There’s no question that the best way to become financially literate is to read books about investment and personal finance. Unfortunately, not all of us have the time (or patience) to read through a bunch of them.
But when it comes to financial literacy, books are still one of the best teachers. You learn the nooks and crannies on how to make money work for you even while you’re sleeping instead of getting stuck in the rat race.
So, whether you’re starting to save for the first time or want to know more about smart investment options, these eight books are a great place to start. Each one is packed with helpful advice and tips, making them perfect for anyone looking to build their knowledge of finance and investing.
If you’re ready to take your finances up a notch, then read on – because these books will help get you there.
Top 8 best investment and personal finance books
1. Rich Dad, Poor Dad by Robert Kiyosaki
The book is basically about the difference between what most people call “rich” and “poor.” The author said that rich people do not become rich overnight, and they accumulate their assets over time through wise investment choices.
On the other hand, poor people tend to give up quickly because they think becoming financially stable is difficult. This book will help you understand which type of person you are – if you want financial freedom or money is just useless paper.
2. The Richest Man in Babylon by George Samuel Clason
The book explains the secrets of getting rich using simple language, which is common sense but often forgotten by some because of greed. It has seven parables where the author illustrated how ancient Babylonians became financially stable by practicing these “time-tested” principles.
This book will make you realize that money should not be kept idle, but it needs to be worked on until it multiplies itself faster than our current lifestyle.
3. The Intelligent Investor by Benjamin Graham
The first edition of this book was published in 1949, but it remains one of today’s best financial books. Benjamin Graham has taught Warren Buffett (he is now called “the mentor” because he learned everything from Benjamin Graham), which made him financially stable over time.
One of the key ideas in this book is that an investor can benefit from hiring a professional to handle their money instead of doing it themselves and only trusting someone with your money, which has been tried and tested.
4. How to Make Money in Stocks by William J. O’Neil
This book is a guide to investments that explains the author’s strategy for picking stocks and increasing their value. The key component of O’Neil’s method is finding stocks that show high relative strength.
This means that the stock has gone up in price more than 50 percent over 12 months while also showing an increase in trading volume and market capitalization during the same period.
However, it is important to note that having these three components does not guarantee an investment will be profitable – it merely increases the probability of success. Another fundamental part of how O’Neil makes money through his guidance, which we will discuss below, is knowing when to sell and when to buy.
5. The Automatic Millionaire by David Bach
This book is basically like a guidebook on achieving goals related to investing, buying properties, and other personal finance stuff. You can learn how to prioritize saving because it’s one of the things that rich people always do.
Through the rest of the book, various other ideas about saving are explained while including the basics of investing. For example, one can save more by cutting down on expenses that are not necessary, such as eating out or buying new clothes every week.
The book states that it is better to wait until the next day to make any purchases, giving time for rational thinking.
6. The Book on Rental Property Investing by Brandon Turner
The book is for people interested in real estate and who want to invest but do not know where to start. It introduces the reader to investing through rental properties, specifically intending to build wealth that will last for decades.
The author discusses topics from his own experiences and personal finance and investment gurus. The book provides a background on how rental property works before going into detail about how to acquire a rental property until ongoing care of a few years.
Since there are many different ways to make money through rentals, this book focuses mainly on residential homes, although you can also use the principles for commercial properties.
7. The Psychology of Money by Morgan Housel
The book focuses on the psychological side of money and its effects on society. More importantly, it points out how psychology is an important factor in finance because investors’ decisions are often irrational and emotional instead of rational and logical.
To begin with, Housel starts off his book by addressing why humans find themselves obsessed with money in general. A common point for this fixation would be fear-of-not-having-enough.
Housel tells his readers that this idea of “more is better” isn’t true because there’s a cap on how much happiness one can derive from money. He claims it has something to do with the struggle involved in getting more. Once you have enough to meet necessities, any extra would result in little to no gain in life satisfaction.
8. Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom by Robert Kiyosaki
The book is about how people can use four different strategies to make money. The author aims his book toward an audience of young adults, new on the corporate business scene or even new on the financial scene.
The author’s goal is to get readers prepared for their future by arming them with the knowledge that will help them build wealth and increase their net worth along the way. At the same time, they learn about how to make money in four specific ways: as an employee (working at a job), working for yourself (being self-employed), investing (real estate), or by having your own business which you run and manage (becoming an entrepreneur).
What are the benefits of reading these investment and personal finance books?
Despite the busy schedule, one can find a way to read a good book, even just 10 to 20 minutes a day, to sharpen the mind. Whether you’re commuting or relaxing over a cup of coffee during weekends, here are some of the benefits you get when you start reading these books.
- You will manage your finances efficiently because you know how much money should be allocated for investments instead of spending all on “unnecessary” stuff.
- You will understand what you should do with your current investments and how to make the best out of every centavo invested.
- You will enjoy life more because everything is under your complete control—from the things that happened in the past up to the future that’s yet to unfold.
- You can help other Filipinos who are not financially literate by sharing these books with them, especially if they’re looking for ways to invest too!
Reading these books will help you understand the fundamentals of personal finance and investing and give insight into a variety of different topics. Whether it’s learning how to manage your money better or understanding what happens in the stock market, some benefits reading each book can provide for every Filipino looking to improve their financial situation.
It’s never too early to start thinking about your future. So, take some time this weekend or next week to get lost in one of these best investment and personal finance books over a cup of coffee or tea instead of binge-watching another Korean drama series for a change.