Not every personal finance book is the same. Nowadays these books are a dime a dozen. (Actually, if that were literally true, it would be a pretty good deal.) The fact is, lots of so-called “experts” are peddling books that they claim will help you become wealthy. But whose bank accounts are they most interested in? Their own, of course!
"There are plenty of ways to get ahead.
The first is so basic I'm almost embarrassed to say it:
Spend Less Than You Earn.”
- Paul Clitheroe |
Some personal finance book options, however, are genuinely useful and they can help you gain insight into your own financial problems. Ideally, you should get these from the library or buy them used somewhere. Your first tip on maximizing your income is to never pay full price for something if it’s available at a lesser price! “The Total Money Makeover” by Dave Ramsey is a motivational tool. Ramsey explains in no uncertain terms that getting out of debt and staying out of debt is HARD. Why? Because we’re so accustomed to buying on credit and living beyond our means. Most people in America would be able to live on their salaries if it weren’t for all the debts hanging over their heads. Ramsey includes testimonials from people who have successfully gotten the debt monkeys off their backs, and offers hope and encouragement to those of us who want to gain control of our financial future. “The Automatic Millionaire” by David Bach is another excellent personal finance book. Bach talks about how the little things can add up to large amounts, calling it the “Latte Factor.” If you added up all the money you spend in a year on needless things like lattes, cigarettes, candy bars, or whatever your vice of choice is, you’d probably be appalled at how large the amount is. Bach also suggests setting aside money now for retirement, and having it automatically deducted from your paycheck to remove the temptation of spending it. The book’s title sounds like a get-rich-quick scheme, but it’s actually the opposite. It focuses on long-term planning and sensible budgeting. Finally, we recommend a personal finance book called “The Millionaire Next Door,” by Thomas J. Stanley and William D. Danko. The authors interviewed dozens of American millionaires and found some surprising things that link them. Contrary to what you might expect, these people became - and remain - millionaires by avoiding outlandish luxuries, by working hard, and by living below their means. By showing real-life success stories, the authors bring home the fact that ANYONE can do this. All it takes it self-discipline, determination, and hard work.
"Creditors have better memories than debtors;
and creditors are a superstitious sect,
great observers of set days and times."
- Benjamin Franklin |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
