, saving, investing, managing debt, and planning for retirement. Tyson has also written many best personal finance books for beginners, such as “Investing for Dummies,” “Home Buying for Dummies,” and “Mutual Funds for Dummies.”

Book: Personal Finance for Dummies

After reading “Personal Finance for Dummies” by Eric Tyson, I found it to be a comprehensive guide for anyone looking to improve their personal finance. As one of the best finance books for beginners, it covers a wide range of topics, from budgeting and saving to investing and managing debt. What you will like most is Tyson’s approach to breaking down complex financial concepts into easy-to-understand terms. 

The practical advice, tips, and strategies provided in “Personal Finance for Dummies” are easy to apply to real-life financial situations. By following Tyson’s guidance, you feel confident in making informed financial decisions, managing your money effectively, and working toward your short-term and long-term financial goals.

3. The Total Money Makeover by Dave Ramsey

Author: Dave Ramsey

Dave Ramsey is known for his popular radio show, “The Dave Ramsey Show,” and his books on personal finance. He is the author of best-selling books on personal finance such as “The Total Money Makeover,” “Financial Peace,” and “EntreLeadership.” 

Ransey applies common-sense principles and mixes them up with practical advice. For example, his “Seven Baby Steps” plan, guides people by mapping out a plan to eliminate debt, build an emergency fund, save for retirement, and more.

Book: The Total Money Makeover

The Total Money Makeover by Dave Ramsey is an action-oriented personal finance book that presents a straightforward plan to achieve financial independence. For example, the book is famous for its “Seven Baby Steps” plan, a structured roadmap to financial well-being. As I followed these steps, I learned the importance of establishing an emergency fund, tackling debt using the “debt snowball” technique, setting aside funds for retirement, and more.

Ramsey explains concepts through real-world experience with time-tested principles that make it one of the best finance books for beginners. The book is written with energy and it makes you excited while you are reading as it urges you to break away from the cycle of debt and seize control of your financial future.

4. I Will Teach You to Be Rich by Ramit Sethi

Author: Ramit Sethi

Ramit Sethi is another American personal finance author and the founder of GrowthLab. He is known for his New York Times best-selling book, “I Will Teach You to Be Rich,” which talks about saving money, investing for beginners, and paying off debt.

What just started as a personal finance blog evolved into his successful website, iwillteachyoutoberich.com. His experience in behavioral psychology has helped him develop unique insights into the challenges people face when managing their money.

Book: I Will Teach You to Be Rich

I Will Teach You to Be Rich is a refreshingly practical and engaging personal finance book that empowers young adults to take control of their financial lives. The book discusses the importance of automating savings, investments, and spending. As I progressed through the chapters, I learned valuable lessons about managing credit cards, tackling student loans, and negotiating better deals, all while being encouraged to enjoy my life without feeling guilty about spending on things I value.

One aspect of “I Will Teach You to Be Rich” that’s particularly unique is Sethi’s focus on creating a personalized financial plan. He talks about finding the right balance between saving, investing, and spending money on what brings happiness, a refreshing change from the more restrictive approaches often found in other personal finance books. You can order the book if you are looking for the best personal finance books for young adults.

5. The Automatic Millionaire by David Bach

Author: David Bach

David Bach is a popular financial guru who is known for his best-selling “FinishRich” book series. All of his books are about helping people get their finances in order with easy-to-follow strategies. One of his famous concepts, the “Latte Factor,” shows how cutting back on small daily expenses can really add up over time.

Before he became an author and speaker, Bach held important roles at Morgan Stanley and Dean Witter. His real-world experience makes him an authority over the personal finance subject.

Book: The Automatic Millionaire

The Automatic Millionaire focuses on teaching you how to achieve financial success with minimal effort. The core theme of the book is to automate your finances, so you save and invest money without even thinking about it.
There are practical tips like setting up automatic transfers to savings accounts, investing in retirement accounts, and paying off debt automatically. The strategy that Bach wants you to adopt is, “paying yourself first,” meaning you should save and invest before spending on anything else. The book is considered one of the best personal finance books of all time that you may end in a reading session, especially if you want to get rid of debt.

6. The Simple Path to Wealth by JL Collins

Author: JL Collins

JL Collins is a financial blogger known for his book “The Simple Path to Wealth” and his popular blog. What makes Collins unique is his simple writing style which makes complex financial topics easy to understand. After all, reading about personal finance can be boring if there’s so much jargon.

The book is mostly about investment with the idea that the investment should be simple without getting into complexities. He mostly advocates for low-cost and passive index fund investing, and he shares many trustworthy names in the book.

Book: The Simple Path to Wealth

The book has just one goal to achieve- financial independence. Collins focuses on the importance of simplicity and clarity makes this one of the best personal finance books. The book delves into all the personal finance guidance on saving, investing, and securing their financial future.
As you read the book, you’ll come to understand Collins’ investment strategies, which emphasize the benefits of low-cost, passive index fund investing. He particularly recommends many investing funds in the book as a solid choice for building wealth over the long term. You can checkout the book if you haven’t read JL Collins before!

7. The Little Book of Common Sense Investing by John C. Bogle

Author: John C. Bogle

John C. Bogle was an American investor and business mogul known as the founder of The Vanguard Group, one of the world’s largest investment companies. He made it possible for the common man to invest as he is considered a guru in the field of low-cost passive investing.

In America, he is popularly known as “Saint Jack” among individual investors, and his influence extended well beyond the world of finance. Based on his experience, he wrote many best personal finance books such as “Bogle on Mutual Funds”, “Common Sense on Mutual Funds”, and “The Little Book of Common Sense Investing.”

Book: The Little Book of Common Sense Investing

The Little Book of Common Sense Investing is all about investing in low-cost passive investing strategy in index funds. Bogle suggests that individual investors would be better off investing in low-cost index funds rather than trying to beat the market through individual stock picking or actively managed funds. As in actively managed funds, there are higher fees and transaction costs involved.

As per Bogle, individual investors should focus on cost efficiency and long-term investment strategies such as the buy-and-hold approach. If you are just starting as an investor, this approach allows you to capture market returns while minimizing costs and avoiding the pitfalls of market timing and stock picking. This is one of the best personal finance books that you should include in your personal finance books read list.

8. Cashing Out by Julien and Kiersten Saunders

Authors: Julien Saunders and Kiersten Saunders

Julien Saunders and Kiersten Saunders are a couple who run their own personal finance blog and podcast “Rich & Regular.” The blog was started as financial independence and early retirement (FIRE). Since then, the blog has grown in popularity and they are widely sought after for sharing their experiences and wealth-building tips.
You can listen to them on Apple podcasts and Spotify podcasts. They upload episodes on a weekly basis where they talk about early retirement planning and other personal finance tips.

Book: Cashing Out: Win the Wealth Game by Walking Away

When we talk about personal finance, there’s the same pattern such as working hard, make money, saving, and investing. Now, we can’t deny how much everyone makes an effort, despite most people ending up making less over time. Well, you can’t just follow the herd and expect different results. There’s gotta be another way, a smart way.

Cashing Out gives a roadmap to achive financial freedom. It doesn’t ask you to work hard, it asks you to work smart to maximize your income, and eventually wealth.

Conclusion

If you want to achieve financial freedom, it requires a strong foundation in personal finance knowledge. The importance of budgeting, saving, and investing cannot be overstated, as these skills allow you to manage your debt effectively and build a secure financial future. By learning from books written by who are experts in personal finance and applying their practical advice, you can make informed decisions about your financial resources and work towards achieving short-term and long-term financial goals. We hope that our list of best personal finance books will help you make better financial decisions. If you have any other book to recommend, please do that in the comment section!