My top 3 books about money 📚

Reading about money and finances can often seem to be the most boring thing, but if the books are great, they can change your life for the better.

Not only that, but they can also help reshape your relationship with money, something we learn very early on, but is hard to change once we become adults.

Maybe you've got a holiday planned and looking to pick up a book to burn time at the airport? ✈️

Here are my top 3 books on money that could make a lasting impact.

1. “The Psychology of Money” by Morgan Housel

Hands down one of the best books written about money.

“The Psychology of Money” explores the emotional and psychological aspects of personal finance.

Morgan Housel presents 20 short stories that demonstrate how people think about money, the mistakes they make, and how they can learn to manage their finances better.

The book highlights that financial success is not just about knowledge but more about behaviour. Housel delves into the irrational ways people perceive money and offers insights into developing a healthier and more effective financial mindset.

Key Takeaways:

👩‍🎓 Behaviour Over IQ: Financial success is more about how you behave than how smart you are. Simple but consistent habits can lead to better financial outcomes. Hint - investing!

📈 Compounding Power: Understanding and harnessing the power of compound interest is crucial for long-term wealth building.

👶🏼 Tail Risk: Recognise and prepare for rare but impactful financial events that can significantly affect your finances.

🤑 Enough: Know when you have enough and avoid the trap of constantly wanting more, which can lead to poor financial decisions.

2. “I Will Teach You to Be Rich” by Ramit Sethi

A practical guide to personal finance for everyone. Ramit combines financial advice with actionable steps and humour to make the often daunting topic of money management accessible.

The book covers a range of topics, including savings, investing, budgeting, and automating finances, while debunking common myths about money.

Ramit emphasises the importance of starting early and taking control of your financial future through a series of straightforward strategies.

Key Takeaways:

🤖 Automate Your Finances: Set up automatic transfers and payments to ensure you save and invest consistently without having to think about it. Something I’ve learnt from this book and swear by now.

📝 Conscious Spending Plan: Focus on cutting costs mercilessly on things you don’t care about and spend extravagantly on things you love.

💷 Invest Early and Often: Take advantage of compound interest by starting to invest as soon as possible, even if the amounts are small.

🔊 Negotiate Everything: Whether it’s your salary, bank fees, or a purchase, negotiating can save you significant money over time.

🏝️ Build a Rich Life: Personal finance isn’t just about scrimping and saving; it’s about creating a life that aligns with your values and dreams.

3. “Your Money or Your Life” by Vicki Robin

A transformative book that encourages to rethink our relationship with money and life. It includes a nine-step program designed to help us achieve financial independence by examining our spending habits, reducing expenses, and increasing savings.

The book emphasises the concept of “life energy,” equating money spent to time spent working, and advocates for a minimalist approach to achieve financial freedom and a fulfilling life.

Key Takeaways:

🔋 Life Energy: View money in terms of the time and effort (life energy) spent to earn it, making spending decisions more conscious and meaningful.

🤸‍♀️ Financial Independence: Aim for financial independence, where your investments generate enough income to cover your living expenses.

💵 Track Your Spending: Keep meticulous records of every dollar you spend to understand your spending patterns and identify areas to cut costs.

📊 Minimize and Optimize: Reduce unnecessary expenses and focus on spending money in ways that bring true value and satisfaction to your life.

🧘‍♀️ Purposeful Living: Align your spending and financial goals with your values and life purpose to create a more meaningful and intentional life.

My weekly recommendation

Interesting conversation from The Money with Katie Show on the rise of people buying properties together with friends. Bad idea?

Until next time ✌️

Lina at Money Blues