Do you want to improve your relationship with money and earn more? Many of us want to reach our full financial potential, or at least earn enough to cover our needs and occasionally enjoy some luxury. But hard work alone doesn’t guarantee wealth. Chelsea Fagan, founder of The Financial Diet, suggests that you need to have a different outlook on life rather than focusing solely on finance or working hard. Many books also prescribe specific behaviors and actions that help people improve their relationship with money and become wealthy.
In this article, we’ll share the 7 best books on money that teach specific behaviors and actions practiced by wealthy individuals to grow their wealth. These books offer practical, actionable, and motivational advice, taken from real-world examples. But first, let’s explore 7 reasons why you might be struggling to become financially secure.
7 Reasons Why You Struggle to Become Financially Secure
If you have negative attitudes, behaviors, and habits regarding money, it’s harder to build wealth. In particular, here are seven approaches and behaviors towards money that could hinder your ability to build wealth.
Procrastinate or Avoid Taking Action
Do you often think about making financial decisions, like investing stock or real estate, but never actaully follow through? This usually happens because of fear.
For instance, we might fear not knowing enough or making mistakes with our money. However, if we don’t take action, we won’t improve our real-world skills. The more you procrastinate, the greater the inertia.
Self-Limiting Neliefs
Ever saw a great financial opportunity but chose to let it go due to beliefs like “I’m too old to do that,” or “I don’t have enough education”, or “It’s selfish to want more money.” These self-limiting beliefs come from our past experiences, upbringing, and/or societal norms and expectations.
The longer we hold on to these negative thoughts or assumptions, the more they can hold us back from achieving our goals and making more money.
Avoid Putting Ourselves Out There
Imagine you’re in the dating scene, and you find someone you’re interested in. You might grab their attention with your personality or talents, hoping they find you interesting.
The same idea applies when you’re hoping to attract money-making opportunities. You should showcase your skills to demonstrate how you can add value to others interested in working with you. Unfortunately, we often downplay our abilities or avoid putting ourselves out there.
Waiting for Huge Resources
When we want to make more money, we often think we need access to certain resources, like an inheritance, business funding, influential connections, or other forms of significant support to get started in pursuing our goals.
While having access to resources is often the easiest way to secure our plans, it isn’t entirely unachievable without them. For example, these days, you can start a business with little to no money. Free software and resources can help us cut through the thousands of dollars, a huge workforce, and education previously needed to make your business a success.
Lack of Manageable Actions
Setting big financial goals, like “earning a million in a year from trading,” often leads to failure because people don’t break them into smaller, actionable steps. Research shows that focusing on smaller steps helps keep people motivated. It’s easier to commit small amounts of time or money to a goal in the near future than to make larger, long-term commitments.
Overspending
We overspend for various reasons. Some of us don’t earn enough money to cover our basic needs, so we have to borrow money to meet those needs. In other cases, it’s because our credit cards are easily accessible to us, making purchasing so easy. Think about ordering food from Uber Eats or buying clothing online – before you realize it, you’re spending way more than you should be.
It’s even worse when we struggle with self-control or impulsivity. Regardless of the reason, spending beyond your means is a key reasons most people never accumulate enough wealth to become financially secure.
Trading Time for Money
Manual labor means doing physical jobs, such as construction or office work. For many working-class people, these types of jobs limit how much you can earn because you can only work so many hours in a day before you get tired.
Instead, we should focus on ways to make money without having to work constantly. This can include things like investing in real estate, buying stocks, or starting businesses that can earn money on their own. These options allow us to build wealth and create financial freedom without wearing ourselves out.
7 Best Books on Money
These 7 Books explore the behaviors, habits, and actions that foster wealth and success.
Rich Dad Poor Dad by Robert Kiyosaki
1-Sentence Summary
Robert Kiyosaki discusses the money mindsets of his “rich dad” and “poor dad” to teach us about money, financial freedom, and building wealth.
What it Teaches You
Rich people use money to make more money, while the poor and middle class get stuck working for money. Kiyosaki teaches us how to break free from this cycle by getting smarter about money, creating things that make money, and taking charge of our financial future.
Key Takeaways
Instead of working harder to earn more, rich people make their money work for them. The rich create opportunities, understand tax advantages, and use corporations to minimize their tax burden. They learn how to do this from financial literally, something that people born with less money lack.
Best For
This book is ideal for those who want to break free from the paycheck-to-paycheck cycle and build financial independence.
Favorite Quote
“The poor and the middle class work for money. The rich have money work for them.”
Book Review
Rich Dad Poor Dad gives some excellent money tips through simple stories and comparisons of how rich and poor people think. Even though there are a lot of personal anecdotes, Kiyosaki also shares practical lessons on money smarts, handling money, and taking smart risks. If you’re up for questioning the usual ideas about money, this book lays a strong groundwork for getting rich.
You can read the detailed Rich Dad Poor Dad summary here.
I Will Teach You to Be Rich by Ramit Sethi
1-Sentence Summary
Ramit Sethi provides a practical 6-week program that teaches young adults how to handle their money, make smart investments, and set themselves up for a great financial future.
What it Teaches You
Sethi stresses that you don’t have to be a money guru to build wealth. By focusing on smart budgeting, mindful spending, practical banking, and long-term investing, you can take charge of your money and strive for financial freedom. I Will Teach You To Be Rich encourages getting started early, making small consistent investments, and learning from mistakes along the way.
Key Takeaways
Sethi encourages us to understand the basics of money management, including budgeting, investing, and banking, in order to achieve better financial success. He advises learning how to create opportunities, optimize investments, and proactively manage finances. Other key lessons in the book include automating your finances, starting early, and more.
Best For
This book is ideal for young adults in their 20s and 30s who want to break free from living paycheck to paycheck.
Favorite Quote
“Frugality, quite simply, is about choosing the things you love enough to spend extravagantly on—and then cutting costs mercilessly on the things you don’t love.”
Book Review
I Will Teach You to Be Rich offers a straightforward and engaging approach to personal finance. The 6-week program provides a clear roadmap for managing money, reducing debt, and building wealth. While the book is packed with actionable steps and real-life examples, some readers might find the initial setup time-consuming. However, the long-term benefits of automating your finances and adopting conscious spending habits make it a valuable resource for anyone serious about improving their financial health.
You can read the detailed I Will Teach You to Be Rich summary here.
The Millionaire Next Door by Thomas J. Stanley and William Danko
1-Sentence Summary
The Millionaire Next Door reveals the truths about how self-made millionaires build and maintain wealth through frugality, discipline, and efficient wealth management.
What it Teaches You
This book challenges the idea that being rich means living a fancy lifestyle. It shows that most people who become millionaires do so by living simply, working hard, and making wise money choices over time. You’ll find out how to figure out your total wealth, discover the habits of truly rich people, and understand why being financially independent is more important than showing off wealth.
Key Takeaways
In “The Millionaire Next Door,” being wealthy means having a net worth of over $1 million, including cash, investments, and assets. Getting rich takes time and discipline through saving and investing, rather than just relying on a high income or quick wins. The book talks about PAWs (Prodigious Accumulators of Wealth), who live below their means and focus on building up assets, and UAWs (Under Accumulators of Wealth), who tend to spend more than they save. Wealthy people take advantage of market opportunities, often owning businesses in stable but not glamorous industries, emphasizing that how much you save and invest is more crucial than how much you earn or spend.
Best For
Anyone who wants to become wealthy.
Favorite Quote
“Wealth is what you accumulate, not what you spend.”
Book Review
The Millionaire Next Door is an eye-opener for anyone who associates wealth with luxurious consumption. Through decades of research, Stanley and Danko demonstrate that most millionaires are not flashy but disciplined. Their simple, methodical approach to wealth-building proves that becoming financially independent is achievable for everyday people willing to live below their means and make intelligent financial choices.
You can read the detailed The Millionaire Next Door summary here.
Think and Grow Rich by Napoleon Hill
1-Sentence Summary
Think and Grow Rich shares 13 principles that help people use their thoughts to build a mindset for success, wealth, and personal growth.
What it Teaches You
The book explains that success starts with your thoughts. Hill shows how having clear and persistent thoughts, combined with a strong desire, faith, and organized planning, can lead to material success. It’s all about mastering your mindset, overcoming fear and doubt, and consistently visualizing and affirming your goals as if they’ve already been achieved.
Key Takeaways
Your thoughts shape your reality, especially when it comes to achieving wealth or success. It starts with a strong desire and belief that you can make it happen. By vividly imagining your goals and truly believing in them, you can train your mind to turn those desires into reality. This requires patience and a commitment to mastering 13 principles, including desire, faith, persistence, auto-suggestion, and overcoming fear. Hill also emphasizes the importance of practical steps, such as gaining specialized knowledge and making organized plans, to turn your thoughts into actionable strategies.
Best For
Individuals looking to shift their mindset to achieve financial success.
Favorite Quote
“There is a difference between WISHING for a thing and being READY to receive it.”
Book Review
Despite the book being published in 1937, we can apply many philosophies shared to various aspects of life, not just wealth creation. In addition to wealth creation, it shares ideas on discipline, visualization, and the importance of having persistent desires, all drawn from research that spans 20 years. This book is a staple for anyone interested in entrepreneurship and personal development.
You can read the detailed Think and Grow Rich summary here.
The Psychology of Money by Morgan Housel
1-Sentence Summary
The Psychology of Money explores how our thoughts, emotions, and behavior impact financial success.
What it Teaches You
Housel explains that everyone has their own views on money based on their life experiences and that luck and risk are often more important for success than just working hard. Hence, this book teaches you about how to be successful with your money by managing your own feelings, biases, and habits. Housel reminds readers that instead of trying to impress other people, real financial freedom comes from being independent and happy with yourself.
Key Takeaways
Housel outlines three main themes in his exploration of money psychology: our overconfidence in understanding the market, the immense power of compounding for wealth accumulation, and the importance of defining personal financial goals instead of succumbing to societal pressures. He shares insights into how our worldviews and life experiences shape our financial behaviors, stressing that both luck and risk play significant roles in outcomes. Ultimately, Housel’s perspective is that financial peace comes from understanding oneself and managing one’s relationship with money wisely.
Best For
This book is ideal for individuals seeking a fresh perspective on wealth-building.
Favorite Quote
“The hardest financial skill is getting the goalpost to stop moving.”
Book Review
The Psychology of Money is a compelling and insightful read that combines Housel’s engaging storytelling with empirical research. The book challenges conventional finance wisdom by placing emphasis on human behavior and emotions, making it accessible to a wide audience. Housel’s conversational writing style and the use of relatable anecdotes help convey complex ideas clearly. By focusing on the psychological aspects of finance, he provides readers with valuable lessons that transcend mere technical knowledge, encouraging a holistic approach to personal finance.
You can read the detailed The Psychology of Money summary here.
The Richest Man in Babylon by George S. Clason
1-Sentence Summary
The Richest Man in Babylon offers timeless financial wisdom through a series of parables.
What it Teaches You
Clason’s book teaches important money lessons through the stories of Arkad, the richest guy in ancient Babylon. The main ideas are saving money, controlling spending, and investing smartly to make your money work. Each story shows how being smart with money can help you get rich, and it emphasizes the need to protect your money, invest in yourself, and be ready for unexpected events. The big takeaway is that getting rich takes time, like watching a seed grow into a big tree.
Key Takeaways
The book suggests paying yourself first by setting aside at least 10% of your earnings before you spend on anything else. It also emphasizes the importance of living within your means, which means controlling your spending so you can save and invest more than you consume.
It talks about how important it is to make your money work for you by investing your savings to create income-generating assets. Furthermore, the author explores protecting your wealth – advising, seeking reliable advice, and ensuring your investments are secure to protect your hard-earned money. There are four other key principles discussed that are important for building wealth.
Best For
Anyone wanting to become wealthy.
Favorite Quote
“Gold is reserved for those who know its laws and abide by them.”
Book Review
The Richest Man in Babylon is a classic in finance literature, with its insights still holding true today. Through engaging storytelling, Clason illustrates the principles of financial wisdom that can help people take charge of their financial futures. Each story reminds us that wealth isn’t only about luck but also about forming good habits and making smart choices. This book teaches you how to build wealth and stresses the importance of sharing knowledge and helping others grow financially.
You can read the detailed The Richest Man in Babylon summary here.
The Total Money Makeover by Dave Ramsey
1-Sentence Summary
The Total Money Makeover by Dave Ramsey debunks modern financial myths and presents a step-by-step plan for achieving financial independence.
What it Teaches You
This book offers a no-nonsense approach to personal finance, breaking down the barriers many people face when trying to improve their financial health. Ramsey emphasizes that true financial transformation is centered on behavior change, discipline, and consistency. His 7-step Baby Step plan teaches readers how to conquer debt, save for emergencies, invest for retirement, and ultimately achieve financial peace.
Key Takeaways
Ramsey encourages us to get real with our money and owning up to our financial responsibilities. He debunks common myths about debt, like the idea that it can make you rich, and instead shows how it can hold you back. Ramsey says saying no to unnecessary spending and not worrying about keeping up with others is key to long-term financial success. His 7-step plan starts with saving $1,000 for emergencies, then paying off debts using the “debt snowball” method, saving more for emergencies, investing for retirement, and paying off a mortgage. In the end, the plan aims to help you reach a point where your money works for you, and you’re not relying on a paycheck.
Best For
Anyone struggling with debt or looking to take control of their financial future.
Favorite Quote
“We buy things we don’t need with money we don’t have in order to impress people we don’t like.”
Book Review
The Total Money Makeover is a practical and relatable read. Ramsey shares his own money mess-ups and comeback to connect with readers and gives simple, effective advice. His plan is straightforward but needs determination and commitment, so it’s doable for anyone ready to make sacrifices. The real-life success stories in the book are inspiring and show that anyone can transform their finances. While some of Ramsey’s tips might be tough in the short term, his focus on long-term wealth-building is empowering and doable, making this book a great resource for anyone serious about reaching financial independence.
You can read the detailed The Total Money Makeover summary here.
Best Books on Making Money: Bonus
Security analysis by Benjamin Graham
Security Analysis changes how investors see the stock market and value investing. Graham dives into the nitty-gritty, stressing the importance of looking at a company’s fundamentals instead of getting caught up in market hype. He talks about important factors such as intrinsic value, margin of safety, and the difference between investing and speculating, giving readers a solid framework for making smart decisions.
With real-life examples, Graham sets up both new and experienced investors with the tools they need to handle the ups and downs of financial markets. It’s a must-read for anyone serious about growing their wealth through savvy investing.
Millionaire Teacher by Andrew Hallam
In Millionaire Teacher, Andrew Hallam tells his story of going from a regular teacher to a millionaire. He shares practical tips on how to build wealth using simple but effective financial strategies. Hallam dispels common money and investing myths, stressing that anyone can achieve financial success, regardless of their wealth or education. He recommends low-cost index funds, consistent saving, and living within your means. He supports his advice with personal stories and actionable tips.
This book is easy to read and serves as a wake-up call for readers to take charge of their finances. It’s a valuable guide for anyone aiming for financial independence without compromising their lifestyle.
Conclusion
Financial security depends on several factors, such as access to resources, family background, and economic conditions. However, having a positive attitude towards money can help you recognize any challenges you face and take steps to address them.
The books we discussed in this article are super helpful in improving your attitude and habits associated with money. They give you great insights, strategies, and practical steps to boost your financial know-how and enhance how you deal with money. Furthermore, they offer practical advice that can empower you to break free from limiting beliefs and cultivate a more positive and proactive approach to your finances.
So, why not start moving toward financial security by reading these best books on money? It could be the first step to turning things around and reaching your goals.
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