In the pursuit of financial success, the journey often starts with gaining knowledge about money and investing. Check out my favourite books that will make you rich!
Over the past few years, I’ve delved into many books on these subjects, ranging from classics like “Rich Dad Poor Dad” to the psychology-focused “Think and Grow Rich” and investment-centric “One Up on Wall Street.”
In this blog post, I’ll go over the key lessons I’ve gathered from these reads and how they challenge conventional wisdom in finance. Let’s explore these wealth-building insights together!
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Rich Dad Poor Dad
Kicking off our journey is the classic “Rich Dad Poor Dad,” a foundational book that challenges traditional financial teachings. It introduces the concept of assets and liabilities, emphasising the importance of buying assets that generate income and allowing your money to work for you.
Since reading this book my whole perspective of where I put my money has completely changed. Robert T. Kiyosaki encourages readers to view each dollar as an employee letting it work towards their financial goals. This book serves as an excellent starting point for anyone beginning their personal finance journey.
Cash Flow Quadrant
Following the footsteps of “Rich Dad Poor Dad,” the “Cash Flow Quadrant” is a follow on book and explores unconventional paths to financial security beyond the typical nine-to-five job.
It presents four ways to earn money: as an employee, self-employed individual, business owner, or investor. I personally like this book because it opens your eyes to diverse opportunities and challenges the notion that a stable job is the only path to financial freedom.
The 4-Hour Work Week
This was actually one of the first books that I read on the topic of personal finance. Despite its seemingly utopian title, “The 4-Hour Work Week” by Tim Ferriss isn’t about working less; it’s about working smarter. The book encourages readers to build businesses, automate processes, and achieve a retired millionaire lifestyle earlier in life. A perfect option for those looking to achieve financial independence and retire early.
What stood out for me in this book is that it doesn’t neglect the typical 9 to 5 lifestyle, instead it demonstrates ways to start working less hours by increasing productivity and even increase your take home pay. Paired with the insights from the Cash Flow Quadrant, these books form a powerful duo, providing both inspiration and practical tools for financial success.
The Millionaire Fast Lane
Next on the list of books that will make you rich is “The Millionaire Fast Lane” makes a point that there is no such thing as ‘get rich easy’ but there is such thing as “get rich quick.” Author MJ DeMarco emphasises the importance of hard work, discipline, and commitment on the road to financial success.
This book challenges the traditional paths of financial life, categorising them as the sidewalk (spending more than you earn), slow lane (relying on a job to retire), and fast lane (leveraging time to create passive income).
Think and Grow Rich
Now I’ve just recently read Napoleon Hill’s “Think and Grow Rich” and can say it definitely explores the power of mindset in achieving wealth. While others opinions on this book vary, it underscores the significance of abundance-oriented thinking in attaining success.
Understanding that mindset alone isn’t sufficient, Hill’s work stresses the importance of combining the right mindset with consistent, focused action.
The Psychology of Money
Money is as much about psychology as it is about mathematics. “The Psychology of Money” delves into how our beliefs, experiences, and emotions influence our financial decisions.
This book challenges the common misattributions of luck in financial success and encourages readers to focus on patterns rather than individual success stories. What I found interesting was that there are key fundamentals set out that can apply to everyone that don’t require a lot of chance or luck.
Ignorance Debt and Investing
As we transition into the realm of investing, it’s crucial to address our “ignorance debt.” Introduced by Alex Hormozi, ignorance dept is being able to understand the basics of investing.
This is especially important for beginners who may just be starting out. One of his key principals is that going from your current level to $100 million is just the financial information you are yet to learn.
“The Intelligent Investor” by Benjamin Graham and “The Girls That Invest” offer insights into creating a rational framework for decision-making, controlling emotions, and understanding one’s investing personality. If you’re looking to begin your investing journey, these are two great books that will make you rich.
Common Sense Investing
John Bogle’s “Common Sense Investing” promotes a simple yet effective strategy for beginners: investing in index funds indefinitely. While somewhat conservative, this book provides a solid foundation for those starting their investment journey.
What makes this book stand out is how it helps you grasp the basics of spreading your money wisely. It explains the importance of stocks and bonds based on your age, a key aspect often missed in many books that will promise to make you rich.
The Dhandho Investor and One Up on Wall Street
Building on Bogle’s principles, “The Dhandho Investor” and “One Up on Wall Street” highlight the potential for average investors to outperform professionals by recognising opportunities in everyday life. Both books advocate for investing in what you know and understand, leveraging personal experiences for financial success.
In the pursuit of financial success, there are no shortcuts.
The journey involves discipline, persistence, and a keen understanding of both mindset and actionable strategies. Hopefully this post has given you some inspiration to start your own journey.
As you explore these books, remember that investing in yourself is just as crucial as investing in income generating assets. By combining knowledge, discipline, and continuous learning, you can unlock the secrets to building wealth and achieving financial freedom.
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The information provided in this guide is for educational purposes only. Any actions taken based on this information are at the reader’s own risk. It is advisable to consult with relevant professionals or advisors for personalised advice.