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The 10 Best Personal Finance Books

Get your money on track with our picks

Personal finance books help you manage your money better. At the most basic level, you can learn personal finance basics—like why paying yourself first pays off or how to manage and pay off debt—so you'll become smarter and more confident with handling your money. But it doesn't stop there. They can also teach you how to invest, manage a mortgage, create a nest egg, save for retirement, and ultimately help you overcome common money pitfalls. Sure, it’s not light reading, but your wallet—and your investment portfolio —will thank you.

Here are our picks of the best personal finance books to help foster a healthy relationship with your money.

Key Takeaways

Our choice for best overall personal finance book is “Why Didn’t They Teach Me This in School?” by Carey Siegel.
“The Total Money Makeover” by Dave Ramsey gets our nod as the best choice for debt management.
The best memoir on our list is “Rich Dad Poor Dad" by Robert Kiyosaki.
Our top choice for millennials is “Broke Millennial” by Erin Lowry.

Best Overall: Why Didn’t They Teach Me This in School?

Courtesy of Amazon

Ask anyone what they wish they’d learned more about in school, and the answer is likely money. More specifically, how to properly handle one’s finances—enter Cary Siegel’s title, “Why Didn’t They Teach Me This in School?” Siegel, a retired business executive, divides the book into 99 principles and eight money lessons that you should have learned by high school or college but didn’t. This book was initially intended for his five children when he realized they didn’t learn important personal finance principles before entering the real world, but it grew into a well-reviewed read full of money lessons, as well as firsthand experience and advice from Siegel. This easy-to-read book is ideal for new grads or anyone looking to start their personal finance journey on the right foot.

Best Memoir: Rich Dad Poor Dad

You’ve probably heard of Robert Kiyosaki’s “Rich Dad Poor Dad," but there’s a reason it’s stuck around for more than two decades. In one of the most popular personal finance books of all time, Kiyosaki shares what he learned growing up from his father and his friend’s father, the latter of which is the “rich dad” in the title. Those lessons include how you don’t need to make a lot of money to get rich and how to think about assets and liabilities . He also explains to parents why schools won’t teach their kids what they need to know about personal finance. This 20th-anniversary edition includes an update from the author on all things money, the economy, and investing.

Best for Debt Management: The Total Money Makeover

Debt management plays a major role in the state of your personal finances. Need a little help in that area? Take a look at Dave Ramsey’s “The Total Money Makeover.” This New York Times bestseller explains, without mincing words, how to get out of debt and improve your financial picture by avoiding common pitfalls like rent-to-own, cash advances, or using credit. It also offers solid advice on starting an emergency fund, saving for college and retirement, and how to succeed at Ramsey’s famed “Snowball Method” for debt payoff.

Best for Building Wealth: The Automatic Millionaire

Who doesn’t want to be a millionaire? David Bach’s “The Automatic Millionaire,” a New York Times, USA Today, Bloomberg Businessweek, and Wall Street Journal business bestseller, shows you how to do just that. The book kicks off with the story of a couple earning about $55,000 combined annually, and how they achieved their financial dreams. Think: owning two homes, putting their children through college, and retiring at 55 with a $1 million retirement nest egg. The secret? Setting up a financial system that not only pays yourself first but one that is automatic. Bach has also written "Smart Women Finish Rich," "Smart Couples Finish Rich," and "Start Late, Finish Rich."

Related: The Best Investing Books

Best for Beginners: Broke Millennial

If you can decipher #GYFLT, then this is the personal finance book for you. (Hint: #GYFLT stands for “get your financial life together” in social media speak.) Erin Lowry’s “Broke Millennial” explains in her signature conversational style how 20- and 30-somethings can get in control of their personal finances. From understanding your relationship with money to managing student loans to sharing the details of your finances with a partner, this book covers the biggest money challenges facing millennials today.

Related: The Best Investing Books for Beginners

Runner-Up, Best for Beginners: The One-Page Financial Plan

Courtesy of Walmart

Confused when it comes to your money, whether it’s how to properly invest or how to deal with unexpected financial challenges? Carl Richards’ “The One-Page Financial Plan” takes the mystery out of how to effectively manage your finances. This book helps you not only figure out what your financial goals are, but also how to get there in a simple, one-page plan. Richards is a Certified Financial Planner and a columnist for The New York Times.

Best for Spenders: I Will Teach You to Be Rich

Being rich isn’t about not spending money at all. In "I Will Teach You to Be Rich," a New York Times and Wall Street Journal bestseller, financial expert Ramit Sethi explains that you can spend your money guilt-free as long as you have it invested and allocated properly. This title talks about how to deal with all the common money pitfalls, from paying off student loans to how to save every month, and even how to talk your way out of late fees. This 10th-anniversary edition includes updated views on technology, money, and psychology, as well as some success stories of readers who have actually gotten rich from reading—you guessed it—Sethi’s book.

Best for Women: Clever Girl Finance

Women still earn just 83 cents to a man’s dollar, and average earnings are even lower for women who are older or belong to certain race and ethnicity groups, according to the U.S. Department of Labor. In short, women still have to work harder when it comes to their money. Bola Sokunbi’s “Clever Girl Finance” aims to empower and educate a whole new generation of women, sounding off on things like how to keep an eye on expenses, create and stick to a budget, manage your credit, build a nest egg, and take responsibility for your own financial well-being. Sokunbi is a Certified Financial Education Instructor (CFEI) and the founder and CEO of the website Clever Girl Finance.

Best Psychology: The Psychology of Money

This read is an interesting delve into the psychology of money and how your ego, preconceived notions, and even your pride can affect your decisions around money. As expected, this isn’t exactly the best way to manage your investment portfolio, and Morgan Housel’s “The Psychology of Money'' gives readers tips and tools for combating these biases in the form of 19 short stories that focus on the same topic. Housel is a partner at The Collaborative Fund and has worked as a columnist at The Wall Street Journal.

Related: The Best Economics Books

Best for Budgeting: Your Money or Your Life

With more than a million copies sold, Vicki Robin’s “Your Money or Your Life” lays out an easy-to-follow, nine-step plan to help readers change their relationship with money. Whether it’s how to get out of debt, get started investing , build wealth, or even save money by practicing Robin’s signature mindfulness technique, this read has you covered.

Final Verdict

Whether you're new to finances or just looking for more financial advice, the top overall personal finance book is "Why Didn't They Teach Me This In School?" by Cary Siegel ( view at Amazon ). It teaches eight important money lessons you should've learned by high school as well as a whopping 99 principles that will help you save, invest, and build your wealth.

Different methods might be best for different people. For example, many computer programs can help track income and expenses, and they even can be connected to your financial accounts to automatically import data. Others might want to handle the process manually. Regardless, the important thing to do is to set a budget so you can know exactly where you stand with your finances.

Be as detailed as possible when managing your personal finances . Sticking to a budget, paying down debt, and knowing exactly where every dollar is going can help make it possible to increase your savings. Having the details to find that extra $10 or $20 per week or month that you can save or invest today can add up to thousands of dollars years from now.

Budgeting is a big part of financial planning . To be successful, it is important to account for everything necessary to financial health. In addition to simply knowing your income and expenses, you have to think about where you will be in the future with income and expenses. Insurance, a good investment plan, and more can help you with expected and unexpected expenses that may arise.

Meet the Expert

Rachel Morgan Cautero has a master's degree in journalism from New York University and more than a decade of journalism experience, most in the personal finance sector. Most recently, she was the managing editor of DailyWorth, a finance-based media destination for women. She’s been published in SmartAsset, The Balance, The Atlantic, Life & Money, Parents, WealthRocket, and Yahoo Finance.

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August 28, 2023

10 of the Best Financial Literacy Books You Won’t Want to Miss

Navigating the world of finance and investment is hard. Thankfully, there’s a treasure trove of resources out there to guide us, and some of the best tools are books. The best books on financial literacy are filled with more than complex jargon and hard-to-follow advice.

Think about it: the choices we make with our money today can shape our futures for years to come. But how do we ensure we’re making the right decisions? How do we save money effectively and plan our investments wisely?

That’s where practical advice from financial experts comes in. Through their insights, we can learn to navigate the choppy waters of personal finance with confidence.

To achieve financial freedom and security, it’s essential to be financially literate. It’s not just about knowing the difference between stocks and bonds or understanding how a mortgage works. It’s about cultivating a mindset that prioritizes smart financial choices in all areas of life. This means understanding how to budget, avoid debt, invest wisely, and set yourself up for a comfortable future.

We’ve compiled a list of some of the most influential texts on financial literacy. These books are packed with strategies, tips, and wisdom that can help anyone become more informed and empowered with their money.

Let’s dive in.

This absolute classic of personal finance literature has been in publication nearly 100 years — and for good reason. Set against the backdrop of ancient Babylon, this captivating book weaves tales of ordinary people and their financial decisions. These stories offer timeless wisdom on wealth-building and financial discipline.

The core of the narrative revolves around Arkad, the titular “richest man.” He shares the simple financial principles he follows to amass his wealth. The book teaches essential lessons such as living below one’s means, investing wisely, and seeking knowledgeable counsel.

This illustrative narrative stands as a cornerstone in personal financial literature. It presents a tale of two contrasting fathers—Poor Dad (Kiyosaki’s) and Rich Dad (his friend’s). The book delves into the differences in their beliefs and approaches toward money, work, and life.

Poor Dad emphasizes traditional education and a stable job. Rich Dad, on the other hand, champions the importance of financial education, investments, and entrepreneurial ventures.

Kiyosaki outlines how these varied perspectives influenced his understanding of assets and liabilities, ultimately shaping his net worth. Instead of relying on a fixed income, he underscores the significance of creating and acquiring assets that generate income.

Moreover, the book sheds light on the intricacies of stock markets, real estate, and other investment avenues. It urges readers to think beyond the conventional rat race.

Rich Dad Poor Dad ultimately emphasizes that a high income doesn’t necessarily equate to wealth. It’s what you do with that income that counts.

In Dave Ramsey’s The Total Money Makeover, readers are given a step-by-step plan to rectify their financial woes. It’s a comprehensive blueprint for transforming one’s monetary situation.

It starts with the basics: creating an emergency fund and paying off debt. It then delves into more advanced topics, ensuring readers are well-equipped to build wealth and secure a stable future. The practical tools and actionable advice discussed are punctuated by success stories of individuals who have turned their financial lives around.

The Total Money Makeover isn’t about quick fixes. It’s a journey to lasting financial health and independence.

In this text, Vicki Robin and Joe Dominguez offer a refreshing perspective on personal finance. Money, they say, isn’t just a tool for acquiring things. It’s the product of the life-energy you spend to earn it.

This view encourages people to evaluate whether their job and the things they spend on truly add value to their lives. Robin and Dominguez lay out a comprehensive financial plan that goes beyond mere budgeting. Their nine-step program emphasizes frugality, reducing debt, and redefining what “enough” truly means in a consumption-driven world.

The ultimate goal? Achieving financial independence and reclaiming one’s life from the clutches of mindless earning and spending.

Thomas J. Stanley and William D. Danko shatter many popular myths surrounding millionaires in The Millionaire Next Door . As it turns out, the majority of wealthy individuals in the U.S. don’t live in upscale neighborhoods or drive flashy cars.

Instead, they live modestly, often below their means, and prioritize saving over conspicuous consumption. The lesson is simple: true wealth isn’t about earning high incomes. It’s about making wise financial decisions and being frugal.

Stanley and Danko discover rich people often share traits and behaviors. They live well below their means, allocate time and money efficiently, and value financial independence over social status.

The authors argue that many people who appear rich might not actually have sustainable wealth. On the other hand, those living unassumingly might have substantial net worth.

J.L. Collins presents a refreshing perspective on wealth accumulation in The Simple Path to Wealth .

He advocates for the virtues of low-cost index funds because they outperform most actively managed funds in the long run. By keeping investment strategies simple and avoiding the pitfalls of complex financial products, one can steadily grow their wealth.

The book also delves into the intricacies of taxes, debt, and retirement, offering readers a comprehensive yet easily digestible financial plan.

John C. Bogle, the founder of Vanguard Group, has a simple message in The Little Book of Common Sense Investing. The simplest investment approach often yields the best results.

Low-cost index funds, he says, are more profitable than trying to beat the market or hiring a fund manager. They’re also less risky.

Bogle proves his point by showcasing the compounding effects of active trading costs over time. He also critiques the mutual fund industry for its frequent disregard for the best interests of the individual investor.

He ultimately encourages readers to adopt a long-term perspective and to prioritize simplicity and frugality in their investment decisions.

Erin Lowry’s Broke Millennial is a practical roadmap for young adults eager to conquer their finances. Lowry delves into the financial challenges that many millennials face. She offers actionable advice tailored to a generation often criticized for its spending habits.

Lowry also understands there’s no one-size-fits-all solution in personal finance. She emphasizes personal financial journeys, highlighting the importance of understanding one’s unique relationship with money.

She also breaks down complex financial topics into digestible tidbits. She covers everything millennials will find practical. From paying off student loans, to budgeting; navigating tricky financial conversations with friends to managing the intricacies of the gig economy.

Ramit Sethi’s I Will Teach You to Be Rich is a candid guide that dismisses the traditional notions of personal finance. It embraces a modern, more holistic approach to wealth. Unlike many financial guides that tout pinching pennies and forgoing lattes, Sethi emphasizes smart spending, automating finances, and investing in oneself.

Over the course of a 6-week program, Sethi takes readers through a transformative journey. It begins with credit cards, tackles student loans, and finally delves into investments and saving for big goals.

Sethi’s ultimate point is one can lead a rich life today while also preparing for a financially secure future.

The book challenges readers to confront their financial behaviors and beliefs. Sethi’s approach to personal finance is both actionable and motivational. While it is tailored primarily for young adults, the strategies and principles discussed are universally applicable.

One of the standout features of I Will Teach You to Be Rich is its directness. Sethi doesn’t shy away from addressing the common excuses people make to avoid making key financial decisions.

By the end, readers are equipped with more than knowledge. They have a plan to create their version of a rich life.

Benjamin Graham’s seminal work has earned its reputation as one of the foundational texts in the world of value investing. Since its original publication in 1949, the book has guided countless investors in the principles of value investing. This method focuses on buying stocks at less than their intrinsic value.

Graham explains that an investment should be approached with the same thoroughness as a business endeavor. He introduces the idea of “Mr. Market,” a fictional character representing the stock market’s manic-depressive nature. Investors, Graham suggests, should capitalize on Mr. Market’s mood swings rather than be ruled by them.

Much of the book is dedicated to teaching readers how to analyze stocks and bonds from a long-term perspective. Doing so requires thinking of stock as a stake in the company, rather than just a ticker symbol.

This text requires a commitment to fully digest. However, the lessons within offer a roadmap for anyone looking to navigate the waters of investing with a calm and informed approach.

Embarking on a journey into the world of financial literacy can be both enlightening and empowering. These ten essential texts offer insights, strategies, and advice tailored to various stages and aspects of one’s financial journey. They provide not just theoretical knowledge, but practical tools to navigate the complex terrains of investing, saving, and financial planning.

As you delve into these reads, it’s important to remember that knowledge, while powerful, is most effective when coupled with action. These books arm you with the knowledge to make informed financial decisions. However, it’s the proactive steps you take afterwards that will truly shape your financial future. Financial planning, then, becomes the bridge between what you’ve learned and its real-world application.

A well-structured financial plan allows you to set tangible goals, chart out strategies to achieve them, and monitor your progress. Whether it’s early retirement, purchasing a dream home, or ensuring a comfortable life for your loved ones, a robust financial plan turns these aspirations into achievable milestones.

As you consume the invaluable information these books offer, consider complementing your newfound knowledge by delving into the realm of financial planning. It’s the natural next step that can unlock the true potential of what you’ve learned, ensuring that you don’t just become financially literate, but also financially astute and proactive. Remember, the journey to financial freedom is not just about understanding money—it’s about making it work for you in the most optimized way.

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March 5, 2024

Planning for Retirement in Your 50s: Catching Up From A Late Start

Planning for retirement is a vital endeavor that requires careful consideration and strategic financial management. While ideally, retirement savings should begin early in one's career, life circumstances often lead individuals to start their retirement planning journey later in life.