Personal Finance Books You Absolutely MUST Read in Your 20’s

I get it, summer is here and last thing you probably want is reading books, I mean why would you read a book when it is so nice out, partying every night, sleeping-in the next morning, and hitting the beach or any other activity that you do to forget about school. Well, I also believe that it marks the best time to read books that can improve your life financially. I have never found books that were part of curriculum at high school or college any interesting but I had to read them in order to do the assignment, sounds familiar?

Then, I read one book based on its reviews and I just thought that getting rich quick is possible, I cannot argue with that but it is not for everyone. Then, I started doing research on more and more books to read and found that I am really into books that have financial aspects to it – especially touching the money and handling money including investing, growing, saving, and overall building a healthy financial lifestyle. Many current youngsters know barely anything about handling money and how for example getting started early with investing could drastically change your life in years to come. If you haven’t, check out my post on magical penny and how a penny that doubles becomes $10.7 million in just 31 days.

Understanding how to handle money is a crucial life achievement that you can master and books below I talk about are easy-to-read books that will teach you all the basic foundations of investing, growing, budgeting, and especially the effective ways to pay off those student loans.

I cannot guarantee that you will get rich from these books but reading them and actually consuming the information can and will improve your personal financial life but in the end remember that it is all up to you to make changes in your life for the better or for the worse.

Here are the Books You Absolutely MUST Read in Your 20’s that will Change Your Day-to-Day Financial Life;

“Millionaire Next Door” by Thomas J. Stanley and William D Danko

This book was first published in 1996,” The Millionaire Next Door” examines the research that Danko and Stanley have worked on for 20 years. The book focuses on examining the America’s Millionaires and what they did throughout their life to become millionaires. There are many comparisons between different types of millionaires and even compares people that are living on the same street but one is multimillionaire and the other is not even close to be one, including cars and everything that they own, so the true stories will blow your mind.

Why this book is great for youngsters:

The Millionaire Next Door” is great book for 20s because it is loaded with basic techniques of personal finance with simple strategies like “spending less than you earn”, diversifying your investments” and “avoiding buying status objects”. This book will help you to develop some great habits from the page one.

Favorite Quote from Readers

“This is such an inspiring read because it shows almost anyone can become a millionaire if you live below your means and invest well. I love that the majority of millionaires are people you’d never suspect because they don’t live flashy lives in big houses with high-status toys abounding. If you make $200,000 a year, but spend $220,000, you’re in trouble. But if you make $50,000 a year and live on $35,000, investing the rest, over time you’re going to be in great shape.

I grew up in a super-affluent suburb. My friends’ lived in big houses and mansions with luxury cars and country club memberships. We lived in one of the smallest houses in the suburb. My mom was so frugal. I thought it was such a drag!! But when she died (too young), she’d saved enough so that my dad, who lived another 30-some years, was comfortable in retirement. I wonder now if any of my high school friends’ parents were actually living on the edge in trying to keep up with the Joneses.

Years ago, I used to charge like crazy. Now I save like crazy, just like my mom”

-Francie N

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“The Investment Answer” by Daniel Goldie and Gordon Murray

 

Why this book is great for youngsters:

Investing properly as I mentioned earlier is a crucial life achievement that if you can achieve it, then your financial life will be much better off. One important thing about investing though is that the earlier you start – the better you will be because the time in investing is crucial. Therefore, reading this book in your 20s will have a great impact on you. Best part is that it is very brief and straight to the point.

Favorite Quote from Readers:

“One of the advantages of a college education with a major in finance is that you learn the fundamentals, and, more importantly, you learn the boundaries of the universe in terms of what the field includes and what it excludes. Spend an hour or so reading this book, and you will also get that comfortable feeling that comes from knowing that you understand what personal investing is really all about. You will get the “big picture” and how it affects you.

I have been a full-time faculty member teaching at the college level for the past 35 years and must say that the authors have managed to capture the essence of personal investing in about as few pages as I have ever seen and with a clarity that is very rare in books on this topic. I intend to make it required reading for both my undergraduate and graduate personal finance classes”

– Stephen H

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“I Will Teach You To Be Rich” by Ramit Sethi

I Will Teach You To Be Rich goal is to cover a six-week personal finance program focuses on 20-to-35-year-olds who want to master the money management with least amount of effort needed. It is based on four aspects around personal finance – saving, banking, budgeting, and investing.

Why this book is great for youngsters:

I Will Teach You To Be Rich book is hands up one of the best books out right now for younger generations. It is humorous, very educational, and every question you have in your head right about finance you can find it in the book and also super easy to read.

Favorite Quote from Readers:

“I love this book. I wish I’d read it when I was 23, although (sadly) I don’t know if I would have been disciplined enough to follow its advice. If I could give 23-year-old Me any advice, reading this book (along with Dave Ramsey Complete Guide to Money) would be HIGH on the priority list.

I was always wondering “Am I doing this right?” when it comes to finances, saving, investing, insurance. Eventually, I just kind of stopped worrying about it, shrugged my shoulders, and my bad habits became “my way”.

I read Ramit’s book, which provides a blueprint to a foundation of financial habits that removed worry from my personal finances. Questions were met with answers and explanations; and the doubt and uncertainty I used to have was replaced with peace of mind. Now I know I’m making the right decisions”

– Eric S

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“Thinking, Fast and Slow” by Daniel Kahneman

The “Thinking, Fast and Slow” takes readers on a tour of human mind and focuses on two similar yet different systems in our brain behavior that drive us to make decisions. One is fast, intruitive, and emotional, and the other is slow, deliberative, and logical. The book primarily focuses on how we make decisions and what makes us to choose one over another. To be in a great financial point – you first need to decide and this book will help you to start making decisions right from the start.

Why this book is great for youngsters: 

The secret of personal finance is not just something you can learn but it is something that changes and affects us almost every day with decisions that we make. “Thinking, Fast and Slow” offers help on unlocking the decision-making processes because when it comes to personal finance, making the right decisions and understanding the outcomes with every decisions is a key secret to successful financial future.

Favorite Quote from Readers:

“Perhaps we’re not as “free” in our decisions as we might like to think, if “priming” has such a stunningly reproducible effect. Perhaps we’re not so determined, if activities that initially require “System 2” attention, can be turned into second-nature, “technical-expertise intuitions.” I.e. learning and training MATTERS in our ability to detect and respond to events that… if untrained… might take advantage of our brain’s inherent “blind spots” or weaknesses.

Perhaps childhood religious indoctrination is a very adept recognition of these mental tendencies/flaws, so profoundly (if intuitively/naively) expressed by Ignatius Loyola, founder of the Jesuit order, “Give me the boy until 7, I will give you the man.” (paraphrased; forgive me)

Kahneman’s discoveries and documentation of mental capacity and biases could form the basis of a “Mental Martial Arts” program: an alternative form of indoctrination, in which students are trained to understand their brains’ weaknesses, and learn to take stances or engage in practices that eliminate or reduce the errors to which these weaknesses can lead.

This book will rearrange the way you think… about how you think”

– R.A Schneider

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“Rich Dad Poor Dad:What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!” by Robert Kiyosaki

Book “Rich Dad Poor Dadis the actual story of the author growing up with two dads. His real father and the father of his best friend, the rich dad – and the way both of his dads shaped his mindset on money and investing. This book focuses and compares the two primary concepts: working for money vs having your money work for you.

Why this book is great for youngsters: 

Have you ever wondered in high school or even now how different your life would be if you were raised by a rich or poor dad? If you ever wondered or if you want to be a rich father one day to your children? Then read this book and follow and apply his rules in your personal financial life. The author is also worth around $80 million dollars as of today.

Favorite Quote from Readers:

“This book is not just about money. It’s about how we are taught to think; how we are programmed by schools, family, and friends to look at the rich as greedy no good bloodsuckers and opportunities as risks. It is an attempt to reprogram minds to look at why we do what we do.. why do we buy all these shoes, clothes, cars, jewelry.. have we earned it or are we just trying to maintain an image?

To me the most important thing it teaches is that being educated is the key.. educated in our motives, in money, in the world around us.. educated does not always mean a degree lessons can be learned anywhere at anytime”

– L Lee

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“The Total Money Makeover: A Proven Plan For Financial Success” by Dave Ramsey

The “Total Money Makeover” offers practical advice to getting out of debt. If you are looking at ever getting out of debt like student loans, auto loans, or any other loans and you are serious about changing your financial situation then this is the book you need to read and follow the plan as guided of getting out of debt.

Why this book is great for youngsters: 

The book is not just a way of getting out of the debt but majority of people will get in some kind of debt. By reading this book as youngster you will most likely be the one to avoid debt like a plague when the time for any financial decision comes. Reading it in your 20s will pretty put you way ahead of everyone as you will hopefully think of circumstances before making a choice.

Favorite Quote from Readers:

Dave Ramsey’s book allowed me to gain a new perspective about saving money, budgeting, and investing. I went from having saved no money (ever), to paying off debt and saving my first 10k. This book is well written, entertaining, and easy to understand. Dave does an amazing job of outlining the basics of changing harmful money habits. Overall GREAT read!

– A C

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“The Little Book of Common Sense Investing” by John Bogle

The Little Book of Common Sense Investing” explains how the index funds work and how it can be used to build wealth. The author explains everything you need to know on investing. Do you want to have a life where you can decided when you want to work?

Why this book is great for youngsters: 

If Warrant Buffet read this book at the age of 19, and as we can see it has worked out for him, then it might work out for you. In fact Warren Buffet still thinks that this book is still one of the best investing books out there.

Favorite Quote from Readers:

“Since I first challenged an “investment advisor” to show me HIS portfolio of stocks many years ago (He would not.), I have been very reluctant to follow the advice of such people. After thirty years of investing, I have come back to my first impression: indexing is the way to go. I started out when I was very young, controlled my expenses, saved, and now I work whenever I feel like it. I have weathered all the recessions and have never panicked and sold; I live below my means and never look at my portfolio; you don’t lose money until you sell. Indexing and remaining cool have paid off handsomely; now if I could just teach my two sons all I have learned”

– Jay B

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Bottom Line

Remember that everything you do financially today will reflect in your future. Decide what you want to do with money because if you want to live average and I’m not saying anything is wrong with that then follow the average people, but if you want more, prosper, and grow then you will start reading the books I talked above.

Posts you might find interesting:

Richard Barnett is a student majoring in finance, entrepreneur, marketer, content writer, traveler, and financial blog “Student Money Adviser” owner. You can read more about me here.

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