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3 Personal Finance Books to Read

Updated: Mar 26

Interested in personal finance? Take a look at my top 3 books to read on personal finance to help further your knowledge on the subject!


1. Rich Dad, Poor Dad

One of the first books I read about personal finance was Rich Dad, Poor Dad by Robert Kiyosaki. I heard a lot about this book before I picked it up and it's very polarizing - everyone I know either hates it or loves it.

The one thing I keep hearing from people who dislike the book is that it doesn't give you a replicable formula for generating wealth. Spoiler alert: it's not supposed to. This is Robert's personal experience with generating wealth and it has a lot of nuggets on how you can also apply these wisdoms to your own life to generate wealth. A lot of what Robert did can't necessarily be replicated word for word.

For example, in one of Robert's real estate investment anecdotes, he talks about how bad the economy was in the 1990s. Houses were on a deep discount and by shopping at a foreclosure auction, he could find a $75,000 house selling for $20,000 (which is nearly impossible now as we are in a hot housing market in Feb 2022). He was able to borrow $2,000 from a friend for 90 days in exchange for $200 interest. Long story short, he was able to sell the house for $60,000 plus a $2,500 processing fee, so he essentially made $40,000 on this transaction. There are several things about this anecdote that doesn't make it realistic for some of us. First, none of my friends would loan me $2,000 in exchange for $200 in interest. My parents wouldn't even do that. Second, he was lucky that the house he purchased didn't require significant renovations or work done to make the place inhabitable. When you're buying at an auction, you can't view the property prior to purchasing. You can get really lucky and it's in perfect condition, or you can be screwed because the owner has been neglecting the place due to the inability to pay for repairs, etc. The point isn't that this exact situation will happen to you. The point is that you have a better chance at finding a good deal at a foreclosure auction than just buying a property listed on Zillow. If you read the book from that lens, you'll learn a lot of interesting ways on how money can work for you.

2. We Should All Be Millionaires

I highly recommend reading We Should All Be Millionaires by Rachel Rodgers. First off, reading this book felt like I was talking to my best friend. Rachel is great at making this topic easily digestible with quick snippets of information that is easy to follow and understand. Richard Kiyosaki sometimes skips information and doesn't necessarily explain certain details, but Rachel does a great job of providing the entire context so you can better understand the lesson. Both Richard and Rachel talk about how owning and running a business can grow your wealth, but they approach it in different ways.

3. Psychology of Money

The Psychology of Money by Morgan Housel is a good read because it gets into how people perceive money and the emotional connection we have with money. It brings awareness to how we react to good news and bad news and how our behavior influences the decisions we as humans make. If you haven't read any personal finance books yet, this is a great one to start with. Your behaviors and mindset shape the decisions you make and it's important to be aware of what they are. Once you have a better understanding of it, you can then start being more aware of the money decisions you make. Personally, if you have read other personal finance books, you might be able to skip this one as it might be a bit boring. Other personal finance books do touch on this topic, but none are fully dedicated to the topic as this book is.

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