Many successful people will tell you that they read a book that changed their life. In this look at several of the best personal finance books of 2022, there might be one or more that could help turn your financial life around. Reading material is not always light, but it is important that you learn how to reach your financial goals or even set realistic financial goals. Learning from a financial advisor is a good complement to learning the financial books.
The following five personal finance books could help you better understand your financial needs and teach you how to set and achieve goals. Here are the five best personal finance books of 2022:
1. “Why didn’t they teach me this in school?” »
Have you ever wondered why they don’t teach personal finance in high school? Some colleges and universities require it, but not all. If you’re majoring in finance, you probably won’t take a personal finance course unless you take it as an elective. Most finance majors focus on business finance or investments instead of personal finance principles.
Many students graduate from high school or college and have no idea how to manage all aspects of personal finances. As the author of this book, Cary Siegel, wrote down what he thought were the guiding principles of personal finance for his children. He realized that his notes to his children had a wider audience and “Why didn’t they teach me that in school?” was born.
Most personal finance books and personal finance manuals are hard reads. Instead, this author focused on eight personal finance lessons and developed a comprehensive, yet short and simple, book around them. He linked 99 principles to these eight lessons and ended up with an excellent book that is more qualitative than quantitative. It gives you the knowledge to base the quantitative money management insights on which you need to learn. Following his own principles enabled Siegel to retire at age 45.
This is a great book to read before delving into more complex and quantitative personal finance books.
2. “The Millionaire Next Door: The Surprising Secret of America’s Rich”
The “Millionaire Next Door” is another type of personal finance book. Originally written two decades ago and recently updated to reflect the 21st century, the book explains how most millionaires in the United States are not professional athletes or movie stars. They are your neighbors. They live next door, right next to you. You probably don’t know they’re millionaires because they don’t brag about their money. They don’t drive fancy cars. They don’t live in amazing houses. They are like you and me except they have applied the principles of personal finance to their lives. Most didn’t even inherit their money. They saved and invested their savings while living below their means. They shopped for bargains. They invested small amounts of money as they could. They chose their investments wisely and were long-term investors or long-term investors, not speculators. Their kids probably didn’t even know their parents were millionaires.
The authors, Thomas J. Stanley and William D. Danko, interviewed many millionaires. They discovered that most millionaires are the opposite of what one would generally expect. They are not flamers. Instead, they lived their lives without being conspicuous consumers and sacrificing a little in the present to secure a financially free future.
3. “Smart Money: The personal finance plan to crush debt”
I love this book because it gives you a step-by-step plan for planning your financial future while letting go of what isn’t working and learning what is working. Author Naseema McElroy gives you nine financial principles that help you learn how to get rid of debt and accumulate wealth. It helps you learn how to save money, correct mistakes you’ve made, and avoid making mistakes in the future. The book provides you with worksheets and checklists. There are dozens of tips and tricks on topics like debt management, investing, budgeting and more.
The book uses plain English, with little financial jargon, to explain simple concepts that will put you on the right track. It is easy to read for people without financial experience. Complex financial concepts are broken down and linked to actionable steps you can take. You will find a wealth of information in the author’s advice that will allow you to control your debt and envisage a better financial future.
4. “I’ll Teach You How to Be Rich” (2nd ed.)
If you think you have to deprive yourself to be rich, think again. Best-selling “I’ll Teach You How to Be Rich” author Ramit Sethi shows you how to invest your money with the right asset allocation so you can spend guilt-free. He discusses all sorts of possible financial issues you might have, such as how to manage your student loans, how to start saving and investing, and more in this New York Times and Wall Street Journal bestseller. It’s based on tools and systems you can use to achieve your financial goals.
This second edition is timely and contains information on topics as diverse as robo-advisors and how to beat the banks. It’s a refreshing look at personal finance, as Sethi is honest and forthright and even shares her own personal approach to achieving her financial goals. He discusses the concept of conscious spending, optimizing your credit cards, and how to prepare to invest. Throughout the book, he inserts stories of successful people and how they became so, as well as accounts of those who have used his system. This is a book you’ll want to pass on to others.
5. “Rich dad, poor dad”
It is the world’s best-selling personal finance book of all time. Instead of focusing on one area of finance like debt management or investing, it’s a general look that is still relevant. It was originally written over 20 years ago and was recently updated for its 20th anniversary. Over the years, the author, Robert Kiyosaki, has written a series of personal finance books that all started with this book. There are 14 books in the series that cover everything from investing to credit cards to cash flow and more.
Kiyosaki begins with a personal story of how he raised two fathers. One was his real father. The other was his best friend’s father, a wealthy man with a knack for managing money. His “other dad” taught him some simple personal finance lessons and he taught himself, by following those lessons, how to make your money work for you instead of you working for your money. He learned that you don’t have to be rich to be financially successful.
The essential
Many people don’t like to think about money. It is uncomfortable for many people. It’s often because we don’t know all the rules of the road or how to manage our money. Schools don’t teach it. Sometimes parents don’t teach it. We emerge as adults with little or no idea what personal finance means or encompasses. These best personal finance books of 2022 will help you set and achieve your financial goals. There are some other good ones too, as this list will attest.
Financial advice
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After reading these books, you might decide that you need to learn more about how to manage your money. If you do, it would be wise to work with a financial adviser. Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your matching advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.
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